Effect on
Changes to Sales Price |
Effect on Seller Proceeds |
Effect on Buyer Cost of Home |
| Every $1,000 change in the sales price will affect your
proceeds by approx. $922.00. (Assumes 7% Realtors Commission) This is because
most of a sellers closing costs are fixed amounts. Generally, the only
variable costs are the Rate of Commission, Title Insurance costs and County Transfer
taxes. |
Every $1,000 change in sales price has some cost to the
buyer. Consider, At 7.00% for a 30 Year loan, a $1,000 change in their
loan amounts to $6.65 more per month and $2,395 over the life of the loan. The buyer
could use cash in the bank to make up this difference, however they will need to assign an
additional cost above the $1,000 to cover lost interest income. |
| Contract Dates
How soon or quickly the offer is received or closes should be looked at when
considering an offer. Every month the property remains on the market has cost.
The cost could be your mortgage payment, property taxes or investment income
you could receive on the sales proceeds. Costs could also be the cost of a bridge
loan for a new purchase you are considering. Sometimes an Early offer is the
best offer considering all factors. |
| Sales Concessions
As stated above Sales or Special Financing Concessions can affect the sales price of your
home. The "Net Offer" line is the number you should look
at when looking at a contract that asks for your assistance. Look at this number as
a price the buyer would have offered you if they had not asked your for financing
assistance. Accepting an offer with Sales concessions can be a WIN/WIN for
Buyers and Sellers provided the concessions are reasonable for current market conditions
and the ranges of sales prices appraisers could use as comparable sales. |
Automatic Title
Insurance Calculations based upon 5.75 Per 1,000 up to $150,000 then 4.50
per 1,000 up to $250,000 then 3.50 Per 1,000 up to $500,000 then 2.75 per 1,000 above that
With a Min charge of 350.00 Title Insurance Cost assumed to be Split 50/50 between Buyer
and Seller. |
Final Words
If you are looking for a new mortgage, please contact me.
The total package that I can offer you will normally be better than you will find.
Total Package to me it the BEST program to meet your needs as a buyer, with
closing costs and loan fees equal or better than other lenders. |
