Traditionally, home buyers have paid closing costs out of pocket. Paying thousands in fees and other miscellaneous costs once seemed like the only option, however, times are changing.
Many of today’s home loans can be customized allowing for homebuyers to choose the option that best fits their needs. If you’d like to get your closing costs reduced or completely paid for, here are a few options to explore.
1. Offer a full-price bid.
Many sellers expect homebuyers to offer a lower bid than what they are asking and may up the selling price a bit. If you’re really interested in the home, make a full price offer and request assistance with closing costs. Sellers are more likely to agree.
2. Keep your demands simple.
If a homebuyer decides that they want the seller to cover the closing cost, it’s best to buy the home as-is. The only exception would be items that don’t pass the home inspection. But try to avoid requesting any unnecessary value-adds or upgrades.
3. Close quickly.
On occasion, a bid will fall through. It happens and the last thing a seller wants is to start the selling process over. To avoid a prolonged closing or a bad bid, a quick close is an appealing option. Many motivated sellers will do whatever it takes to make the sale so covering closing costs may not be an issue.