Buying and selling Scottsdale, Arizona Real Estate often includes nonrecurring closing costs, which are one time costs such as transfer taxes, title insurance, and points (a point meaning one percent of the purchase price used to offset interest or as a loan organization fee). Often times the Seller can be persuaded to give a credit towards some or all of these one time fees, especially since lenders will not allow anyone to help the Buyer with the down payment. Remember that everything is negotiable and covering some of these fees can help save thousands.
Perhaps you fall in love with a beautiful home here in Scottsdale, Arizona and the asking price $1,600,000. You might put an offer on this home with $25,000 credit at closing. The home will, of course, need to be appraised at this higher amount for this to work, but this cash at closing is typically used to help with some of the closing costs, or for things such as renovations. Often times in a Buyers market, Sellers and lenders will offer this credit at closing as an incentive, however, the price of the home will then usually be raised to cover these costs.
The amount of credit that can be offered varies among different lenders; however three to six percent of the purchase price is typical. For instance, if Whitney and Associates is helping you purchase a $1,500,000 home, then at three percent the Seller or lender can offer $45,000 towards nonrecurring closing costs. Some lenders will even pay all closing costs, but always remember that this money is still coming from somewhere. Therefore, instead of paying a higher interest rate or financing at a higher price, sometimes it is better to make the best deal and pay all of your own costs.
Let us help you when you are ready to invest in Scottsdale, Arizona Real Estate; after all, we are the experts. The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area. Award winning Realtors and Re/MAX top producers, The Szabo group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020, [email protected] or visit www.scottsdalerealestateteam.com to find out more about Scottsdale Homes for Sale and Estates for Sale in Scottsdale, Arizona.