Hi, I just sent out my first mailer and once I secure a property in these next few weeks I'm going to go through a title company on my first purchase to learn the process they go through.
But for when I end up hopefully selling the property, does the buyer typically pay for most/all of the closing costs or title fees associated with buying the property? Any help would be greatly appreciated! Thank you
When you're buying from a motivated seller in a distressed situation, this is usually how offers are structured, in return for the seller accepting a deeply discounted offer price.
However, in most "normal" real estate transactions, the closing costs can be split and the property taxes and insurance can be prorated, so each party pays for their appropriate share... but again, buying from a motivated seller isn't a normal real estate transaction, so there isn't a hard and fast rule about who has to pay for what, but most of the time, the buyer will assume this responsibility. It's part of what a motivated seller will sell for cheap, because the buyer is making it fast and easy for them.
What Seth said!
Actually I will add, on the sell side with land it just depends on the price point and how you structure the sale.. You are in control as a seller. On a cheaper property you might sell it and simply record the deed directly into the buyers name, and if they want title insurance, make them pay for the extra cost of closing with title.
On a bigger purchase property you could split the cost or make them pay, or offer to cover it and pad it in to you sales price.
With houses, this can also be negotiated. I have sold flips where the first time home buyers wanted me to cover closing cost..
Thank you Seth and Jason! This is what I was thinking in regards to these fees being somewhat of a situational basis when being on the selling side of the transaction. I appreciate the detailed response from both of yall.
@dpatel hi Man! I just posted the exact same question on the Fb group…few answer there too. Give it a look:wink:
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