Should I pay the Buyer's Closing Costs - Tips For Seller's

If you're currently working with an accepted purchase agreement, or if you're considering selling your home soon, it's possible that you will be asked to pay all or a portion of the buyer's closing costs. How much to pay is usually negotiable, but it will likely depend on what state you currently reside in. Many states will vary when it comes to who is supposed to pay closing costs. Some states each party, buyer, and seller are required to pay their own closing costs. Since every state is different you will want to talk with a licensed Realtor in your state that is well versed in the local norms of purchase agreements. In the midwest, it's often expected that the seller will contribute in some way to the closing costs of the buyer. Although not necessarily welcomed by the seller it's a typical expense that you can plan to pay when selling your home in Minnesota.  

How Much is too Much?

Obviously, when you're planning to sell your home, you're looking to take away as much money as possible from the sale. If you're expected to pay closing costs, that amount will come right out of your proceeds. Here's the bottom line, a local Real Estate professional will prepare a net sheet for you at the time of being presented with an offer so that you can see where you're at walking away from the sale.

Like I mentioned, the amount is often negotiable but consider this very important point, a buyer may have limited funds when purchasing a property. It could be a first-time home purchase, or they're looking to use a good sum of their cash for a remodel or updating the home once it has been purchased. They may not have the funds for a large downpayment or fix-ups and the cash to pay for their closing costs. It's customary for the seller to expect to pay the closing costs on behalf of the buyer's and by not paying them, you may lose the sale as the buyer may now not qualify to buy the home. So how much? The norm to paying for a buyer's closing costs is 3% of the purchase price. Don't always focus on the amount of the closing costs as there's always the possibility that the buyer is willing to pay a higher price for the home in order to absorb some of their own closing costs. Use this, for example,  your home is listed for $250,000. The buyer's offer comes in at $250,000, but they ask you, the seller to pay the 3% closing costs ($7,500). You can counter their offer to $253,750 and essentially split the difference. That isn't always accepted by the buyer, but it is an example of how to keep your buyer and work through negotiations so it's a win for both sides.

So Who Pays the Seller's Closing Costs?

The seller.... if you're located in the Midwest/Minnesota area, the seller is usually responsible for paying their own closing costs at the closing table. Again, depending on which state you currently reside in, you may have different norms. Get assistance from your local Real Estate agent to advise you how to proceed. For more tips on selling your home, or increasing your value for less, connect with an agent at The Herda Home Team at HerdaHeidi@gmail.com or 612-807-4858.

Thank you for reading my Heidi Herda Real Estate blog, "Should I pay the Buyer's Closing Costs - Tips For Seller's!" Herda Home Team with Keller Williams Classic Realty would love to set up a FREE seller consultation to work through tips, tricks and a proven Marketing system to get you the MOST money possible! Connect with us now at 612.807.4858 #homevalue #herdahometeam #tipsforsellers #realestateadvice