Offering or at least being willing to pay your buyer’s closing costs increases the number of potential buyers when you are selling your home – and increases your odds of selling the property more quickly.
There are a lot of home shoppers out there who are struggling to come up with down payment, moving costs and closing costs. Offering or at least being willing to help with closing costs could increase your potential buyer pool by 25 percent or more depending on your location.
Why do you want to pay for the buyer’s closing costs? Because paying your home buyer’s closing costs could mean selling your home faster and putting more money in your pocket. That’s all.
Even if you’re in an area where some buyers have plenty of cash on hand, you might find that those buyers can still be ha
rd to please. They may not be looking for the discount that a real estate investor is seeking, but they often want to get a better deal because they know they’re stronger buyers. You’ll see this when you look at the recent comparable sales in your neighborhood.
If your neighborhood is attracting young families shopping for their first home, then the comparable sales data might show that all your neighbors are paying closing costs when they sell.
The author correctly states that there are very few absolute rules in real estate – and maximizing your net is the name of the game. It may seem unfair or it may sound counter intuitive that paying your buyer’s closing costs can increase your net, but it just might.
Source: The Washington Post
Hi, I have been a realtor in Georgia and Florida now licensed in Arizona. I started working around real estate age 19, in construction buying and selling houses. For a while was a Licensed realtor with a commercial development out of Georgia. Now at 73 I just work for myself. Buying and remodeling selling one or two houses within a year or so.
I have a house going on the market in late summer. Priced a $270,000.
I operate with cash only so there is no obligations on the property.
Often I have had offers submitted in the traditional way and end up with some quirk for me to help the buyer.
On the next listing I would like to have the requirement for the buyer submit to me with the purchase contract the following:
Pre-qualification of approval
Recent credit report
Certified funds (bank statement)
I just had a mortgage originator tell me on the phone that a prospective buyer was “A-1” paper!!! On the phone. There have been too many to mention other stupid things mortgage people have told me. I now want to verify up front their ability to purchase.
I do not ever want to take an investment property off the market (pending) again.
So what is your opinion of my way of marketing the property?
O by the way “A-1” paper is a size of paper used internationally in copiers and I laughed at the originator and said we would not be sending the application through the copier and laughed at him.
Thank you for your opinion~Zeke
Zeke-
It was great speaking you today – I hope I can help you with your next transaction so you can avoid these pitfalls!