Should I Ask the Seller to Cover My Closing Costs? 

After thousands of steps on your Fitbit (and I mean thousands,) you've finally found your dream home! While consulting with your Realtor about the terms of your offer, you remember your Uncle had suggested to ask for the seller to pay all of your closing cost. 

When is it okay to ask the seller to cover closing cost?

That's a great question so it's a good thing you decided to ask your Realtor if this is something you can do. Unfortunately there is no one easy or correct answer.

If you're writing a full price offer or in better terms, a competitive offer, then asking for some assistance from the seller to pay for closing costs may be okay. But there are several key factors to keep in mind from the seller's stand point when asking for closing costs. Remember, when you ask for the seller to cover your closing costs, you are reducing the seller's net by the said amount.

Days on Market

A big factor to consider before asking for the seller to cover your closing costs is how many days the house has been on the market. If you're making an offer on a brand new listing that just hit the market, your offer with a closing credit probably won't be that competitive and the seller will likely counter you or perhaps even accept another offer.

What About Other Contingencies

Another factor to consider is if you are writing a contingent offer, such as you have to sell your house in order to purchase the house you are making an offer on. We are currently seeing a lot of these types of offers in this market. But with a contingent offer, you already have one strike against you in terms of being a strong offer. Asking for a closing credit on top of other contingencies would give you two strikes.

If you do ask for a closing credit, don't expect the seller to also oblige to a long list of repair requests. A lot of times a seller will be willing to cover some costs but then won't be as willing to cover additional repairs you may ask for later in the process. 

Bottom Line

The bottom line is you have to look at each scenario individually. There is no right or wrong answer. A big key to getting your offer accepted is working with a Realtor who is a good negotiator and will give you the best advice up front. A knowledgeable Realtor will find out if there are any other offers on the property and if the seller is firm on their asking price.  It really does pay to work with an experienced Realtor! Check out my recommendations, I'd love to help you make the move to your dream home. 

 

 

 

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