| In these times when an increasing number of | | | | negotiations, you must treat the price offer and the |
| concessions from buyers are becoming the norm | | | | closing cost separately and aim for separate |
| rather than an exception, potential buyers must be | | | | concessions for both. This shall ensure that you are |
| properly prepared with the list of cost reduction | | | | able to explore all the best options in working out the |
| options that they must bring to the negotiation table. | | | | best possible deal under the present condition. |
| While we normally focus at reducing the price tag of | | | | One critical aspect of your research shall focus on |
| the real estate property that is on sale, there are | | | | the determination of which closing cost items are |
| other aspects that must also be covered by the | | | | specifically assumed by the buyer and the seller. An |
| buyers when going through the motions of offer and | | | | informed buyer will have to focus his efforts in |
| counter-offer phase of the buying process. One of | | | | getting concessions from the buyer in as far as the |
| the aspects that must be included in your agenda is | | | | closing cost items that are generally assumed by the |
| the closing cost. | | | | former are concerned. |
| Closing cost, or settlement cost, are ancillary fees | | | | Home buyers are normally responsible for insurance |
| that are associated with your mortgage loan. This | | | | premiums for homeowners, mortgage fees, taxes |
| cost shall include financing charges, title insurance, | | | | for ownership transfer, title insurance, inspection |
| taxes, points, cost of items that are escrowed or | | | | charges, attorney's service fees and escrow fees. On |
| prepaid and other ancillary charges. The closing cost | | | | the other hand, sellers normally assume real estate |
| normally ranges from 2% up to 7% of the value of | | | | commissions, fees for loan payoff, cash payments |
| the real estate property. | | | | for property repairs and a portion of the taxes for |
| When you are about to engage in a serious | | | | the transfer. As an informed home buyer, you must |
| negotiation with your seller, it is crucial that you do | | | | be able to get concession on the cost items that are |
| your homework and study all existing laws and | | | | normally assumed by buyers. |
| regulations as well as prevailing practice in your area | | | | When preparing for some serious negotiation with |
| pertaining to closing cost and other incidental charges. | | | | your seller, it is crucial that you have already done |
| You must be able to get your numbers right in as far | | | | your research and established your game plan in as |
| as these expense items are concerned as they can | | | | far as getting concessions on those ancillary |
| be more significant than the amount of price | | | | expenses are concerned. You must be able to |
| concession you are haggling with your seller. | | | | discern that you are really getting concessions from |
| You must bear in mind that this is the time where | | | | those closing cost items which are normally assumed |
| buyers dictate the tempo in the market. As such, | | | | by buyers as some sellers might bait you into an |
| they have the leverage in getting additional incentives | | | | agreement by offering you "incentives" by assuming |
| and entitlements beyond the usual freebies under | | | | those closing cost items which are normally his own |
| normal times. When planning for the terms of your | | | | responsibility. |