Who usually pays the closing cost the buyer or the seller ? I am working on a deal and the seller wants the buyer to pay all of the closing cost. This will add an additional 10k to the offer price…If I am unable to find a buyer is there a way out of the deal ? The property is being sold “as is”…I think I made a mistake on this.
The specifics of the deal and your obligations should be spelled out in the paperwork.
If you’re not buying through an agent, I would suggest that next time you go through and show the seller what he would net using an agent.
You start with the seller’s opinion of value and work backwards.
You could say, this is what I would net at your price, using a real estate agent. And the proceed to show the net equity after all expenses.
I like to have the seller actually use my calculator to arrive at the net equity.
This way, the seller now takes into account that these costs are real, not imaginary.
However, my experience also tells me that fsbos that have not tried to sell through an agent first, and/or experienced a failed escrow, and/or multiple listing attempts, don’t often appreciate what I’m showing them.
They believe they have options, even when they see the numbers.
So, attempting to close on profitable deals with option-toting FSBOs is like trying to have sex with a nun.
Sure, you might get a date, but everything kind of falls apart after that.
If you’ve really got a seller wanting you to pay closing costs, and your price doesn’t really reflect a deal, it’s time to tell the nun to take a hike.
Hope that helps.
P.S. For me it’s partly about sifting out the option-weighers, and partly about how the offer is pitched, and partly about how prepared I am to close.
Sifting out the nuns is my first priority.
Then it’s about selling the concept of having a baby.
Then it’s about actually making the baby happen.
However, never, ever attempt to describe the ‘baby-making’ process, until you’ve sold the concept of the baby first.
:beer
Javipa you are correct I think it is time to walk away on this one…the seller will not allow an inspection so I don’t know if I have an out of the contract if I am unable to locate a buyer ? Best to walk away then to get stuck with a headache property…
No inspections? Then, certainly no deal.
Onward!
No inspections?! I would put that as a bell and whistle signal as a bad deal. In my opinion, that is worse than trying to get the seller to pay the closing costs. Very few buyers are willing to buy a home site unseen and even less are willing to buy a home where the seller refuses to allow a home inspection.
If I were you, I would get out of the deal as quickly and painlessly as possible.