You should pay those closing costs. Wait! Before you decide I’ve lost my marbles and toss this book out the nearest window, allow me to show you how paying those costs will work for you in the long run. You should pay the closing costs, but you should also increase the price the buyers pay for your home by the same amount. Let me restate that. If the only thing preventing you from selling your home is the out- of-pocket cost for closing fees, and you’re able to pay it, it would be beneficial for you to do so. You should recoup that money by raising the price on your home by the same amount. You see, buyers might not be able to come up with extra cash for closing costs, but they often can borrow more money with their loan. 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. 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,
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