Paying Closing Costs For The Buyer

By
Real Estate Agent with RE/MAX Andrew Realty Serfvices

Paying closing costs for your house buyerWhen you are selling a house, there are many facets to an offer. Today we’re going to discuss closing costs. Some buyers will ask you to pay their closings costs as part of their offer on your house. Sometimes you’ll come to an agreement on the price and then the buyer will ask if they can increase the purchase price by a specific dollar amount with your paying that same amount towards their closing costs. The reason why the buyer is asking you to do this is so that they can finance in their closing costs. Many times it’s the buyers’ bank that originally suggests this.

When you’re looking at an offer that includes your paying closing costs, remember to subtract the amount of the closing costs so that you’re looking at the actual “net” offer to you. When my client has been asked to pay closing costs, I subtract the closing costs before the commission is determined (since you won’t actually receive that money, I don’t want to charge you commission on it!)

The closing costs will be spelled out in the offer, in the Purchase and Sale Agreement and will be on the HUD Settlement Statement so everyone (including your account) knows that you paid this expense.

Photo Credit: Images_of_Money

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
Home Selling
Groups:
ERA
MA REALTORS
Tags:
closing costs
selling a house

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Rainmaker
272,107
Marjorie Taylor
Riverside Homes - Saint Augustine, FL
New Homes in St. Augustine Florida

Interesting that you subtract the closing cost $$ before calculating your commission.  I have never done that before, I think that would be like subtracting the cost of the appliances and other personal property that are negotiated in the sale.

Sep 08, 2011 01:20 AM #1
Rainmaker
165,790
Jill McTague
RE/MAX Andrew Realty Serfvices - Medford, MA
DebOnTheWeb & Associates - Medford, MA Real Estate

Many times I've completed negotiating on a property and then the buyer asks if we can increase the price and add in the closing costs.  It's a small amount of commission but it goes a long way towards good will.

Sep 08, 2011 01:26 AM #2
Rainer
19,277
Dave Williamson
Gateway Funding - Winona, MN

This is the way many deals are done. Makes for a perfect opportunity to make the buyer and seller happy.

Sep 08, 2011 02:33 AM #3
Post a Comment
Spam prevention
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainmaker
165,790

Jill McTague

DebOnTheWeb & Associates - Medford, MA Real Estate
Ask me a question
*
*
*
*
Spam prevention

Additional Information