Without knowing your specifics, generally closing costs come in at around 3 percent of purchase price. But it could be higher if you purchased points to buy down the loan. Usually on the sellers closing costs form it says seller will pay UP to $5,500 or UP to 3 percent of closing costs - depending on the agent that wrote the document. So if there is any money left over that is unspent by closing, that money will revert back to the seller. So make sure you spend every dime of your closing costs.
Ask your agent to do a buyers closing cost worksheet.This is going to be approximate as the HUD1 is the final determining document for closing costs. You will also find out a day or two prior to closing what your costs will be when you receive the HUD1 statement from your lender.... more
By definition, market value is the established price a buyer is willing to pay a seller without duress. Everything else is someone else's opinion (appraiser, agent, etc.) of value and could vary greatly. In the end you should do independent research to determine the value of the house to you. For example, a buyer with seven kids would be willing to pay a premium for an eight bedroom house, but the couple with only one child, wouldn't see the value in that many bedrooms, and to them that house wouldn't be worth as much.
Keep in mind that if you are comparing the price of properties that were listed and sold by real estate agents, that you should deduct for the commission (take off 7% of the final sales price) to adjust for buying directly from the owner.
Coldwell Banker Burnet
licensed MN Real Estate Broker... more