Why should I agree to pay for the buyer’s closing costs?

Why should I agree to pay for the buyer’s closing costs?

As a seller, your first instinct is that there is NO WAY we’ll pay for THEIR costs. However, keep in mind what really matters is your bottom line. If you are able to secure the bottom line equity amount (cash to you at closing) you are planning for or hoping for, does it really matter who paid for what? The first lesson that all parties in a real estate transaction need to understand is to not take anything personally. This is a business transaction and each party is simply trying to find a way to make the transaction work. Sometimes buyers and seller’s concentrate too much on what they are having to do instead of thinking outside of the box and figuring out what they can do to make an offer work out for both parties in the transaction. Paying for a buyer’s closing costs can work out GREAT for a seller, too! It can be a win-win situation. Many buyers that are asking for seller’s contributions cannot purchase the home without them. They simply do not have the down payment AND the closing costs needed to close. As the lending rules have changed over the last five years, the downpayment requirement has increased meaning that it costs more money out of pocket up front for many buyer’s to purchase a home. When a buyer has to ask the seller for assistance with their closing costs, it does not leave them with a whole lot of negotiating room. In some cases the seller will end up with a full price offer, or sometimes more. Not every single offer will be one that you should consider paying for the closing costs. As always, every offer is different and ultimately what matters most is performance and the bottom line. Can these people actually close if we accept a negotiated offer and if so, what will I walk away with? When selling your home, consider any and all offers carefully and completely. See what the sale will ultimately net you in proceeds and work from there to try and make the offer terms work for all parties.