Before you look at the details of paying a buyer`s completion fee, you must first understand what those fees are. This is a set of fees charged to the buyer when buying a property. Fees include real estate valuation, title search, title insurance, credit origin, lawyers` bills and other costs related to the transfer of ownership of the dwelling and the taking of a mortgage. It is important to note that these fees, as well as the buyer`s responsibility to pay them, can vary considerably depending on the location. For example, if you live in a state with high property taxes, your snack deposit may be significantly higher than average. If you want an estimate of your situation, Bank of America will provide a useful calculator that will allow you to estimate your completion costs based on location, down payment and type of credit. Many other lenders will offer similar instruments. This can be a win-win scenario for buyers and sellers. By increasing the purchase price by $5,000, the seller can still reach his net goal of $200,000. We spoke with REALTOR® and Certified Negotiation Expert (CNE) Ina Sajovich about the best way to ask and get sellers to accept your concession application, to help with completion costs. Sajovich said that a REALTOR expert® or agent by your side can be really helpful because they know the market and what is common.
Take, for example, the scenario we talked about earlier, in which a buyer has to pay a higher price to receive his offer. For home buyers who are struggling to come up with their down payment, moving and acquisition costs, this is a great way to ask the seller to cover these expenses. Acquisition costs for homebuyers are not cheap — usually between 2% and 5% of the sale price. In other words, if you buy a $200,000 home, you can count on a closing cost of between $4,000 and $10,000. In addition, sellers often pay for the buyer`s title insurance, which is an inexpensive supplement to the lender`s policy. You may also have to pay the buyer for property taxes if the taxes have not already been paid for the year. Keep in mind that if the taxes have already been paid, the buyer will owe the seller a refund of the portion of the taxable year after closing, but if they have not been paid, the seller will pay the buyer for the period prior to the conclusion. Use the same procedure to determine who owes to whom for the HOA fee. These are mortgages that weigh on the purchase costs in the mortgage, much like a buyer might try to do through a seller`s concession. Do it this way, but, you have to pay more for your mortgage, because you lend more. Ask your lender if they don`t have an option to purchase, but remember that you simply defer the fees – and pay interest on those fees – and you don`t eliminate them. Closing fees can be quite expensive and look like a heavy burden, especially for first-time buyers who don`t have much money for a down payment.
If the house is not valued for the necessary amount, further negotiations between the buyer and the seller may be necessary. This scenario allows the seller to consider a $205,000 offer that contributes $5,000 to the buyer`s transaction costs.