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

By: justwant2know

justwant2know — Sun, 09 May 2010 14:48:46 +0000

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

By: happy2b_white

happy2b_white — Sun, 09 May 2010 14:42:54 +0000

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.

By: SJR

SJR — Sun, 09 May 2010 14:16:41 +0000

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.

By: reenzz

reenzz — Sun, 09 May 2010 13:20:49 +0000

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.

By: CAtransplant

CAtransplant — Sun, 09 May 2010 12:54:28 +0000

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!