How to Get the Seller to Pay Full Closing Costs
Try paying full asking price for the home. Remember, that sellers are not obligated to pay your closing costs. It’s a nice gesture on their part, and they only do so because it helps sell their house quickly. They don’t do it because they woke up in a good mood that day.If you want to make this happen, you must get on the sellers good side.
When writing your bid or offer for the house, talk to your agent about offering the full asking price. Sellers expect bidders to offer a lower price for properties. Thus, many sellers pad the asking price to give themselves a little wiggle room. So, if you were to offer the full asking price and request closing costs assistance, there’s a good chance the seller will jump at your offer and comply with your request.
If the seller has already purchased another house and needs to move quickly, negotiate closing cost assistance in your contract and agree to a quick closing. This method works well with motivated sellers who need to get out from under the mortgage loan quickly. Some may be willing to pay for closing costs even if that means taking a lower profit or even no profit from the sale. You’d be surprised, and its worth a shot.
On average, it takes 30 days to complete a mortgage loan. But if you’ve already secured your financing and you’re ready to move, you can close on a mortgage loan in as little as two weeks. Get pre-approved before agreeing to a quick closing, and have cash ready for the home inspection.
Home sellers aren’t looking to spend a lot of money updating their properties before selling. They prefer to save this cash and put the money toward their down payment on a new place. Therefore, you may be able to get a seller to pay your closing costs by accepting the house “as-is.” If you request excessive demands, you may miss the opportunity to receive assistance wtih closing costs.
In some cases, sellers cannot pay your closing costs. Between Realtor fees and using the proceeds from the sale toward a down payment on their new home, there’s often little left over. Try seeing what the seller to see what they can afford to offer, and see what you can afford. Communication is key, and it is possible that you will both be flexible and meet in the middle.
If you still cannot get the seller to pay your closing costs, ask your lender to include all or a portion of the closing costs in your loan. For example, if the seller can only pay a small percentage of your closing costs, your mortgage lender can roll some of the remaining fees into your mortgage. This will increase your monthly payment.
If the buyer still will not pay your closing costs, recognize that it doesn’t have to make or break the deal. After you have exhausted all resources to try, see if you can still afford the home, or see if you lender will give you a little more, so that you can afford the home.