Hello All. If a seller requests the buyer pay all closing costs, how does one determine how much the closing costs will be? Thanks in advance for responding.
ask the lender for a GFE.
Lenders are required to give you a GFE (good faith estimate) once they approve you and you decide to move forward with the loan. This will show there cost and interest rates. Of course its just an estimate so it can change.
Generally no one will know what the title co will charge in fees till its done, and the GFE will not be very accurate to that in my experience. You can contact the local title co doing the close and they can give you rough figures based on the sale price. it should really only take them a few minutes to tell you their cost in many areas.
General rule of thumb I have noticed is, closing cost vary from 3-5% of the sale price.
That all goes into the negotiations. I pay all the closing costs and the purchase prices has to adjust.