Seller Paid Closing Costs Continue To Be An Advantage To Buyers

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Services for Real Estate Pros with Morris Real Estate Marketing Group
Original content by George Souto NMLS #65149

In Connecticut as in still many other parts of the country, we continue to be in a Buyers Market and as a result Seller Paid Closing Costs Continue To Be An Advantage To Buyers.  However, even though Seller Paid Closing cost tend to be mainly thought of as an advantage to Buyers,  Seller Paid Closing Costs are also an advantage to Sellers as well.

Seller Paid Closing Costs, can be a tool and an advantage for both Sellers and Buyers in several ways, but for the purpose of this blog I will stick to just a few of the main reasons.

What Are The Advantages Of Seller Paid Closing Costs For Buyers?

Buyers, especially First Time Homebuyers many times have very little money for both the Down Payment and Closing Costs.  Even those who do, will generally be left with very little or no money if they pay for both the Down Payment and the Closing Costs.  If the Buyers are First Time Homebuyers they might be able to qualify for a State Bonded Mortgage Program, like our Connecticut Housing Finance Authority (CHFA) program which will allow them to borrow the Down Payment and Closing Costs. Also if they are Veterans, or purchasing in a town that is eligible for USDA Mortgages, these program can solve part of the problem as well.  However, these programs are tougher to qualify for than a regular FHA, or Conventional Loan, and the Borrower(s) might not meet the requirements.  This is where Seller Paid Closing Costs can be a huge help.

By getting the Seller to agree to contribute towards the Closing Costs, whether in part or the total, the Buyer is now able to purchase the home and retain some money.  This will enable the Buyer to either make improvements to the property, or just simply have a little money in reserve to be able to take care of unexpected emergencies.  Having a little bit of money left in the bank can be the difference between being able to pay the mortgage, or going into default if an emergency arises.

What Are The Advantages Of Seller Paid Closing Costs For Sellers?

Sellers need as large a pool of Buyers as they can possibly get.  By increasing the pool of Buyers available to purchase their property, they increase their chances for multiple offers on the property, and getting the highest selling price for their house.  Being willing to consider paying some or all of the Buyers Closing Costs increases the pool of Buyers who might not be able to purchase the property otherwise. 

Those of us who have been in the business for a while know very well that in reality the Seller really does not pay the Buyers Closing Cost.  What really happens is the Seller provides the Buyer with an avenue to finance the Closing Cost.  For example the price the Seller was willing to sell the house at is increased by the amount of the Closing Costs the Seller is agreeing to contribute.  Therefore, the Sellers almost nets the same amount they had originally agreed to sell the property for, and the Buyer is able to purchase a property they may not have been able to without this assistance.

Seller Paid Closing Costs are a win, win for both the Buyer and the Seller.  The danger of course is the possibility of the property not appraising high enough to be able to cover the Closing Costs.  However, if the Listing Realtor did the proper job of pricing the property at a price which is supported by other comparable sales, then this should not be much of a concern.  If the Realtor took an overpriced listing, then Huston We Have A Problem.

I could provide more reasons for why Seller Paid Closing Costs Continue To Be An Advantage To Buyers and Sellers, but I thing the above reasons are enough to show why Seller Paid Closing Costs are an advantage to both Buyers and Sellers.




 Info about the author:

George Souto NMLS# 65149 is a Loan Originator who can assist you with all your #FHA, #CHFA, and #Conventional #mortgage needs in Connecticut. George resides in Middlesex County which includes #Middletown, #Middlefield, #Durham, #Cromwell, #Portland, #Higganum, #Haddam, #East Haddam, #Moodus, #Chester, #Deep River, and #Essex. George can be contacted at (860) 573-1308 or


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William Feela
Realtor, Whispering Pines Realty 651-674-5999 No.

yes it is, but I also have found that when the buyer doesn't need closing costs from the seller it can be a big plus when you have mulitples.

Nov 10, 2015 08:53 AM #1
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Lina thank you for re-blogging my blog and passing on this information.

Nov 11, 2015 09:19 AM #2
Morris Real Estate Marketing Group
Morris Real Estate Marketing Group - Toronto, ON
Marketing for realtors made easy!

You are very welcome George. 

Nov 12, 2015 02:36 AM #3
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