When it comes to closing costs in San Mateo County, deciding who pays what can be similar to a first date. Whether it is your initial contract submission or when the waitress places the bill on the table, your actions can drastically affect the outcome at the end of the night. You ultimately have three choices:
- Reach for the bill (pay the customary buyer paid closing costs)
- Whip out the calculator and go dutch (split the closing costs or pay what you see as acceptable)
- Ignore the bill on the table and wait for your date’s move (throw the closing costs in the seller’s lap)
Again, for every action, there is an equal and opposite reaction.
In San Mateo County, it is customary for the buyer to pay most of the closing costs. However, with the recent transition from a seller’s market to a buyer’s market, negotiating these costs can be included in your offer. For the traditionalist out there, here are the customary closing costs in San Mateo County:
- Buyer Pays: Escrow charges, title fees, lender fees, points on your loan (if applicable), pro-rated taxes and insurance, and, depending on which city, one half of city transfer taxes (ex: San Mateo $5.00 per $1,000 of the purchase price, Hillsborough $.30 per $1,000 of the purchase price).
- Seller Pays: County transfer taxes ($1.10 per $1000 of purchase price) and one half of the city transfer tax (if applicable).
In this market, negotiating closing costs in your offer may not be considered bad etiquette. Even going dutch still may allow you a kiss at the end of the night. I’m no Dear Abby, but my best advice is to sit and discuss these options with your Realtor. Your Realtor will know the market conditions for not only the area and/or neighborhood but for the house itself. Their expertise can help you determine which option to take in the “who should pay what” quandary. All you can do is make an offer that you are confident and comfortable with. It’s all up to the seller if your first impression is love at first sight.
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