Many buyers don’t realize that if you pay their closing costs, you’re giving up some substantial profit on your home’s sale. You should help them realize that fact in your counteroffer. Here’s how you handle the situation. When the buyer submits an offer that includes you paying the closing costs, simply counter with an offer that says you’ll do that. That is, you’ll do it, as long as they agree to the higher price you’re proposing for your home. >SHOWME 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. + We understand this means you would be letting your home go for $17,500 less than you asked for it. That’s a nice chunk of change, and often more than anyone with a brain and a house worth the asking price is willing to sacrifice. + So, you make a more reasonable request. Simply counter by agreeing to pay the $7,500 in closing costs, but only if the bidder is willing to pay the original price of $250,000 for the property. + You’ve reduced your loss to a more reasonable amount at $7,500. + The bidder is still getting a deal, and you’re getting a fair price. (Keep in mind these numbers are only approximations. I’m a real estate agent, not a mathematician. I think you can see the point, though.) Ideally, this approach allows you to come out smelling like a rose, because you’ll 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, especially in today’s economy.
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