house worth the asking price is willing to sacrifice. • So, you make a more reasonable request. Simply counter by agreeing to pay the $28,200 in closing costs, but only if the bidder is willing to pay the original price of $950,000 for the property. • You’ve reduced your profit recuction to a more reasonable amount, at $28,200. • The bidder is still getting a deal, and you’re getting a fair price. (Keep in mind these numbers are only approximations. Actual numbers will vary. I think you can see the point, though.) Ideally, this approach allows you to get back the money you invested for closing costs as soon as the deal is done. The credit you are giving the buyer is simply a number on each side of the settlement statement. You aren't going to be writing a check and handing it to the buyer. However, there’s one major hurdle that could hinder you. In this event, when your home won’t sell for the amount of money you’re asking, you’ll have to go back to the drawing board. A bank isn’t going to lend more money to the buyer than your home will appraise for. However, paying closing costs in many situations can be a great way to close a deal. It can mean the difference in your possible buyer choosing to go into debt for your home rather than a home down the street. It’s just a matter of asking a realistic price for an outstanding home from the very beginning. A FINAL TIP: HOW TO IMMEDIATELY GAIN THE UP Y GAIN THE UPPER 92
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