Closing Cost or Reduction in Sales Price What is Best for Home Buyers?

As a local Northern Virginia Realtor, we get asked by our home buyers what is the best approach:

Whether to ask the sellers for a seller subsidy/ closing cost assistance OR reduce the sales price?

Here are 2 sides of the transaction thought process:

As a Northern Virginia home buyers, you want the best deal. As a Northern Virginia home seller, they care about their bottom line OR  NET from the home sale.

So what is the best way to handle this.

If you are a home buyer with a short on cash on hand or want to save bringing cash to the table definitely you should negotiate seller subsidy AKA as the home seller for closing cost help. An increase in the sales price may be small significant amount compared to the lump sum you may have to bring to the table. Have your lender work out 2 different scenarios for you with closing cost help and without closing cost help.

However, home buyers who have cash resource but they are looking to reduce their monthly mortgage payment negotiate the best sales price may be the way to go. 

The third option would be to ask for partial closing cost help. So if your closing cost is approx. $10K ask for $4-$5K. that will balance between your cash reserve and monthly mortgage payment.

Work with your lender to understand what is the best approach in your financing situation.

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