Seller, buyer or split? How negotiable is it and what is the convention?
(edited for typo)
Vargha,
The convention is whatever you and your counterpart decide. Costs that have to do with the mortgage are usually paid for by the buyer since it is his mortgage that is causing the costs to be generated. Costs associated with paying off the current mortgage are usually paid for by the seller because they are generated because of the sellers mortgage. That being said, everything is negotiable. If I am getting a good deal when I buy a property, I may pay all the closing costs. If I am getting a good deal when I sell, then I may pay all the closing costs. If the seller is getting very little for their equity, then they may not have the funds to close. Personally I like to buy when the seller walks away with little more than and anchor off their back. (Thats when they are really motivated). On the other hand, when I sell, I want to walk away with more than I would have if I kept the property, otherwise there is no motivation to sell. The object is to keep as much in your pocket as you can.
Wilson
And realtor commissions – negotiable as well?
Seller has signed a contract with the Realtor for the commission. The only way that would be negotiable is if the buyer offered to pay part of it. I would not think they would be foolish enough to do that, but anything is possible.
Wilson
Wilson – thank you very much for all of your help.
Great Advice Wilson have never heard it so simply put! and true!