Dear FWF:
I am trying to offer a condo in Southern California at around $220k. The property is now owned by Fannie Mae. My agent told me that the seller has note that buyer will be responsible for seller's closing cost. I ask my agent to find out which part of the closing cost but he just kept telling me that should only be around $1,500 total. However I am worry if it ends up including both side brokers commissions and seller's part of property tax, which would be an additional $16,000.

So my questions is: If after I submit my offer, and finds out I really need to pay the $16,000, can I withdraw my offer without losing the earnest money? I'm afraid seller will use the "I already told you that you need to pay all closing cost" excuse and hold my earnest money.

Thanks!

Ask your agent to break out that $1500

Like Carlry said, just put that language into your purchase contract "Buyer agrees to pay seller's closing costs up to $1500". Done and done.

I'm not an expert on bank owned homes, but this is relitively common. I don't think it inlcudes RE commission, but genererally will include things like transfer taxes. I would ask the agent to find out more detail

putting a max in the contract, done and done.... isn't going to get the deal done, b/c I doubt the bank isn't going to sign that contract. Find out what specifically you're on the hook for and factor that into your offer.

Or.....the stipulation could be that if the CC is more than $1500 and the seller is not willing to accept the $1500 amount, the buyer may either pay for the entire CC or choose to withdraw the offer and be entitled to a full refund of the earnest money.

Unless your offer includes a mention of paying the closing costs you are not agreeing to do so. So they might reject any offer without closing costs but that is up to them. I would not offer + closing costs as that can be any amount almost at most I would offer + $X towards closing costs

I would be sure to include an "up to $XXXX" for closing costs in any offer. I bought my current house with an offer that said "seller will pay buyers closing costs." They sellers paid $2000 in mortgage points plus $2500 in other closing costs. They weren't happy with their agent to say the least. Plus I got to deduct the points even though I didn't pay them! If only all my financial transactions worked out that well.

Pay sellers closing costs? hmmm' I live in California and it almost always the buyer is asking to have his closing costs paid for or part of; I am selling now my $200,000 home and my closing costs including realors fee is $16000. Guess it depends on your definition of closing costs. But $1500 seems sooooooooooo low

carlry said:Agreed - just have your offer state that you are willing to contribute up to $1500 (or whatever you are willing to contribute) toward seller's closing costs.I'm afraid that would make my offer less desirable. But I don't know, mine is an all cash offer... hmm hard to decide..

cughre said:If you want, accept the offer but have it in writing that your agent will pick up (out of his commission) anything beyond the $1,500 in closing costs incurred by the seller.haha I joked about that to my agent and he just kept dodging it. He wanted me to trust "his experience". But he refused to put anything in writing. And that's what worries me.