Who typically pays for closing costs in Utah.

Question

While I know it depends on what is negotiated, who typically pays the buyers closing cost in Utah? My lender told me that he sees upwards of 90% of sales in Utah where the seller pays nearly all (under $300K home sale) or a percentage when the home is above $300K (~2% of the home sale). Agents out there is this an accurate assessment in Utah (Idaho or Wyoming likely the same)?

Mike Staheli · Answer

I'm probably a little late here but normal timelines are 10-14 days for due diligence and 24-28 days for appraisal/financing. No experienced agent would ask you to have a finance deadline at 2 weeks unless it's a unusual situation. Most appraisals take about 2 weeks anyways and normally you wouldn't order it until the inspection is resolved. Also, depending on the situation, the seller normally pays closing costs. I am an agent here in St George if you need some help

Rebecca Belnap · Answer

A good lender at a bank that self funds can get their part done in 7 business days and have you clear to close very quickly, especially if you get approved in advance. The appraiser is the tricky part. They can also be 3 days or less if you have a good one who isn't busy. Can you count on that on a regular basis when the market is moving fast? No. That is why Realtors always ask for 30 to 45 days to close just to be safe. The owners sound like they are over extended since they both are and aren't using the brother in law as a Realtor. He sounds like a jerk to try to intimidate you by showing that he sees you as inexperienced. But that is the hand you are being dealt right now, work with the seller on his terms, counter with your own, or lose the deal. Hope it works out.

Rebecca Belnap · Answer

@Joel Brown Your sellers are letting you know that they are the ones who are painted into a corner, and not by you. This is the way sellers act when they have payments that they can't afford and are acting out of fear. They want someone to make the payment for the next month since it is hurting them personally to not have it rented or sold. When fear and emotions get involved it often stops going the way it "should go".I have had a few deals go this direction and I just had to face the fact that I may lose my earnest money on this one. Maybe if you do a counter offer that you get more time but will accept a time clause and they can keep marketing it. Then if they do get another offer, you are still in first position. It could make them feel more safe and that is what you are dealing with right now.

Rebecca Belnap · Answer

@Joel Brown 2 weeks isn't impossible, just very quick. Also, it is only the appraisal which should be the issue since it would be smart to be pre-approved before you put in offers. If you are looking for an out so you don't have to buy the property that should be tied to the deadline for inspections and the sellers disclosures. 2 weeks is short notice if you don't have an inspector that you have on speed dial, but it isn't too bad.Yes, sellers almost always pay closing costs, but they often raise the price to cover them so the net affect is that you pay them. It should always be in your first offer to the seller, since they are usually expecting it. If you come in now with counter offers, they are more likely to ask that you raise the price to cover it since they can see with your first offer that you were willing to pay them.

Anthony Dooley · Answer

It is typical everywhere that I have lived in the last 25 years. It makes it easier for the buyer to close with little or no cash, since their loan does not include closing costs. VA, FHA, and USDA loans are attractive because they are 97-100% loans. These borrowers are probably not sitting on much cash. If a buyer offers $200K and they want you to pay $6000 in closing costs, simply counter their offer with $206K and agree to pay $6000 in closing costs. This works as long as the property will appraise for $206K.

Sam Newell · Answer

look up my buddy Brian Burnett, he's one of the top agents in St George and sells over 100 homes a year

Joel Brown · Answer

Sam Newell Rebecca Belnap I talked with the owners Brother in law who is a realtor (although the home is for sale by owner). He views me as an inexperience buyer, and claims that any good lender should get the appraisal in 2 weeks and can guaranty that I get the loan and I could back out before the closing date if I really wanted to. He also claims that the Saint George market had appreciated 11% in the last 12 months. I asked to see the REPC from the purchase last year since their closing was almost exactly 365 days from our projected closing date and I'm certain that they had more than 2 weeks to appraisal and finance. I'm sure their contract gave them 5 or 6 weeks while trying to limit mine to 2 weeks.

Sam Newell · Answer

Joel Brown I always get sellers to pay closing costs for my buyers but rarely have my sellers pay closing costs unless they're added on top of the purchase price. 2 weeks is unreasonable in my opinion and I wouldn't accept it, your lender needs time to do the loan and most appraisers are very booked out right now. Accepting a two week financing/appraisal condition would not be an option for me. Taking their home off the market is a normal part of the process and 4 weeks isn't forever. Besides, the market is going up

Joel Brown · Answer

@Rebecca Belnap my offer had a doable date for 24b and 24c on the REPC. The seller countered with a shortened date "so they did not have it off the market" and then if I failed they lost the prime time to sell it. I want it I just think they are painting me into a corner where I have no out if issues are found. That's not fair and not how a real estate deal should go. Thanks.

Joel Brown · Answer

I have an offer on a house (I didn't get any closing concessions, but would like to counter offer) Unfortunately the seller also is wanting the due diligence and appraisal/financing deadline to be in 2 weeks which is impossible unless I am a cash buyer. I am wondering what the norm is to help us reach a compromise (If I can get a reasonable time frame in the appraisal/financing window. Unfortunately it would make loosing my earnest money a real possibility if anything is off as I would be past time to get out of the contract even if it was caused by the home or sellers issue!