Grandpa Never Paid No Buyer's Closing Cost. Why Should We?

Preach it, Doug!  To me if the bottom line is the same - then just do it -and as you say "slap a SOLD sign" on that house!

Doug, whether the seller needs to pick up the buyer's closing costs really depends on the particular market the property is in. I am sure in some areas it is 'de rigeur'. A 2-3 years ago it had become common in the Orange County market as well, but many pockets now have multiple offers on homes, so the offer that nets the most, wins. Buyers who still imagine they get closing costs tend to lose out here. The real estate market is truly LOCAL, and yes, occasionally LOCO!

I also don't know why sellers get so POed about this.  As someone else said, it's just another line item on the HUD.

Sellers should just focus on their net poceeds and not worry about how much the buyers are putting down! Dollars are dollars and they are doing themselves a disfavor by looking down at 100% financing buyers. In my market, the military is a very large segment of buyers and VA loans may include asking the sellers to pay all closing costs!

Doug, I had a seller once that told me right off the bat that he won't accept any concessions because "that's what got this country into the mess we're in." I sold the house with 3% concessions.

Tomato or To-ma-to?  On the HUD statement the seller has his proceeds showing the walk away from the table money (hopefully) and that is going to reveal where concessions are made the seller usually gets a higher purchase price. No concession sellers usually have a lower purchase price.  Can you see where I'm headed?  It is all relative to making the sale!  The balance lies in the downside for the seller paying a larger commission on the higher price (if seller consessions are made) but gains in attracting a much larger pool of buyers willing to "play" which hopefully reduces days on market.

This isn't grandpa's market.  Sellers need to have realistic expectations.  This is a conversation that should take place early in the listing, before any offers come in.

Doug - We have to change as the markets change. And, sometimes it's hard to make people understand that.

Doug, transactions with 100% financing are pretty unusual around these parts.  I think I've done one VA, and the rurual loans don't really work here!. 

I guess we need to better educate & manage the sellers expectations in this situation, hopefully they would listen.

Doug:

When grandpa bought his house houses were a lot expensive and grandpa may have had a big down payment.  Since most buyers don't have a large amount of cash for down payment and closing costs they look to the seller to help them when closing costs.  Not unreasonable.

It is all relative.  Sellers need to look at the net and get the best net they can.  Often times you can net more by paying some closing cost.

I usually hear this complaint more when the sellers aren't netting a huge amount which is understandable, but there is usually a way to adjust the deal so that it is acceptable to both buyer and seller.

The seller is well within his rights to turn down an offer involving closings costs. As as a buyer's agent, I am within my rights representing said buyers, to reject his counter and find the buyers another house. Never said it would be easy.

Like they say, this is NOT your grandpa's market!

This comes as no big surprise, In the California market anything goes.