How to Have the Seller Pay Your Closing Costs
In a buyer’s market, meaning there are more homes for sale than people to buy them, such as we have seen since 2007 it can be very common to have a seller credit up to 3% of the purchase price towards the buyer’s closing costs.
This means if you are buying a house priced at $400,000 the seller can actually pay up to $12,000 towards closing costs in both FHA and VA financing at the closing table. That basically knocks the price of the home down to $388,000!
How to write this into the purchase contract is simple. Ask your real estate agent about the value of the home, time on the market and if offers are coming in before writing your offer. This will give you a good idea as to how motivated the seller might be to give you a credit.
Then your real estate agent will write in the contract that the seller will pay 3% towards non-recurring closing costs.
If you or your agent has questions call me. I have successfully closed numerous transactions utilizing the seller credit, helping first time buyers get into a new home!