Should I Pay the Closing Cost of the Buyer?
A lot of people ask me if they should put their home on the market announcing in their MLS listing that they will pay the buyers closing costs.
In this article we will talk about when you should let your buyer know that you are willing to pay them.
What are closing costs? When you pass the title of your home to your buyer through an executed contract it is called the "closing".
It is common place for there to be costs that come with this home buying transaction, that at are more than the actual selling price of your home.
These costs are usually paid at the time that the closing takes place and are called closing costs.
These costs come from things like attorney fees, title service cost, survey fees, mortgage application fees, appraisal fees, pre-paid property insurance fees, home warranties.
Why people offer to pay the closing costs of their buyers There is a class of home buyer that isn't a real home buyer without someone paying their closing costs.
So depending on the price of your home you can expect that there is a good chance that your buyers will try to get you to pay them.
When Offering to Pay Closing Costs is Okay Some people like to put in their MLS listing that they will pay the buyers closing cost.
The reason they do this is because they think it will attract more buyers to see their home.
After selling over 2,000 homes, I can tell you that this does little to nothing to attract new buyers into your home.
In fact putting that in the MLS sheet can harm your negotiations.
The Truth about Your Buyers If your buyers have a realtor then they are going to assume that negotiating for the seller to pay the closing cost is part of the deal.
But if you announce up front that you are going to pay them it becomes a gift to everyone will expect even if they don't need you to pay it.
Then your buyers will try to negotiate something else on top what you have already gifted them.
When normally if they need the closing cost covered they will negotiate for that alone.
If you want to do anything to get new buyers in your home.
Price your home at the best price you can.
Then put in the MLS that your home is priced to sell.
This will help your home stand out in the MLS as a top choice.
In this article we will talk about when you should let your buyer know that you are willing to pay them.
What are closing costs? When you pass the title of your home to your buyer through an executed contract it is called the "closing".
It is common place for there to be costs that come with this home buying transaction, that at are more than the actual selling price of your home.
These costs are usually paid at the time that the closing takes place and are called closing costs.
These costs come from things like attorney fees, title service cost, survey fees, mortgage application fees, appraisal fees, pre-paid property insurance fees, home warranties.
Why people offer to pay the closing costs of their buyers There is a class of home buyer that isn't a real home buyer without someone paying their closing costs.
So depending on the price of your home you can expect that there is a good chance that your buyers will try to get you to pay them.
When Offering to Pay Closing Costs is Okay Some people like to put in their MLS listing that they will pay the buyers closing cost.
The reason they do this is because they think it will attract more buyers to see their home.
After selling over 2,000 homes, I can tell you that this does little to nothing to attract new buyers into your home.
In fact putting that in the MLS sheet can harm your negotiations.
The Truth about Your Buyers If your buyers have a realtor then they are going to assume that negotiating for the seller to pay the closing cost is part of the deal.
But if you announce up front that you are going to pay them it becomes a gift to everyone will expect even if they don't need you to pay it.
Then your buyers will try to negotiate something else on top what you have already gifted them.
When normally if they need the closing cost covered they will negotiate for that alone.
If you want to do anything to get new buyers in your home.
Price your home at the best price you can.
Then put in the MLS that your home is priced to sell.
This will help your home stand out in the MLS as a top choice.
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