NEGOTIATION TECHNI N TECHNIQUE #5: UE #5: Pay the Piper, but Raise the Price
Unless it is a strong seller's market, buyers are likely to ask sellers to pay their closing costs, which are normally around 3 percent of the actual price of the home. I know it makes you shudder to even think of handing out that kind of cash. However, this kind of deal could work to your benefit.
The Buyer’s Perspective
Let’s look at this from a buyer’s perspective for a moment. Many home buyers, especially first-time home buyers, can’t afford to come up with additional funds for closing costs. Often, they are strapped for cash after coming up with the down payment for a home, money for new appliances or furniture, and moving expenses.
The Seller's (your) Perspective
On the other hand, it isn’t fair for you to pony up that much cash just so they can buy a home. After all, they not only want you to pay the closing costs but may also want you to come down on your original price. You should pay those closing costs. Wait! Before you decide I’ve lost my mind and toss this book in the trash, allow me to explain how paying those costs will work for you in the long run. You should agree to pay their closing costs, but also increase the price the buyers pay for your home by the same amount. Let me restate that.
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