In real estate selling, negotiations can easily get heated on both sides. Some offers, such as the buyer asking the seller to pay closing costs, may be taken as an insult. However, in the vast majority of cases the potential buyer is simply trying to facilitate the possibility of the purchase. A bit of explaining can go a long way to soften the blow of this inquiry, improving the possibility of a successful sale, and allowing both parties to walk away satisfied.
Seller Pays Closing: What the Seller Needs to Know
Appraisal, title search, title insurance, loan origination fees and attorney costs can add a surprisingly large sum to home purchase costs, quickly eating away the down payment cash required by lenders. What can the seller (the party walking away with cash at the close of the sale) get back for such a seemingly large give?
• A higher purchase price.
Buyers typically take closing costs into account when they ask sellers to pay into an offer, making an offer that allows sellers to get more for the property but give some back as a rebate for paying closing fees in real estate selling. In fact, some buyers may pay a little extra.
• Greater exposure.
Closing fees of 3-10% can leave buyers short on cash for down payments and closing, leading them to purchase lower priced homes. By paying these costs, you open up your home as an opportunity to a larger pool of buyers, increasing exposure by 25% or more. This can lead to more competitive offers, and a faster sale.
• Faster sale.
As above, by refusing to pay toward the buyer’s traditional closing costs, you may have to wait longer to find a buyer who can afford to purchase your home and shoulder these costs.
Make the real estate selling process smoother and happier – for all parties. Check out the latest tips and tricks from Properties Online today.