- Find a Real Estate Professional
- Realtors®
- Mortgage Lenders
- Home Improvement Pros
- Other Real Estate Services
- Review an Agent, Lender or Pro
- Marketing on Zillow
- Real Estate Agent Advertising
- Join the Professional Directory
- Popular
- Real Estate Market Reports
- More
Replies (8)
- Steve Neuenschwander, "SteveNeuen"
- Contributions:281
Well said. I personally think a seller paying buyers closing cost is dead wrong. However, the door has been open a long time ago. Once open there is no going back. Part of the reason for the housing mortgage melt down was started by this allowance and no down payment. We seemed to have learned nothing from the experience of the last two years.
- Brian French
- Contributions:141
I try, as a real estate instructor, to show new agents, sellers, and buyers that economically, sellers really do not pay any cost when selling their home. Like any commodity, the cost of selling a home are added into the price. Just like a pack of cigarettes, all those government taxes are passed on to the consumer not just absorbed by wholesaler and retailers
- Gary Nance, "nancerltrs"
- Contributions:61
Good point!
A lot of the buyers that I have been dealing with recently do not have the funds for the downpayment plus closing costs.
I usually prepare my sellers for concessions in one form or another.
A lot of the buyers that I have been dealing with recently do not have the funds for the downpayment plus closing costs.
I usually prepare my sellers for concessions in one form or another.
- Principal Realty
- Contributions:15
I agree as most of my buyers have the sellers pay closing costs.
As in most cases the buyers dont have both down payment and closing money.
As in most cases the buyers dont have both down payment and closing money.
- Brian Johnson, "Brian P Johnson"
- Contributions:20
If I was selling my house I'd offer to pay closing costs and send the buyers family to disney world if needed. All a seller needs to be concerned with is his bottom line. In this market the seller should be doing everything he can to incourage a buyer to come take a look at his house including offering higher commisions to the selling broker. Bottom line what ever works.
People who think down payments had anything to do with the housing market meltdown are out of touch with the market. VA has offered no down payment no closing costs to veterans since WWII. Which lead to an economic boom in the 1950's.
Lack of documented income is what caused the recent meltdown.
- Dan, "the_country_hick"
- Contributions:4699
Brian, you should not lump in V.A. loans with others.
The big difference is the kind of person getting the loan. The military instills certain things in people that actually make them highly likely to live up to their contracts. Many other people look at just the $$$ of the situation while many who are or were in the military also look at personal honor.
The meltdown was caused by many different things all working together to create a big problem. One of the biggest things was people buying to sell later for a huge profit not really wanting a house.
The big difference is the kind of person getting the loan. The military instills certain things in people that actually make them highly likely to live up to their contracts. Many other people look at just the $$$ of the situation while many who are or were in the military also look at personal honor.
The meltdown was caused by many different things all working together to create a big problem. One of the biggest things was people buying to sell later for a huge profit not really wanting a house.
- Angela Hardy, "AngelaHardy"
- Contributions:339
I prep all my sellers to expect for a buyer to ask for closing cost assistance. The discussion that we have is that the bottom line is what is important - not how we got there. If we take a higher offer with some closing costs or a lower offer with no closing costs that net to the same figure - it all ends the same for the seller. Once they understand this concept negotiations tend to go much more smoothly as they go not feel like they are paying the buyer to purchase their home - or giving away profit just to help the buyer.
I also discuss with my buyers that the fact that no seller is "giving" them closing costs - they are financing it in to the purchase. If the seller wants a net price of $300k we can get there by offering $300k with no closing costs or $305k with $5k in closing costs.
If both sides understand this concept the negotiations tend to go much more smoothly!
I also discuss with my buyers that the fact that no seller is "giving" them closing costs - they are financing it in to the purchase. If the seller wants a net price of $300k we can get there by offering $300k with no closing costs or $305k with $5k in closing costs.
If both sides understand this concept the negotiations tend to go much more smoothly!
- Brian Johnson, "Brian P Johnson"
- Contributions:20
Dan the country_hick,
The point I was trying to make on VA loans is people have bought homes with no down payment for years. Consumers buy everything without a down payment. You can buy a $100,000 auto and drive it to Canada.
There was only one main change in mortgage underwriting 5 years ago.
Consumers were not required to prove they had enough income to handle the payments.
The point I was trying to make on VA loans is people have bought homes with no down payment for years. Consumers buy everything without a down payment. You can buy a $100,000 auto and drive it to Canada.
There was only one main change in mortgage underwriting 5 years ago.
Consumers were not required to prove they had enough income to handle the payments.
SHOULD A SELLER PAY THE BUYERS CLOSING COSTS? What you need to know...
-
- 0.0/5.0
- (no reviews)
Contributions:182As a seller you never "HAVE TO" do anything. However as a seller you need to know that you should do whatever you can control to bring the most amount of potentilal buyers to your house. there are so many variabls you can control, you do not want to alienate buyers from teh start.
As a listing agent and as a seller the goal is to bring about the quickest sale at the most obtainable price. The first thing you need to do is get a brokers price opinion. you need to know what teh value of your property is in todays market. You need to price your house at or near market value. Make sure though you leave room to negotiate though. Virtually all offers will be lower than your asking price and yes some buyers may ask you to pay 3% of the closing costs. It is common no matter where you live.
Most buyers who are asking for their closing costs to be included need to have them included. They have great credit but do not have a large savinges. If you decline offers asking for credit for closing costs, you may be hindering the sale of your own house. You can negotaite the price and teh amount of closing costs you are willing to credit. You usually can get a higher price which offsets the credit to the buyer and allows you to sell your house.
Updated August 15, 2010
Blog written by:
Scott Godzyk
Godzyk Realty Group
Stating a discriminatory preference in an advertisement for housing is illegal. If you think this content is discriminatory or otherwise inappropriate and feel it should be removed from Zillow, please let us know by completing the information above.
We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.