Why should a seller offer to pay for a buyers closing costs & prepaids?

It opens a seller up to a bigger market of buyers. Many buyers can now get 100% financing, but still need to save for closing costs and prepaids. As a seller you can sell your home for nearly your asking price and profit vs. haggling on a selling price with no seller concessions. See example below based on a sales price of $100,000.

• Seller haggles with buyer and accepts a $95,000 offer. The seller has a smaller market which may take longer to find a buyer and has carrying costs. The seller nets $95,000 minus carrying costs.

• Seller accepts an offer of $100,000 with a 3% concession to the buyers closing costs and pre-paids. The seller has a bigger market of buyers and sells the home faster with a net of $97,000. There may also be additional tax savings rewards.