(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. However, there’s one major hurdle that could hinder you. In the event your home won’t stand 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 than your home is worth.
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 fair price for an outstanding home from the very beginning.
A FINAL TIP: HOW TO IMMEDIATELY GAIN THE UPPER HAND IN ANY NEGOTIATION
If you ever feel you are getting “taken advantage of ” in any negotiation, do this. Tell the buyer that you’re changing your mind. Yes, that’s right. You’re taking your home off the market. The dynamics of the negotiations will change right away. The buyer will now have to sell you on why you should sell the home to them. In addition, they will have to make a sweet offer to have any chance of you accepting it. I’m not saying you should use this tactic in every negotiation. However, this can be a very effective strategy when you feel you are losing the negotiation. I only recommend using it in that type of situation.
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