Who pays Seller or buyer? And what does it consist of ?
Been negotiating with an Owner, no agent involved & last round of negotiations he dropped price from $95,000 to $90,000 and said that I ( buyer ) pay closing.
Depends on your title company’s charges to do the closing.
What has your title company quoted you?
Typically buyer and seller pay their respective shares.
But you should put your business hat and evaluate if it’s worth tainting your relationship with the seller over the cost.
If it’s a good deal and works for you, then closing costs are negligent and not really an item that changes a great deal to a bad deal.
So it depends.
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Haven’t had any quotes as of yet, park is land only, no units.
Any thoughts on what closing cost could be on a 9 space no units property?
UPnAWAY,
If you are getting title insurance (please tell me you ARE getting title insurance), then you should simply be able to ask these questions to a local title company. Since the title policy protects you (and the lender if there is one) then you should be able to chose the title company so just call one up and say you are considering the purchase of a piece of property and ask them what the closing costs would be for title insurance policies (buyer and lender) from them and all of their fees, (Doc prep, Alta, etc. these vary in different areas and at different title companies) then you can ask who typically pays what in your area but, as was pointed out by Gonzalo, who pays what is not the most important factor if the numbers work for you. As a rule of thumb, the closing costs on a simple piece of land without a mortgage would be less than the 5K the seller dropped. Other numbers you will need (these can vary from area to area) are for survey, government charges (called documentary stamps on deed in Florida and, if applicable mortgage), intangible tax, nominal cost to record documents at clerk’s office and any other costs the title company says are customary in your area.
Don’t forget any things you might want to get such as inspections (Phase I), any due diligence inspections of sewer/water/electrical.
The title insurance company will be making money from you for doing the closing (here they keep 2/3’s of the title policy charge), so don’t be afraid to ask them to answer these questions. It’s part of their job.
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I recently closed on a park where i paid all the closing costs. I felt I got a good price for the park even with those costs; and the contracted price was low, so those costs were not that much anyways. My biggest closing cost was the survey - which was well worth it as we discovered an error in a previous survey and were able to correct it in escrow.