There are various fees associated with buying a home, including the closing costs. You can choose to pay the closing costs or negotiate with the seller to pay them. Unfortunately, the seller might not be as motivated to agree to pay the costs as you would like. If you are faced with paying the closing costs for your home, here is what you need to know.
How Can You Convince the Seller to Pay?
In some instances, the seller might need some convincing to agree to pay the closing costs on a home. There are several ways you can help the seller realize that paying is in the best interests of both parties.
One way is to offer to pay the full asking price for the home. When you are offering to pay the full price, even if it is only a difference of a few thousand dollars, you are showing the seller that you are willing to meet him or her halfway.
You can also avoid making unreasonable or excessive demands of the seller. For instance, instead of insisting on a laundry list of repairs before you take possession of the home, you can cut your list down so that the seller will be able to free up the funds to make repairs.
What If the Seller Still Refuses?
If the seller still refuses to pay the closing costs, you should turn your focus toward reducing the costs. One way is to take the time to review your closing costs and look for possible fees that you can have reduced or eliminated. The lender should be willing to provide you a detailed listing and explanation of all the fees you are faced with paying.
Junk fees, such as processing fees, might be dropped completely if you talk to your lender. If you see a fee you do not understand, ask questions until you do.
You should also look for cheaper home insurance. At closing, your lender will require you to pre-pay your premium for several months. If you can find coverage that is less expensive, you can save on how much you need to pay upfront during closing. Work with an insurance broker to find the best policy for your home.
A real-estate agent, such as one from Krueger Real Estate, can help you pinpoint other ways in which you can save on your closing costs. He or she can also be instrumental in convincing the seller to agree to pay part or all of the costs.