Help! Seller want me to pay his closing cost but doesn't reveal how much

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rikkus256_IHB

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Hello:

I am trying to offer a condo in at around $220k. The property is now owned by Fannie Mae. My agent told me that the seller has note that buyer will be responsible for seller's closing cost. I ask my agent to find out which part of the closing cost but he just kept telling me that should only be around $1,500 total. However I am worry if it ends up including both side brokers commissions and seller's part of property tax, which would be an additional $16,000.



So my questions is: If after I submit my offer, and finds out I really need to pay the $16,000, can I withdraw my offer OR lower my offer price without losing the earnest money? I'm afraid seller will use the "I already told you that you need to pay all closing cost" excuse and hold my earnest money.



Thanks!
 
[quote author="rikkus256" date=1254962499]Hello:

I am trying to offer a condo in at around $220k. The property is now owned by Fannie Mae. My agent told me that the seller has note that buyer will be responsible for seller's closing cost. I ask my agent to find out which part of the closing cost but he just kept telling me that should only be around $1,500 total. However I am worry if it ends up including both side brokers commissions and seller's part of property tax, which would be an additional $16,000.



So my questions is: If after I submit my offer, and finds out I really need to pay the $16,000, can I withdraw my offer OR lower my offer price without losing the earnest money? I'm afraid seller will use the "I already told you that you need to pay all closing cost" excuse and hold my earnest money.



Thanks!</blockquote>


Your agent should be the one answering this question for you.



But yes, you can opt for several options:

1. Make your offer and put a cap on the credit to seller.

2. Wait until you see your HUD-1 (estimated closing costs) and see if it is worth the price to you. If not, you can withdraw/cancel your offer any time for any reason within the contingency period.

3. Make the offer with no credit to seller. Just because someone asks for it, doesn't mean you have to give it up.



Good luck,

-IrvineRealtor
 
[quote author="IrvineRealtor" date=1254962771][quote author="rikkus256" date=1254962499]Hello:

I am trying to offer a condo in at around $220k. The property is now owned by Fannie Mae. My agent told me that the seller has note that buyer will be responsible for seller's closing cost. I ask my agent to find out which part of the closing cost but he just kept telling me that should only be around $1,500 total. However I am worry if it ends up including both side brokers commissions and seller's part of property tax, which would be an additional $16,000.



So my questions is: If after I submit my offer, and finds out I really need to pay the $16,000, can I withdraw my offer OR lower my offer price without losing the earnest money? I'm afraid seller will use the "I already told you that you need to pay all closing cost" excuse and hold my earnest money.



Thanks!</blockquote>


Your agent should be the one answering this question for you.



But yes, you can opt for several options:

1. Make your offer and put a cap on the credit to seller.

2. Wait until you see your HUD-1 (estimated closing costs) and see if it is worth the price to you. If not, you can withdraw/cancel your offer any time for any reason within the contingency period.

3. Make the offer with no credit to seller. Just because someone asks for it, doesn't mean you have to give it up.



Good luck,

-IrvineRealtor</blockquote>


This is why you should be everyone's realtor. Ok, not everyone, you could let some business to USC.
 
[quote author="IrvineRealtor" date=1254962771]

Your agent should be the one answering this question for you.



But yes, you can opt for several options:

1. Make your offer and put a cap on the credit to seller.

2. Wait until you see your HUD-1 (estimated closing costs) and see if it is worth the price to you. If not, you can withdraw/cancel your offer any time for any reason within the contingency period.

3. Make the offer with no credit to seller. Just because someone asks for it, doesn't mean you have to give it up.



Good luck,

-IrvineRealtor</blockquote>
Thanks for the response. I would like to hear from other people's though other than my agent.

I have made my offer without mentioning about seller's closing cost.

I'll see what happens!

Thanks again.
 
[quote author="rikkus256" date=1255064212]Thanks for the response. I would like to hear from other people's though other than my agent.</blockquote>


His point was that if your agent was worth his commission, you wouldn't have to be asking the question to this forum in the first place. Scott is professionally diplomatic and won't come right out and say that, but I will. :coolsmirk:
 
Curious how many post here and on Redfin...



Your lender will likely not allow you to pay the sellers closing costs. Please check with your lender about this as some companies policies differ from others but my guess is that your bank with "ix'nay" the payment of seller costs to close.



Are you paying the sellers costs or the banks costs BTW? In both cases it's not likely to fly with your purchase money lender but thought I'd ask.



My .02c



Soylent Green Is People.
 
[quote author="Soylent Green Is People" date=1255067999]Curious how many post here and on Redfin...</blockquote>He posted the same question on FatWallet too
 
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