WHAT IS CUSTOMARY?
Customary closing costs vary regionally in regard to what the buyer or seller pays, or what is split between parties. Anchorage is unique in that the appraisal customarily has been the seller’s cost, while nationally it is a buyer’s cost. A problem occurs if the transaction doesn’t go through. The seller might be stuck paying for another appraisal for the next buyer if the first appraisal can’t be used. Perhaps a solution is to change the custom of who pays for the appraisal; this change could create a better balance between the parties. What is negotiable? Negotiable closing costs often depend on how much help buyers need with their closing costs or if they are just trying to get a good deal. While having the seller pay some of the buyer’s closing costs might be good for the buyer, it can create a problem for the seller. Depending on the lender and the loan program, appraisers must adjust comparable sales values to compensate for these types of concessions. This can create a downward
