My son and daughter-in-law are in the process of buying their first home (they want that $8000 tax credit!) and they’re asking some really great first time homebuyer questions. I thought I’d repeat some of our conversation here:
No seller really expects a full price offer, not in this economy anyway. The past national average was that offers came in 3%-5% below asking price. Now experts say the average national discount is about 10%. Sellers are not surprised when you offer less than they’re asking.
6% real estate commission is the norm in most states. If you buy from a for-sale-by-owner, you can use this to reduce your asking price since, if you buy their home, they won’t be paying that commission. The seller knows this will be a cost if they list the property and they expect to pay some commission if a Realtor brings them a buyer.
Closing costs. Both buyers and sellers pay some and can negotiate who pays what. In North Carolina, typically what the buyer pays includes:
