Some costs are clearly the responsibility of the seller. For example, the seller typically pays the total real estate commission; this is a closing cost to the seller.The amount is deducted from the proceeds of the sale, and the closing agent writes a check to the listing and selling real estate companies.

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The seller can pay, an agent can pay, the lender can pay but the borrower also has one more way to pay non-allowable closing costs. Recall that an origination fee is an allowable charge.

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Sometimes the buyer will have written into the contract that the seller will pay the buyer’s closing costs up to a certain percentage or amount.

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 · The offer will include a price higher than the seller’s asking price to cover the closing costs. If the buyer’s lender does not appraise the value to that extent, the deal can fall apart. In some cases, though, this works if the seller accepts the offer and crafty real estate agents can make it.

Those costs must be paid by someone and often the buyer asks you, the seller to pay for them. VA loans do allow for sellers to pay up to 4.00 percent of the sales price of the home toward buyer’s closing costs. As the seller, you’re certainly not obligated to pay any fees whatsoever and it’s up to you to say “yes” or “no.”

 · If the seller agrees to pay $9,000 of the buyer’s closing costs but the buyer only need $6000 the buyer looses out on $3,000 that could have been used to negotiate a reduction in the purchase price. So always know your closing costs in advance of making an offer if you are going to ask the seller to pay your closing costs.

Syracuse, N.Y. – In recent weeks, Onondaga County officials and state lawmakers have proposed increasing a tax that property sellers currently pay. It’s a change that could drive up closing costs for.

The seller is allowed to pay all of the veteran’s closing costs, up to 4% of the home price. So, it is possible to avoid paying anything out of pocket to buy a home. Tip: If you have little or no funds available for closing cost, let your real estate agent know that you are purchasing your home with a VA loan.

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