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How much are people asking for in closing cost concessions?

About 5 yrs ago in MD and NC, it seemed the average was $3-5K. Is it higher now since the market is so bad?
  • December 17 2008 - Baltimore
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Answers (8)

FHA will allow up to 6% - Conventional will only allow up to 3%.  It could be higher because property values are higher from 5 years ago.  Concessions depend on the buyers needs and if the seller is willing to give incentives. If there is enough concession, the buyer can use it to buy down rate and/or be reimbursed out of pocket costs, appraisal, insurance, application fee, inspection. 

  • December 17 2008
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Profile picture for Carole Tyne

In AZ, it is typical to see 3% asking for closing costs.  Though some lenders will allow for up to 6%.  Higher % is usually seen with buy down the rates.

In AZ, the seller only pays for what precentage is actually used for closing costs.  Meaning if the seller agrees to 3% but only 2.5% is used then the difference of .5% is not paid out. 

www.Buysellazhome.com
 www.BuySellAZHomes.com

  • December 17 2008
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Lenders have a percentage limit on the amount that a Seller is allow to pay towards closing costs.  In Virginia FHA and Conventional loans allow a maximum of 3% of closing costs to be paid by the seller.  Most of the first time home buyers are asking the full 3%.
  • December 17 2008
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You might check with the lender to see what all is included in the closing sosts.That seems a little high to me.
  • December 17 2008
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$11k seems very high. 
  • December 17 2008
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Profile picture for debmccleary
Thanks. We have an offer on our house but they are asking $11K, and that seemed high on a $210K house.
  • December 17 2008
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It shouldn't be higher. This is the norm in Tn. Hope this helps!

Donna Jo
  • December 17 2008
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It is about the same (depending on the price of the home)
  • December 17 2008
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