Hello realtors. Here we are talking about Seller Paid Closing Costs again.
I keep bringing this topic up because it’s so important yet often misunderstood.
Raise your hand if you think that if a buyer asks for seller-paid closing costs, it’s because they’re desperate. Is that really what you think?
If so, let’s work to dispel that stigma as a mathematical tool we have as lender. But, hey, this isn’t about buyers being desperate or not having the money. It’s about them being as smart and savvy with their money as you would want your buyers to be smart and savvy with their money.
So when a buyer asks for seller-paid closing costs instead of a price reduction, it’s that they want to leverage this fabulous tool in our industry. And you know, it has four times the impact on their financial picture. So reducing a purchase price by $15,000 versus doing a seller credit for $15,000 is four times better for their financial picture.
If you’re on the buyer’s side, understand and tell the listing agent that this is not about desperation. Seller-paid closing costs are about math. And if you’re on the selling side, oh my god, bring this to the table or even start your listing saying there will be seller pay closing costs, it will attract so many more buyers, and we’ll open up doors for them to be able to be more competitive on your listing. If you have questions about the math of it, please reach out. I’m happy to walk you through it soon.