Ann Arbor Home Seller Pays Closing Costs
Often Ann Arbor Home Sellers pay part of the Buyer’s closing costs or prepaid for their loan. I’d like to start with an example.
If a house costs $300,000 and the seller pays $9,000 of the closing costs, the seller actually nets $291,000. This is done with the blessing of the lender and is disclosed on the HUD statement. The seller is paying the closing costs, and this is a legal way for the buyer to roll them into the loan.
It is important to note that seller paying concessions are disclosed on the Ann Arbor Multiple Listing Service (MLS). So when the home in our example above is used to determine value for an appraisal on a nearby home, it would be given a sold value of $300,000 and noted concession of $9,000. Appraisers and REALTORS have this information and can then calculate that $291,000 is the actual value of what the buyer paid for the property.
Before accepting an offer with these terms, it is important to assess the appraisal value of your Ann Arbor property. If the property does not appraise for the full $300,000, then the buyer’s full loan will be denied. Working with the appraiser becomes important and knowing what comparables support the property value is imperative. After 19 years in the business, local lender knowledge is critical too. Knowing reputable lenders and their track record is key. This is the human element of negotiating that supports my value to Sellers as an Accredited Sellers Representative.
Mary’s buyer for her Ann Arbor home had closing costs and she was pleased with her outcome:
It is very common for buyers to have sellers pay closing costs. The main reason is because buyers are often strapped for cash due to the cost of moving, and of course down payment. It is a Keller Williams philosophy and mine to negotiate a win-win scenario. Packaging a deal that works for both parties is in all parties’ best interest.
Our buyers agents work closely with lenders before writing offers to know the allowable amounts to negotiate. Please visit our comprehensive website if you are looking for Ann Arbor real estate information.
To give you an advantage, be sure to contact us or drop by our next Ann Arbor Home Buyer seminar Feb 10th at 6:30 pm.
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Kathy Toth & Team: Ann Arbor Area Real Estate Experts
Keller Williams Realty
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