Is There a Customary Amount That Sellers Pay Towards Closing Costs?

by admin on May 9, 2010

I think buying a house in Chicago for about $ 400K. My friend told me to expect to pay about 25,000 in closing costs, unless your dealer can help you. Traditionally sellers never pay all closing costs? If this is not all that kind of percentage does not often give sellers closing costs?

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{ 5 comments… read them below or add one }

1 justwant2know May 9, 2010 at 2:48 pm

It is all negotiable. For example if you have a house listed for 350,000 and you submit an offer of (1) 340,000 with 10,000 closing costs paid by the seller or a offer of (2) 330,000 with no closing costs there is no difference to the seller. However option 1 is actually better for the buyer because its 10,000 cash that the buyer can finance

2 happy2b_white May 9, 2010 at 2:42 pm

Depends on where you live, which lender you use, liens against the property, and how the contract is written. There is no “customary” amount.

Remember, the seller pays the agent’s commission, your biggest expense will be the mortgage insurance. I’d say that 25K is on the high side. If you have 40K (including downpayment and earnest money) to put into the deal everything else can be worked out.

3 SJR May 9, 2010 at 2:16 pm

Having the seller cover all or part of the closing costs is negotiable. Sometimes sellers will cover 100% and sometimes none of the closing costs.
Ask your realtor to check for you. If you have not negotiated it then you have to pay it all. Congrats! and good luck.

4 reenzz May 9, 2010 at 1:20 pm

Sellers do not typically pay any of the closing costs unless agreed to in the contract of sale. 25K is a bit high for a 400K loan. I would expect it to be more in the 10K-12K range.

5 CAtransplant May 9, 2010 at 12:54 pm

Each deal is different. I hope you are working with a buyer’s agent who can negotiate for you.
In today’s market, sellers are more willing to assist with closing costs. You should write in your offer that you want the seller to pay closing costs.
You can ask for all or a percentage and it all depends on how motivated the seller is to sell that property.
They will probably counter unless they are VERY desperate!
Ask your Realtor for advice!

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