This Weeks Caller Asked-"Do I Have to Pay the Closing Costs?"

Reblogger Peggy James
Real Estate Agent with Twins Selling Real Estate Team 0225018862

So many home buyers ask this question. I saw this blog post attached below by a local lender Markita Aldridge Woods of Westar Mortgage here in Lake Ridge Virginia.  She said home buyers are asking if they need to pay closing costs.The great news is, right now here in the Prince William County Virginia area sellers are still paying closing costs. 24 out of 203 closed sales in the Woodbridge, Lake Ridge Virginia area since December 1st, 2010, selles paid on average $6000 or more closing cost on behalf of home buyers!

Let me share a real situation and why home buyers really need to be careful though.

This is what happened to one of my listings in the past week. I called the seller and said we have two offers that just arrived.

Offer 1- FHA Buyers offer was far less than full price and they wanted in excess of $8000 in closing costs. Offer was rejected by seller

Offer 2- FHA Buyers offer was full price, however they requested over $8700 in closing cost assistance from the seller. The seller negotiated and continue to neogtotiate for one week. Buyer and Seller could not agree.

Offer 3 arrives- FHA Buyer with full price offer who asked for $6000 in closing costs. Buyer and Seller agreed in less than 24 hrs. Buyer wins the bid!

Another real life story. I just assisted a purchaser with the purchase of a townhouse in the Ridgeleigh Section of Lake Ridge overlooking the Occoquan.
I was able to negotiate a full three percent of closing costs on a short sale home.

If you need the help of a good local Buyers Agent call myself or Erick Blackwelder at 703-590-2252.

Original content by Markita Woods NMLS#190699 NMLS #190699

Do I Have to Pay the Closing Costs?

This post was inspired by an email from a first time buyer in Woodbridge, Virginia asking What are closing costs and do I have to pay them?

The answer is yes you as the buyer are responsible for the closing costs when buying a home. 

However, the seller of the home can agree to pay them on your behalf when properly negotiated in your Real Estate Contract.



FHA and VALoans allow for up to six percent seller help for closing costs. 

Here is a quick example:

The closing cost to purchase a $250,000 home in Woodbridge, Virginia is estimated to be $7,380.

If the seller agrees in the contract to pay a $7,380 seller credit then the buyer does not have to pay the closing costs because the seller is paying them on your behalf.

Many buyers believe that since we are in a so-called Buyer's Market, " The sellers should automatically pay their closing costs". The seller paying your closing costs is not a given (in any market), so make sure you are working with a Realtor with the experience and knowledge on negotiating a Win/Win Real Estate Contract.

Subscribe to my blog for my next post: "The Seller is Paying Closing Costs Can I Get Money Back At My Closing"...

 


If you need tailored mortgage solutions contact Markita Aldridge- Woods at (703) 497-3936 or via email.                                                                                                                                                                               

We offer FHA, VA, VHDA, USDA and Conventional financing in Woodbridge, Lake Ridge, Northern Virginia, Stafford, surrounding areas and Maryland.

WestStar Mortgage Logo NMLS #196099 Company ID #2925

Licensed by the Virginia State Corporation Commission and Maryland 

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Rainer
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Gregory Storm
www.LAHomePhotography.com - Los Angeles, CA
Real Estate Photographer

Hi Peggy,

Good topic.  I understand where you are trying to go with your 3 buyers example, but it doesn't really hold up as a great demonstration on closing costs.  To me it reads as though the home seller got tired, frustrated, and a bit wiser after the 2nd offer fell apart.  Not wanting to loose yet another buyer, they let go of their emotional reaction and decided to make a sound business decision and take the offer.

Let's face it. Average home sellers are pretty stupid.

Gregory


Agent Headshots | Real Estate Photography
www.lahomephotography.com

Jan 31, 2011 12:04 PM #1
Rainmaker
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Markita Woods NMLS#190699
WestStar Mortgage Inc NLMS#2925 - Woodbridge, VA
Queen of Mortgages - FHA, VA, Conventional, USDA

Peggy thanks for the reblog, as buyers need to know that sellers in todays market are willing to pay closing costs but it is not a given.

Jan 31, 2011 10:05 PM #2
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Rainmaker
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Peggy James

Lake Ridge Virginia Real Estate Specialist
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