- 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
Answers (9)
- Afshin Ben Rafael, "Ben001"
- Contributions:50
I agree it is all negotiable. And yes I have seen the title company reducing fees.
- Andrew Adams, "203K Specialist"
- Contributions:9349
Even if the bank agrres to pay closing costs the buyer is still really paying! If they are willing to pay 3% in closing costs they would also be willing to sell for 3% less! So at the end of the day the buyer will pay 3% more for the property..but the seller will at closing credit the borrower 3% of the sales price...that the buyer is paying!
Buyer always pays.... anything else is spin!
Buyer always pays.... anything else is spin!
- Tamara Thomson, "tamararemaxhomes"
- Contributions:20
Everything is negotiable!! Many banks will pay customary fee's though it is still worth checking to make sure. As for closing cost banks realize they have to pay, not all will but most.
- George Raymondo, "The Loanranger"
- Contributions:144
I looked up my last 10 REO closings and found that than 78% of bank owned properties paid closing costs of up to 3%. If you don't ask, you will not get it. Think of it like a job. Ask for the kitchen sink and then negotiate downwards to meet the seller half way. The market seems to have more inventory recently, you should stand a better chance to getting a help with costs. Also, find a good Realtor who isn't afraid to ask, but remember the market condition will determine if you should request those concessions. If your competing with investors because your on the lower side of the market, your going to have a difficult time anyways. But most importantly, make sure you know all your loan options. We have several programs that can help you finance your closing costs or down payment or that require no down payment at all.
Good Luck!
Good Luck!
- Andrew Adams, "203K Specialist"
- Contributions:9349
Has any lender seen a title company do what Mike suggests. I can see no instance that a title company would waive title fees.
- Michael Emery, "MikeEmery"
- Contributions:7298
One option that is often offered with bank owned homes is if you use the same title company that the bank is using, they will cover the cost of your title insurance and possibly waive some other duplicative fees.
- Andrew Adams, "203K Specialist"
- Contributions:9349
This question comes up frequently and the way it gets answered always cracks me up.
The buyer always pays for closing costs and "fees" (not sure what additional fees you would be referring too). The question you really need to answer is what is the best way for the buyer to pay closing costs.
Closing costs are paid in 1 of 3 ways:
1. Out of Pocket
2. The buyer opts to pay a higher rate and the lender pays he upfront closing costs. (The buyer is paying the costs they are just doing it over the life of the loan)
3. Seller concession to cover closing costs. The buyer is still paying the closing costs..they are simply financing the costs into the loan. Higher loan amount.
The only other option is a combination of the above but at the end of teh day the buyer is always paying. Any other answer is nothing more than Spin!
- Cathy Izumo, "Cathy Izumo"
- Contributions:3
I just attended a seminar about REO sales and the bottom line is "their bottom line". If you submit a strong offer and ask for closing costs and fees to be included and it pencils out for them, they'll quite likely accept it. The biggest issue then would be what your lender will allow for closing costs and fees. Some lenders are very fussy about what they consider acceptable and often have limits on what they will allow. Check with your lender before writing the offer. Good luck!
- kristisar
- Contributions:110
Well both the buyer and seller will have closing costs. You can try to negotiate to have the bank pay for yours, but your offer should then be strong in other areas, meaning don't ask for 85% of list price + they pay closing. I can tell you plenty of people, myself included, offered above list with seller paid closing costs, resulting in a net of the same as list with buyer paid CC, and gotten denied. I would talk with an agent who can give you comps, maybe even worked with that bank before. They should be able to help you come up with a fair offer Good luck!
When buying a REO who usually pays the closing costs and fees?
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.