amount.
Buyers might not be able to come up with extra cash for closing costs, but they can often borrow more money with their loan. Many buyers don’t realize that if you pay their closing costs, you are giving up some substantial profit on your home’s sale. You should help them realize that fact in your counteroffer. When the buyer submits an offer that includes you paying the closing costs, counter by agreeing to do so, as long as they agree to the higher price you’re proposing for your home.
SHOW ME SOME NUMBERS, PLEASE!
• Let’s say, for instance, your asking price is $250,000. • Closing costs would be approximately $7,500. • Your bidder makes an offer for $240,000 and additionally asks you to pay the closing costs. • This means you would be letting your home go for $17,500 less than you asked for it. • Counter by agreeing to pay the $7,500 in closing costs if the bidder is willing to pay the original price of $250,000 for the property. • This reduces the amount of your loss to a more reasonable $7,500. • The bidder is still getting a deal, and you’re getting a fair price. (These numbers are only approximations.) Ideally, this approach allows you to get back the money you invested for closing costs as soon as the deal is done. However, there is one major hurdle that could hinder you.
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