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 hard 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