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Real Estate Tips
First Time Buyers >The Seller May Pay

The costs of buying a home may be daunting. For example, you may have finally saved enough for a down payment on your first home, with a little left over to buy the furniture you will need. Then you hear about having to pay closing costs you weren't anticipating, and this may seem like a real setback.

One way to cover such a shortage is to make the sellers an offer that calls for them to credit you for some of the closing costs. As a rule, the sellers may pay a maximum of 3 percent of the sales price if the buyer is putting five percent down. If the buyer is making a down payment of 10 percent or more, the seller can contribute up to 6 percent of the sales price to cover the buyer's closing costs. Some items, such as prepaid taxes and the first month's mortgage payment, must be paid by the buyers. Sellers may also contribute to paying the appraisal, points, title insurance, settlement attorney fees, state or local transfer taxes and similar items.

Keep in mind that if the credit is included in the price of the house, the appraiser will have to justify the amount, based on sales prices of similar homes in the neighborhood.

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Real Estate Trivia
Q 
In which 'Oil Sheikdom' of the Far East do the wealthy still choose to live in primitive houses on stilts?

A 
Brunei's oil wealth results in no income tax, free education and health services, and cheap housing loans for its average citizen.
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Lynn Garafola and Team Nest Builder, REALTOR®, real estate agent and broker for Sparta, Lake Mohawk and Randolph, New Jersey home listings, property and land for sale - NUMBER1EXPERT(tm)

Lynn Garafola and Team Nest Builder
RE/MAX Platinum Group

200 Woodport Road
Sparta, NJ 07871
973-222-3777
Fax: 973-726-5757
LynnGarafola@NUMBER1EXPERT.com

Lynn Garafola, GRI, CRS, CLHMS, is a seasoned real estate veteran who has successfully closed more than $125 million in transactions and won numerous industry awards and accolades. Lynn has enjoyed helping over 400 families make moves in and out of Northern New Jersey over her 15 year career. Lynn is known for being a tireless advocate for her clients. When you are looking to buy, she takes the time to explore who you are and what you want, helping you discover what you need, what you like and what fits your budget. And then gets you into that home. When its time to sell, you can count on her guidance on preparing your home for sale and pricing it right. And then she takes over and markets it aggressively to get it sold for you. Not only is she very knowledgeable about the housing market in New Jersey, she is very personable and professional and stays in touch after the sale. You can count on Lynn to take care of ALL of your real estate needs. Call or email Lynn@MyNestBuilder.com today for an appointment with your real estate needs.

CRS Equal Housing GRI REALTOR


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200 Woodport Road
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