Real Estate Investing Basics

Techniques for Covering Closing Costs

Expertise:
13 Articles Written
Although the days of getting cash credits towards closing costs are seemingly coming to an end with the tightening of mortgage regulations, there are still viable ways to accomplish that goal. Both Non-Agency and Dual-Agency arrangements can be used for this purpose. Often buyers mistakenly believe Dual-Agency is created when buyers approach a listing agent [...] View the full article: Techniques for Covering Closing Costs on The BiggerPockets Blog. This content is Copyright © 2017 BiggerPockets, Inc. All Rights Reserved.

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    Steven Boorstein
    Replied over 12 years ago
    Good article. I have never used this approach to help pay closing costs. I didn’t realize that agents were open to this and think that agents who do this are promoting an ethical practice. In essence, it sounds like they are collecting the same commission whether they are the sole agent or an exclusive buyer’s is also involved. Knowing this, I’d be interested in approaching listing agents directly to negotiate deals in the future. Steven Boorstein Landlord Business Insider
    Michael Creel
    Replied over 12 years ago
    It does work perfectly well as long as no issues arise over price or repairs. If you approach an agent for a deal like this and at the same time want to beat the seller to death on the price, obviously it won’t fly. Many agents will refuse to do it fearing that they cannot be loyal to two parties at the same time; it is a fine line, but I’ve had no issues with it thus far. As long as your honest with both sides and give fair opinions, you do fine (as an agent). It saves both sides a lot of money and the agent makes the exact same for just a little more work. Most agent would read me the riot act for even writing this article! I argued with a few prior to submitting. In the end they admit they have done it, and it worked fine; it’s just not something we are supposed to encourage out of loyalty to fellow agents. As I said in the article, its not for everyone, or every deal, but it does work well when used at the right time. Good luck.
    London dentist
    Replied over 12 years ago
    Its really a Good article.I never used this approach to help pay closing costs. Thanks