Asking the seller to pay closing costs is a common request made by home buyers, especially in markets where the cost of buying a home is high. However, whether or not it's a good idea to make this request depends on several factors.
One of the main factors to consider is the state of the market. If the market is a buyer's market, meaning there are many homes available for sale and demand is low, it's more likely that the seller will be willing to pay closing costs in order to make the sale. On the other hand, if the market is a seller's market, meaning there is high demand and low inventory, it may be more difficult to make this request.
Another factor to consider is the price of the home. If the home is priced at or above market value, it may be more difficult to make this request, as the seller is less likely to be willing to pay closing costs. However, if the home is priced below market value, it may be more likely that the seller will be willing to pay closing costs in order to make the sale.
Finally, the length of time the home has been on the market is another factor to consider. If the home has been on the market for a long time, the seller may be more willing to pay closing costs in order to make the sale. On the other hand, if the home has only been on the market for a short period of time, the seller may be less willing to make this concession.
What Should You Keep in Mind When Making This Request?
When making a request for the seller to pay closing costs, there are several things to keep in mind in order to increase your chances of success.
First, it's important to be upfront and honest about why you're making this request. Explain that you are trying to minimize your expenses in order to make the purchase, and that you believe it would be mutually beneficial for the seller to pay some or all of the closing costs.
Second, it's important to be realistic about what you're asking for. Don't ask for the seller to pay all of the closing costs, as this is likely to be a deal breaker for many sellers. Instead, ask for a portion of the costs or a specific amount that you believe is reasonable.
Third, it's important to be prepared to negotiate. If the seller is willing to pay some of the closing costs, this might be the best option for you. Getting something, rather than nothing is sometime the best course of action.
Asking the seller to pay some or all of a buyer’s closing cost will depend upon many different factors. It is always good to take the advice of your Realtor and Mortgage Broker, as they are the professionals you hired to represent your best interest. Think about all of the options and weigh the pros and cons of each one.