What If the Seller Helped Pay Your Closing Costs?

What If the Seller Helped Pay Your Closing Costs?

Last week, we talked about something we think more potential homebuyers need to hear:

Don't assume you can't afford to buy a home until you know what's possible.

One of the biggest surprises for many buyers is that the down payment isn't the only upfront expense. There are also closing costs—and seeing those additional dollars can make buying a home seem even further out of reach.

But here's something you may not know:

You may be able to ask the SELLER to help pay them.

When Karin and I help a buyer write an offer, price is only one of the things we can negotiate.

Depending on the situation and your loan guidelines, we may be able to ask the seller to contribute toward allowable closing costs.

Let's look at a simple example.

Suppose a home is listed for $250,000.

You might be tempted to offer $245,000 and celebrate negotiating $5,000 off the price.

And sometimes that's absolutely the right move.

But what if instead we negotiated a $5,000 seller contribution toward your closing costs?

Reducing the purchase price by $5,000 doesn't mean you have an extra $5,000 in your pocket on closing day. In fact, depending on your financing, the difference in the monthly principal-and-interest payment could be relatively small.

Getting $5,000 toward closing costs, however, could mean bringing $5,000 less of your own money to closing.

For a buyer trying to preserve savings for moving expenses, furniture, repairs—or simply an emergency fund—that can make a BIG difference.

Why would a seller agree to that?

Because everything in an offer works together.

A seller might be more willing to contribute toward closing costs if:

• The home has been on the market for a while

• There aren't multiple buyers competing for it

• The seller is motivated to move

• The offer is otherwise attractive

• The seller can still achieve an acceptable net from the sale

That's why we don't believe in treating every home and every offer exactly the same.

Sometimes the best negotiation isn't the lowest price.

Our job when representing a buyer isn't simply to say, “Let's offer $X.”

We want to look at the whole picture and ask:

How can we structure this offer to give THIS buyer the best possible outcome?

Sometimes that's a lower price.

Sometimes it's help with closing costs.

Sometimes it could be repairs, a rate buydown or another concession.

And occasionally, the smartest answer is simply paying the asking price because the house is priced correctly and competition is strong.

That's where strategy matters.

Want to learn more before you're ready to buy?

Our FREE Homebuyers Success Academy walks you through the home-buying process so you can understand what to expect before you're sitting across the table signing paperwork.

👉 Homebuyers Success Academy:
https://www.youtube.com/playlist?list=PLU-DcNzz_A94

And if you're sitting on the sidelines because you're worried you don't have enough money saved, talk with us before you count yourself out.

We can't promise there's a way to make the numbers work.

But we can help you find out.

Ed & Karin
At Home with Ed & Karin

With HEART and a bit of HUMOR, you will feel At Home with Ed & Karin.

Seller contributions are subject to the terms of the purchase agreement, seller approval, lender requirements and applicable loan-program limits. Consult your mortgage professional regarding your specific financing.