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. SHOWME SOME NUMBERS, PLEASE! s Let’s say, for instance, your asking price is $250,000. s Closing costs would be approximately $7,500. s Your bidder makes an offer for $240,000 and additionally asks you to pay the closing costs. s This means you would be letting your home go for $17,500 less than you asked for it. s 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. s This reduces the amount of your loss to a more reasonable $7,500. s 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. If a bank won’t approve a loan for the amount you’re asking, you’ll have to go back to the drawing board. A bank won’t lend more money than your home is worth in any event, especially in today’s economy. In many situations though, paying closing costs can be a great way to close a deal. It can make the difference in the buyer choosing to go into debt for your home rather than a home down the street. A FINAL TIP Here’s how to immediately gain the upper hand in any negotiation. If you ever feel you are getting “taken advantage of ” in any negotiation, tell the buyer you are changing your mind. Yes, that’s right. You are taking your home off the market.
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