When buying real estate in Charlotte NC, closing costs can either be paid by you or with a closing cost contribution from the seller.
Seller paid closing costs are a concession from the seller and aren’t paid directly to the buyer but are simply used at closing (and detailed on the settlement statement) to pay for a portion or all of the buyer’s closing costs. Since they are a sales concession, seller paid closing costs reduce the net sales price. For example a $100,000 purchase price with $3,000 seller paid closing costs is actually a net sales price of $97,000.
To review: typical Charlotte NC real estate closing costs.
For sellers to give buyers a closing cost concession it must be negotiated and detailed in the purchase contract. It’s also important that your lender is aware of any seller paid closing costs since sometimes there are limits as to how much a lender will allow in seller concessions – good info to know before we enter negotiations!
Whether a seller is willing to contribute to buyer closing costs, that depends. For a motivated seller it may be more likely they’ll consider giving a closing cost concession (true length of time on the market, urgency of the sellers need to move).
Whether or not sellers give a closing cost concession and for what amount will depend on the offer/purchase terms and what both buyer and seller agree upon. Is it possible for sellers to pay for some/all of buyer closing costs? Sure. Will it always happen that way? No, but it’s an additional point of negotiation when buying real estate in Charlotte NC.
Just one other important note about seller closing cost concessions – they cannot be used for a buyer’s down payment, only toward the charges a buyer incurs as a cost of purchasing the property. Down payment on real estate in Charlotte NC is not the same as closing costs.
Related Articles: Closing Costs When Buying Real Estate In Charlotte NC
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