Question:
“What’s the benefit of having a seller pay closing costs for the buyer? They’ll want a higher price, so I don’t get why people do it.”
Answer:
Indeed, when I get an offer on a client’s home and the buyer wants the seller to pay their closing costs, many of my clients object. And I tell them to just do the math.
Selling for 500K with 10K in buyer’s closing costs is almost the same net as selling at 490K. I say “almost” because some fees are tied to the price. But the difference relatively small.
So why DO buyers often ask sellers to pay their costs?
The buyer will not have to come up with as much money out-of-pocket at closing. So in effect, by paying more on the price but less closing costs, they finance part or all of the closing costs.
OK, but why do sellers often agree?
The benefit to the seller is that it may be necessary so the buyer can buy their home.
