Seller Paid Closing Cost - How to Make it Happen
Can you get a seller to pay your closing costs in a competitive market? Mike Novak from The Novak Team in Everett on what closing costs really are, what you are responsible for as a buyer and how to find the right strategy to convince the seller of a contribution.
It’s important to understand buyer paid closing costs and seller paid closing costs:
Seller paid closing cost The seller pays way more closing costs than the buyer does. He is responsible for the real estate commission, exercise tax and more – seller paid closing costs are about eight to nine percent of the sales price.
Buyer paid closing cost A buyer will pay prepaid taxes, insurance, lender fees, appraisal reports. We are talking about 2 percent of the sales price here.
How to negotiate for ZERO down
When you are asking a seller to play closing cost, we are mostly talking about covering lender fees.
There are a few different ways to do this:
- Check how long is the house on the market. Depending on the current market situation there might be some wiggle room to convince the seller to pay a certain dollar amount or percentage of the closing costs.
- If the price of the property was reduced during the purchasing process, the seller might be less willing to take over buyer closing cost.
- Another way to convince a seller of taking over your part of the closing cost is to increase the purchase price one dollar for every dollar that you want back for closing costs: For a home price of 400.000 Dollar, you can offer 405.000 Dollar, but ask for 5.000 Dollar back toward closing cost.
We can help if you are curious about how to purchase a home without zero down, no down payment and without closing cost! Get in contact right away, send us a message, call us – our team would be happy to provide you with a personal consultation.