Buyers Closing Costs
As a Buyers Agent working in Canton MA, Milton MA and surrounding Norfolk County communities, buyers will often ask me if it is realistic to ask the Seller to give a credit for closing costs. Sometimes they think that the closing cost credit is only found in lower priced communities or transactions. However, closing costs can definitely be a part of the negotiations in any transaction. There are two issues to consider.
Seller's Bottom Line: Remember, that the Seller is looking at the bottom line or what they will get at the end of the day. Buyers need to remember that a $350,000.00 offer with a $3000.00 closing cost credit will only net the Seller $347,000.00. It seems obvious but often that piece gets lost. So, always consider the other end of the transaction when figuring out your offer and any requested credits.
Buyer's Consideration: Buyers need to balance their mortgage amount and monthly payment against the need (or desire?) to have a credit at closing to free up cash in hand. Once you have realized that the closing cost credit needs to be figured in to the purchase price, remember that it also figures in to your mortgage amount. In the scenario above, the Buyer's mortgage amount is based on a certain percentage of $350,000 - not $347,000.00. The mortgage would be less than if they just paid $347,000. So, think about what is most important - or necessary - for you to make this transaction work? Is it the monthly payment or mortgage amount or is it funds needed to close?
Remember to consider all of the options and impact to price and payment when deciding whether to make a closing cost credit part of the transaction. It is a viable option is almost any transaction.
For assistance in negotiating the ins and outs of buying a house in Canton MA, Milton MA or a surrounding Norfolk County community, contact your Canton MA Buyer Agent.
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Christine Smith is an Attorney and Exclusive Buyer Agent with over 25 years of experience in the real estate field.
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