Goldie Sommer is an attorney and a licensed real estate agent, which means that she understands real estate on a deep level.
Most real estate contracts are associated with closing costs such as the tax to record the deed or note, title insurance, appraisals, mortgage closing fees, and so on. Start with finding out about the legal requirements in your state. Next, find out if there are customs in your area as to how closing costs are divided between the seller and the buyer. The buyer is often required to pay a lot of the fees, but they are negotiable and can add up to a substantial amount.
Just as a buyer can ask for a credit associated with necessary future repairs of the property, the buyer can also inquire about a credit towards the closing costs of a new mortgage.
Your lender will give you a Good Faith Estimate as to your closing costs and your attorney should go over them with you. Goldie Sommer reviews all fees that the lender charges with her clients.
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Goldie Sommer has been helping her clients buy and sell homes in New Jersey for several decades.
When you buy commercial real estate, you are usually dealing with investors who are likely to be experienced negotiators. They probably also have their sets of parameters that make deals worthy. If a deal isn’t of interest to them, they can pass or wait patiently until the conditions of the deal change and you reduce the price. This is now how things work with buying and selling houses. Instead of very experienced negotiators, you will be typically dealing with homeowners motivated to sell their homes quickly. If a homeowner has plenty of time, he or she may wait for a full-price offer. However, you will also meet people that want to sell in a hurry, which will usually lead to a discount in price. The lesson here is also that you never want to be in a position when you need to sell a house in a hurry. Also, if you are selling a home, do your best to sell it to the people that are buying it to live in it. You want to find people that are looking for a home for themselves and really like your property because this is the scenario in which buyers will most likely be willing to pay the full asking price.
Finally, when you are selling a single-family home to a buyer, the buyer will probably be able to get a loan for nearly full purchase price. FHA loans can fund up to 96 1/2 % of the purchase price in today’s market.
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This is not how things work with commercial real estate. Because of the increased risks, banks usually finance up to sixty or seventy percent of the asking price. They want to see buyers invest their own money. This means that a deal may fall through because the buyer is not able to get sufficient financing, which is something Goldie Sommer saw happen many times during her career.