Reasonable Closing Costs
In a buyer’s market, you often find sellers lowering a price in order to get the deal closed. Nonetheless, potential buyers still require more concessions at closing. As a result, sellers continue to lower their price beyond what they originally intended.
What are the requirements of sellers at closing?
Generally, sellers play 1.5% of the purchase price at closing plus an additional 3% of broker’s fees. A full-service broker’s fee is even more, coming in at around 6%.
Costs Incurred by a Seller:
- A Grantor’s tax. Grantor’s tax varies state by state. Usually, it is a dollar amount based on an assessed value. For example $1 per every $1,000.
- Homeowners Association Fees
- Real Estate Taxes (prorated)
- Utility, water and sanitation
- Inspection costs
In a buyer’s market, you may see buyers requesting assistance with their own closing costs. In addition you might see a request for a decorator’s allowance. These requests are included in the official offer, but more addendums. Sellers are not required to accept them. Reasonable accommodation is key here.
It is recommended to purchase a one-year home warranty for up $1,000 to ensure that if something breaks it is protected.