Closing cost are the fees assocaited with the closing of the mortgage and unlike most people mistakingly think, they are the sole responsibility of the buyer, and not the seller’s responsibility. This misconception stems from the fact that as part of the negotiation of the deal, the seller pays for the closing cost. Indeed, more than 75% of the transactions last year had the closing costs paid by the sellers (in various %).
Basically, the closing costs are a cash amount, that together with the down payment, the buyer needs to “bring to the table” Often, an offer on a house will include the request to cover (partially or fully) the closing costs. If the seller agrees to this concession it means less cash for him, as this will come out of his net amount, and for the buyer it means – less cash to bring to the transaction.
If you have the cash, my advice would be to pay for the closing costs yourself, as it means that you can give a “clean offer”. This is of great importance in today’s market, which is becoming more and more seller’s market and you and your offer may be competing with other buyers & offers.
Need more info? Don’t hesitate to contact me for a free consultation! I’m always here to help!
Ayelet Gilad 