Buyer & Closing Costs

[Nate LaBlance]

Hi All! Looking for my first rental property investment, which will also be my first home purchase. Should I factor having to pay some of the closing costs as a buyer or does the seller always pay? Or a case by case basis

[Kelly Watkins]

Hi Nate, 

I would recommend you factor in closing costs just in case you find the perfect home and need to be competitive in making an offer.

 As you may know, the buyer and seller have separate closing costs. The seller is paying 1/2 of the title insurance, 1/2 of the closing fee (the amount charged by the title co. to do the closing), the real estate commission and some filing/recording fees. The buyers costs include the other 1/2 of the title insurance & closing fee, pre-paids which start your escrow account (assuming you are not paying cash), the fee to the lender, appraisal cost and recording/filing fees for the deed. 

For years in Wichita it has been very common for the seller to agree to pay all or part of the buyers costs but with todays very low inventory where houses are selling with multiple offers it will put you at a disadvantage if you are competing. Find a Realtor you trust to help you decide when you may be able to include your buyers costs and when its worth it to come in strong with a clean offer. Hope this helps & good luck!