My husband and I are planning on selling our old house. I’ve never sold a house before but this situation seems just perfect.
A man that my husband has worked with for eight years has offered to buy our house. He has arranged his pre-approval and has an agent.
We are offering the house for about $12K less than websites show the valuation because it is an “as is” purchase. We are not willing to put any money into that house and pretty much know the value of the essential repairs so this as-is price reflects that. The buyer is very aware - as in receiving a document and having signed the acknowledgment. We have an inspection this Friday. Here’s where I come into my queries.
I think I’m responsible for paying for the inspection, right? Am I responsible for the appraisal as well? We are not hiring an agent and will use the buyers’ to draw up the docs. He’s represented a fee of 2.5%, I believe. With research on the web this seems normal, but is that PLUS the 3% that the buyer’s agent would receive as well?
Is it customary for the seller to pay towards the closing costs? Is this discretionary or a just like a gift? Also, will the fees and such come out after I get the $$ from the mortgage or are these up-front payments? I don’t happen to have $15000 liquid laying around.
If anyone is aware of any good websites that aren’t hawking their wares, I’d appreciate it. I’ve already been to How Stuff Works, but it doesn’t really explain the personal intracacies and allowances.
The buyer almost always pays for the appraisal and the home inspection (as those are at his discretion - a cash buyer could skip both if they wanted). As far as the fees, you have to talk to the agent himself to determine that. For closing costs, you’ll need to provide your state as who customarily covers what closing cost varies by state. Generally it isn’t covered by law though, just custom, and as such is negotiable with your buyer and agent.
Edit to add: You deal with all payments at closing, generally - you will only ever see the net money after closing costs, property taxes, etc are taken out of the buyer’s payment.
All this stuff is negotiable.
Usually the buyer pays for the inspection(s) and appraisal.
When I bought my house, at that time and place, closing costs were paid for by the buyer. Now, I think it is more common for the seller to pay some to entice buyers, but again is all part of negotiating the total package.
Legally, you are not obligated to pay the buyer’s agent anything. He and the buyer have a contract for the agent to receive a fee for his services. You are not party to that unless/until you sign a purchase agreement stating that you will pay the fee. Once again, this is negotiable. You could agree to pay all, part or none of it.
Any closing costs you offer to pay, etc, are generally handled by subtracting them from the proceeds of the sale provided that you are not upside-down on your loan.
Lastly, GET A LAWYER. Do not rely on the buyer’s agent to treat you fairly.