Who Pays Closing Costs?

Real Estate Agent with Keller Williams Premier Realty

When buying your Woodbury home consider the long term costs of asking the seller to pay points, it could cost you more over the long run! When in doubt, get in touch with us at www.tjreg.com to find out more on how to keep your closing costs to a minimum. Thanks for reading.

Original content by Bill Burke

I have had a lot of seller and buyers ask "me who pays the closing costs?" Well, it depends. I tell my sellers that in this market, it is not uncommon to get an offer requesting the seller to pay toward that buyer's closing costs. I am finding that with it being a buyers market, some buyers try to ask for everything under the sun. It doesn't mean that they will get what they ask for.

Lately, I have had a lot of sellers tell me that they have never heard of a seller paying for the closing costs and that that they don't feel that it is something that they need to do. They are right, they don't need to do it, however, depending on the situation and if they want to get the house sold, it might be something that they will have to consider in order to make the deal happen. A lot of buyers, even though they are approved for the loan, don't have the cash to put down and pay for closing costs. So in order to make the deal work, the seller may have to contribute to the closing costs.

If a seller does contribute to the closing costs, it can mean a higher price for their home. Not always, but most of the time it could. Because now if a buyer needs that money to close, then they have to consider that as part of a deduction off the price so the offer should be stronger than what they may have wanted to offer originally.

I have come across situations, where the buyer can not pay for closing costs and the seller also can not. This does not mean the deal is dead. This is where the two agents need to find solutions to try to still make the deal happen. One very common thing that can happen in this particular situation is that the buyers submit and offer for more than the listing price and ask for money back at closing for the amount that they go over the asking price. This has worked many times in the past for some of my deals. One big thing that you need to keep in mind when considering this option is the appraisal. You need to make sure that the asking price is realistic and price properly. If not then the property may not appraise and the offer of going above asking price will not work.

So when it comes to who pays the closing costs, it all depends on the situation. Buyers want to buy and sellers want to sell and if it means they need to work together on splitting these costs, then sometimes that is what happens. Sellers should not be so quick to say no to contributing to closing costs, however they also should not willingly offer to pay the closing costs, unless it is an incentive to sell the house because they really need to get it sold.

With each offer, both the seller and the buyer needs to evaluate and determine what they can or can not do and work together to make the deal happen. Again, there are ways to do this where both parties can benefit. Just make sure that you have a good agent to help you thought this.


For more information, please visit http://www.billburkehomes.com


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