Do you asks seller to pay closing costs?

Question

As I understand it, a purchase price can be as much as 2% over the appraisal value. And I've heard that some people make an offer higher than asking price with the understanding that the seller will, to reciprocate that higher offer, pay some/all of the closing costs.

This basically lets the buyer free up some cash and technically finance the closing costs.

Has anyone done this before? Is it a smart strategy?

Thanks

This basically lets the buyer free up some cash and technically finance the closing costs.

Has anyone done this before? Is it a smart strategy?

Thanks

Marty Gold · Answer

ok. Thank you

Russell Brazil · Answer

Just depends on the situation. Sometimes Im making the offer to someone I know is only focused on the sales price, so I dont discuss the subsidy, and just have it on the page of my contract that indicates it. Sometimes Im just negotiating the price, then I have the discussion after we have agreed on the price...say $400k, and I say well now can we structure it so its $405k with $5k back.

Marty Gold · Answer

Do you make your initial offer with these contingencies?  Or is this something you discuss after they agree on your offer?

Bruce Lynn · Answer

Are you using financing?  If so you want to check with your lender to see how much they will allow.

Also the home will have to meet appraisal.  So that means you offer 3% over the asking price, the lender's appraiser will have to agree to the price you offered as the value of the home.

Russell Brazil · Answer

I do it all the time. I always try to structure my offers so there is some sort of seller subsidy to keep more cash in my pocket.