I am currently looking at a couple of commercial properties in northeast Ohio. When it comes to the closing costs who typically pays what? Has anyone ever successfully negotiated that the seller pays the closing costs? Thanks.
@Joel Owens might be able to answer
Tom, closing costs can be negotiated, but rarely you'd have a deal where a seller pays even most of the costs unless it's a cash deal. Settlement costs vary locally as to who usually pays what but loan costs or expenses required for financing will be on the borrower/buyer unless it's a strange transaction.
In commercial transactions you can have engineer reports, compliance fees, attorney fees, syndication fees, bond fees, tax credit requirements, transfer fees, accounting fees, title insurance, funding fees, loan insurance- guarantee fees the list goes on, depends what you are doing. Costs vary, type of property, area influences, 12 units or 120units or 210 units?
Best to get an idea of what fees are involved from you lender and closing agent. Best to get the actual expenses and charges from the horse's mouth than off forums.
Oh yes, I bet Joel can beat this one to death with endless possibilities. :)
Thanks guys that was much appreciated and helpful......I know the list can be extensive depending on the type of commercial project...but the idea that anything is negotiable and that depends on the seller's situation as well - if they are motivated they may be inclined to pay for more to get out than someone that is just looking to get out of the building and get their cash with no real time table. As an architect that list of up front items can be just as long as the closing list.
Have you ever been able to roll all or a portion of the total closing costs into the loan?
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