It’s part of the expense.Sellers, what if you offered to pay a buyer’s closing costs, instead of lowering your price?
Interest rates are starting to increase, so even if the home price is low, the monthly payment may be too high for buyers. However, if the seller is willing to pay some of the profit towards the buyer’s points, the monthly payment may be within the buyer’s reach, making your home more of a deal than the house down the street.
Many buyers have told me they are waiting to see how low prices will go before they buy. However, it was reported at the recent Realtors Association of Maui meeting that as interest rates climb 1 percent, buyers lose 10 percent of their buying power. Be aware of rising interest rates, because now may be the time to buy.
When buying or selling, talk to your lender about the closing costs and what it would mean if the seller paid a portion of them. Closing costs are different for each purchase and sale; they consist of escrow fees, title insurance to protect your interest in the property, appraisal costs, surveys, termite and building inspections, points (if any), lender fees, real estate commissions, conveyance tax and more. All of these fees will be itemized on a settlement statement that both the buyer and the seller will receive from the escrow company. Review the settlement statement for accuracy. The settlement statement will show any credit or debits regarding rent, deposits, taxes, liens, insurance, reimbursements, etc. It is vital to review the settlement statement and if you have any questions, clarify them with the escrow officer, your agent or lender, prior to closing the transaction. Whether you use a realtor for your purchase or sale, closing costs are part of the expense.
Chris Bakeman, broker, has been a realtor since 1997, selling in both buyers’ and sellers’ markets. Now with her own company, she offers an affordable way to sell your home starting as low as $4,000 full service on the MLS. Contact Chris Bakeman Realty LLC at 283-6126 or www.chrisbakeman.com.