In wholesale deals who pays closing costs?

Question

Hello all,

I am a investing realtor from Chicago and have a potential wholesale deal however the only thing holding me back from making writing up the contract is the fact that the seller wants the buyer to pay for closing costs? I want to be clear to my investors and I do know closing costs can vary. The deal is a brick 5 bedroom turn key condition house in Roseland...

Does anyone have experience with this? how is this normally handled?

Ralph C. · Answer

While anything and everything in real estate is negotiable, the closing costs are always paid by buyers in a Wholesale deal.

Shawn Ackerman · Answer

@Anita Gee your choice. I usually split between buyer and seller. However it really should be used as a negotiating tool. If your getting a deep discount I'd pass closing costs along to the buyer, if not, then pass it to the seller but at the end of the day, you my friend should be paying $0 at closing. Gotta love wholesaling!!!!!!!!

David Walls · Answer

@Anita Gee I agree with @Ralph C. Everything is negotiable, but I've always had in my contracts that the buyer pays. As long as you let them know from the beginning and the numbers will still make it a deal for them with the closing cost, they usually don't mind.

Jimmy Murray · Answer

@Anita Gee in the wholesale deals I have completed the Seller has paid the closing costs unless otherwise negotiated. I did have a seller one time at closing refuse to pay the costs and we renegotiated the contract right there on the spot!

Matthew T. · Answer

I have done 10 wholesale deals and always had the buyer pay closing costs. But like a few have said, everything is negotiable

Kim Tucker · Answer

You can always as the buyer pay the closing cost for the seller and adjust your price down. However it would be important to define what those closing costs might be. That the cost are the fee for the title company to provide a title policy, to facilitate the paperwork (the closing fee) and to file things.

If the deal has a lot of issues, back taxes, and other liens tied to the house, you could negotiate to pay them and again adjust your price.

In our case our contract states that the seller pays their side of closing which is the title policy and what the title company charges the seller to close. And the buyer pays their side of closing which is what ever it costs to close and the lender title policy if one is needed. But if the seller wants us to pay it, no problem, we just renegotiate the price. And no one really seems to care that they have closing costs as the seller.

Anita Gee · Answer

@Ray Barlte,

Are you referring to the buyer or seller paying their own in most of your wholesale deals?

Anita Gee · Answer

This was really helpful..

Thank you everyone

In wholesale deals who pays closing costs?

In wholesale deals who pays closing costs?

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