Seller paid closing costs the best deal going today in Real Estate

by Dan Havey on August 23, 2011

Join Real Estate Marketing This Week as we discuss the world of Real Estate and Mortgage Marketing. We shot this video of our Radio Show as an example of how you can use one piece of content in many different ways.

If You Don’t See The Video, Click Here => Real Estate Marketing Video

Part 1
Welcome to the velocity of money you’re listening to KFNX 1100 AM Arizona’s news talk leader.

What a beautiful day outside the most important being is that it’s Seriously Dean’s birthday.

There is a happy birthday from me and everyone at the velocity financial.

Leslie and out family to you I hope that Mark and the boys take good care of you today and all through the weekend.

Today we are going to be talking about mortgage strategies buying real estate all the different things that you need to know from here on out through 2009 lots and lots of opportunities we brought back once again one of the best financial planners in the entire country Mr. Brett Fallon, Brett thanks for coming back Thanks for having me back.

We also have in the studio today a very good friend of mine Mr. Dan Havey, Dan has been in the real estate and mortgage industry for over 20 years in fact he got me into the industry, he was instrumental, in fact the major hand behind the putting together of the loan modification hotline and I like to welcome Mr. Dan Havey to the program and thank you so much for coming.

Thank you so much for having me Michael I’m curious we are in a radio studio and I was just wondering, why is there a camera here video taping us today? Good question we are videotaping these segments today and we are going to be putting them on YouTube as well as turning them into podcasts and putting them on the website.

So that people can watch the segments in their entirety with the questions and even closed captioning is a great opportunity for people to learn more about what’s happening.

So that’s why the camera is here and that’s why I’m dressed for radio.

We want to talk about we recently had a situation come up in the purchasing arena Dan and I have talked about this a little bit over the past week.

We felt it necessary to bring up, now Velocity Financial is a financial services firm we are primarily focused on doing mortgages for residential purchasing and refinances.

One of the things that we have seen is the purchasing market has picked up quite a bit and looks in my eyes like we very well may have hit the bottom on prices.

You can buy a 3000 ft.² house for $150,000 these days, but one thing that we’ve recently found is most of the sellers are willing to pay closing cause on behalf of the buyer.

It is a known fact that it’s a cold buyer’s market and sellers are happy to have an offer.

Whether it be a low offer or not.

Now I have a couple examples I want to share, it’s important to point out that I am not a realtor I do not want to be a realtor those people that take the time to get a license to be realtors they know what they’re doing and they do very well, however you’ve being the person that is going to buy a home you need to protect every penny that you can add the example I have written down, and Brett feel free to chime in at any time if I should happen to miss something here.

I’ve put together a scenario of purchasing a $300,000 house, now if you buy a $300,000 house and you have to put a 3% down as my example that works out to be about $9000.

Let’s just say that the closing costs associated with purchasing that house plus the prepaid interest, setting up an escrow account, paying a year’s worth of homeowners insurance, there is also property taxes that he be paid, home owners dues, all these different things, those can add up they don’t need to be 3% they can be less they can be more.

This example is just making it simple so that you can understand it.

If you buy a house for $300,000 you put 3% down and 3% for closing costs your out-of-pocket for this example is going to be about $17,500.

Now if you were going to buy that home and have all of that prepaid escrow and closing costs deferred to the seller and actually paid $309,000 so that you actually roll the closing costs into the cost of the home and only came out- of-pocket 3% you would be out-of-pocket about $8900.

So the savings there is $9000 your mortgage payment will go up, however with a payback of about 160 months.

So in other words if you take the money out of your account today you are going to lose that and have a lower payment on every hand if you roll and it’s going to take you 160 months to break even on that
Real Estate Marketing This Week

Related Posts:

Tagged as: , , ,

Previous post:

Next post: