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Can Buyers ask Home Sellers to Pay their closing costs?

By
Real Estate Broker/Owner with Godzyk Real Estate Services NH License 033394

Is it acceptable for a Seller to Pay a Home Buyers Closing costs? These are 2 common questions and the simple answer is a buyer can ask for anything, whether they receove it is another thing. Different parts of the country have different traditions. However this is a subject I bring up with the Home Seller when Listing a Home For Sale. Here in NH the majority of sales where the Buyer gets a mortgage, it is a FHA Mortgage. Most Buyer using a FHA mortgage in the Manchester NH Area do so because they have good credit but little savings.

 

Most Sellers do ask "Why they should have to pay the Buyers Closing Costs?" The simple answer is so that they can sell their home quicker and at the best obtainable price. They often look at me as to how this happens if they are paying the Buyers closing costs. Simply put the more buyers interested in one's home, the higher the sales price may be. In addition when pricing a home for sale, it is almost a given the buyer will ask for 3% of the sales price towards their closing costs, so sellers can simply add it to their asking price.

 

The Reality is a Seller is not losing any money from the sale, they get the best price in an open market, they get the most possible amount of buyers making offers and therefore get a top sales price over if they just looked for a buyer who had their own money for a down payment and closing costs.

 

 It is common and perfectly acceptable for a Home Seller to credit the buyer with their closing costs. Most common, many buyers ask for up to 3% of their closing costs to be credited at closing by the seller. Most sellers think they have to pay cash to the buyer. This is just not true, it is all done on paper and is simply deducted from the total proceeds. Every good listing agent can outline this with their sellers.  

  

I leave you with my infamous words of wisdom that Buyers and Sellers can learn that they do have a choice in Real Estate Agents. Choosing a "GOOD" one, sure can make a difference. I leave you with my simple recipe to make your Real Estate Dreams come true.

 

THE SECRET OF SUCCESS and the key to having a successful purchase can increase simply by choosing a better agent. The secret is, that All Agents are not created equal and every buyer or seller should take the time to hire the BEST not just the biggest. I leave you with now infamous philosophy, which is simple, to provide more personal and professional service to guide my clients through each step of the buying or selling process.

 

THE TOP TIPS TO FIND A "GREAT" REAL ESTATE AGENT

 

 1. LEARN THIS ONE FACT: One should know that All Agents are not created equal and every buyer or seller should take the time to hire the BEST not just the biggest Agent or Company. It is important to Hire the BEST Agent. In NH that could be me.   

2. CHOOSE THE RIGHT AGENT: As a Buyer OR Seller in this market you need every advantage you can to get your home sold. It starts with choosing the right agent. a. Ask for a Full time agent whose sole job is to sell homes. b. Ask for a Full service agent who will guide you through each step of the selling process. Discount brokers often equal discount services. c. Ask for a Local agent who knows your neighborhood and is readily available when you need them is a must. Out of town agents can leave you high and dry in your time of need. d. Ask for a well experienced Listing Agent can give you the advantages you need when selling your home. Not all agents are created equal. Choose only the best.  

 3.  

3. HOME SELLERS SHOULD START BYGetting a FREE MARKET ANALYSIS. Learn what your property is worth in today's market along with how ling it may take to sell. If you are ready to sell now, learn what you should ask for it. How much offers may come in at and what the approximate selling price should be. NH Home owners should contact me now.   

  

It does not take magic to turn your "For Sale" sign into a "Sold" sign. it takes a full time Local Agent who specializes in Listing homes like yours.


If you are thinking of Selling a Home, Call us for a FREE Market Analysis. If you are think of buying a Home please contact us to get a free pre-qualification.

 

 

WE STRIVE TO PROVIDE THE BEST POSSIBLE SERVICE THROUGHOUT EACH STEP OF THE LISTING AND SELLING PROCESS!!!

 

If you need to sell your home and you owe more than your house is worth, i may be able to help. I specialize in working with home owners to get your home sold. There are many options such as a short sale which may be able to help you.
 

 

We are local agents with experience who GET RESULTS!!!

 

We stand by you through every step in selling your home.

 

 

 

Another reason that makes New Hampshire a great place to Live, Work and Play.

 

About the Author: Scott Godzyk is the Owner/Broker of the Godzyk Real Estate Services in Manchester NH. With 30 years of experience, Scott is a leading Agent for Listing and Selling Homes in this area. To CONTACT Scott Godzyk please call 603.661.2121 or EMAIL: Sctprop@aol.com . We are Full Time Agents ready to serve all of your Real Estate needs through each step of the buying and Selling process. We are proud to be locally owned and operated.

Comments(31)

Lawrence "Larry" & Sheila Agranoff. Cell: 631-805-4400
The Top Team @ Charles Rutenberg Realty 255 Executive Dr, Plainview NY 11803 - Plainview, NY
Long Island Condo and Home Specialists

That's not going to happen here on Long Island. Seller NEVER pays closing costs for buyer!

Mar 17, 2016 12:44 AM
Noah Seidenberg
Coldwell Banker - Evanston, IL
Chicagoland and Suburbs (800) 858-7917

I personally do not like it Scott but what can you do. I have anything and everything happen and it confuses the contract but we have to deal with what the clients want.

Mar 17, 2016 01:15 AM
Sandy Padula & Norm Padula, JD, GRI
HomeSmart Realty West & Florida Realty Investments - , CA
Presence, Persistence & Perseverance

Scott Godzyk It is not typical in either of our locations that sellers pay buyers closing costs without increasing the price to offset the concession.

Mar 17, 2016 02:24 AM
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate Services

Scott, Some times it makes sense for a seller to pay a buyers closing costs. In the market I am in ... the likelihood of that happening is slim to none. 

Mar 17, 2016 02:26 AM
Doug Dawes
Keller Williams Evolution - 447 Boston Street, Suite #5, Topsfield, MA - Topsfield, MA
Your Personal Realtor®

Hi Scott Godzyk 

I agree with you 100%. Anything can happen.

Mar 17, 2016 03:54 AM
Dick Greenberg
New Paradigm Partners LLC - Fort Collins, CO
Northern Colorado Residential Real Estate

Hi Scott - Along with the "contingent on sale" offer, seller-paid closing costs are another casualty of our hot seller's market - today, buyers don't dare ask for that.

Mar 17, 2016 04:38 AM
Debbie Laity
CinaJones Real Estate - Cedaredge, CO
Your Real Estate Resource for Delta County

Hi, Scott...it's very common for buyers to ask for closing costs in my market. This is a very informative post. 

Mar 17, 2016 09:30 AM
Kathy Streib
Cypress, TX
Home Stager/Redesign

Hi Scott- the best thing a buyer or seller can do is work with the local professional in their area... and that would be you. 

Mar 17, 2016 10:34 AM
Myrl Jeffcoat
Sacramento, CA
Greater Sacramento Realtor - Retired

When I was first licensed in 1981, my office was just down the road from an Air Force base.  Those were tough times for sellers, and I sold a lot of homes to the airmen using VA "no-no" lending.  However, we are currently experiencing a shortage of homes here in Sacramento, and demand is high.  Our military bases were closed in the 1990s.  In our environment now, the buyer with the best offer wins.  Buyers are often competing with one another to get a house.

Mar 17, 2016 12:17 PM
Gary L. Waters Broker Associate, Bucci Realty
Bucci Realty, Inc. - Melbourne, FL
Eighteen Years Experience in Brevard County

Sure you can ask but consider the market and competition....my usual response.

Mar 17, 2016 11:35 PM
Ron Aguilar
Gateway Mortgage Group - Saint George, UT
Mortgage & Real Estate Advisor since 1995

Great topic with very good comments. If you don't ask then you will not receive. But with offers of buying Real Estate this request can kill your desire to buy the home. When you buy a car then its worth it to beat up the Sales Manager at 9pm on a Saturday night :)

Mar 18, 2016 12:15 AM
Michael Jacobs
Pasadena, CA
Pasadena And Southern California 818.516.4393

Hi Scott -- as you wrote -- "yes, you can ask for a seller to pay for your closing costs" but be prepared that depending on market conditions, number of offers or any number of different factors the answer may likely be "No".  There's no definite answer beyond "it depends".   

Mar 18, 2016 02:52 AM
Doug Kaller
Academy Mortgage, Reno, NV - Reno, NV

 

Seller concessions are great in a buyer’s market. Often, buyers were coached to add the amount of the concessions to their offer and ask the seller credit it back. As long as the home appraised for the value, it was a great strategy. Our market has become so competitive that sellers are countering with the higher offer price without paying the concessions. Although 3% is almost impossible right now, a good agent can ask the seller to pay the full transfer tax or escrow fee which are typically split. Often this slips by saving the buyer a few hundred dollars. Also, we are seeing offers accepted where the buyer askes for 1% to  2%. A small seller concession plus a “Home at Last” or Home is Possible” non-repayable grant can get these buyers into a home.

 

Mar 18, 2016 02:52 AM
Lyn Sims
Schaumburg, IL
Real Estate Broker Retired

Just depends how your market is going. Always tell the sellers to be open & most of the time it all works out to be the same for the seller.

Multiple offer situation - buyers are done for.

Mar 18, 2016 03:18 AM
John Wiley
Fort Myers, FL
Lee County, FL, ECO Broker, GRI, SRES,GREEN,PSA

Scott, thanks for providing this good information on Sellers paying closing costs.

This would be great to share with buyers and sellers.

If a seller can understand the benefit of using this method they could possibly see their home sell faster and for more money.

It would help a lot of buyers get into a home.

Mar 18, 2016 05:50 AM
Gene Riemenschneider
Home Point Real Estate - Brentwood, CA
Turning Houses into Homes

In theroy the home needs to appraise so technically they are giving up some value, it is not just a matter or buyers paying 3% (or whatever) more to get it back for closing.    In practice I find appraisers come in at purchase price (within reason) and as the seller is generally taking the highest net offer, they get exactly what the home is worth.  

Mar 18, 2016 10:46 AM
Ed Silva, 203-206-0754
Mapleridge Realty, CT 203-206-0754 - Waterbury, CT
Central CT Real Estate Broker Serving all equally

It is done down here as well and the agent has to know when it is appropriate to ask for same, especially if it's a house that has gotten a lot of attention.

Mar 19, 2016 01:30 AM
Mary Hutchison, SRES, ABR
Better Homes and Gardens Real Estate-Kansas City Homes - Kansas City, MO
Experienced Agent in Kansas City Metro area

Many first time buyers expect a seller to help with closing costs...those first timers have scrimped for the down payment, want to buy furniture, paint, perhaps do some fix up...however it's such a strong market for sellers I often see closing costs folded up into the list price

Mar 19, 2016 01:22 PM
Sharon Parisi
United Real Estate Dallas - Dallas, TX
Dallas Homes

Although this is always an option, it weakens an offer in a fast paced seller's market.

Mar 21, 2016 11:19 PM
Dale Taylor
Re/Max 10 New Lenox Illinois http://dtaylor.remax.com - Frankfort, IL
Realtor = Chicago Illinois Homes Townhomes Condos

Like your message so much I re-blogged it with some added information for Illinois Buyers.  Thanks and Happy New Year!

Dec 30, 2016 10:21 PM