Using Seller Concessions to Pay Closing Costs
Inventory continues to open up in the housing market as the market continues to shift toward buyers. Here is one small tip to help you keep money in your pocket if you’re looking to buy a home. When sellers are getting 10 offers on their home, they control the transaction. But when offers slow down, buyers can ask for more incentives. One of the most valuable incentives is called “seller concessions” or essentially a credit from the seller to pay for closing costs. For example, let’s say you are putting down 5% on a $400k home – That’s 20 thousand dollars. Then you factor in closing costs, that’s probably another $5 grand. Your total here is $25k out of pocket. You can haggle with the seller to drop the price a little, but your out of pocket will be a fraction lower. Instead, you can offer $400k with $5k in seller concessions which covers all closing cost and you just owe the down payment at closing which cuts your out of pocket by 20%. This is a great strategy to keep more money in your bank account where it belongs! For more tips, give us a call today.