What Are Seller Paid Closing Costs?
What are seller paid closing costs?
Denver/Colorado: If you’re wondering what the answer to that question is and how you can get your closing costs paid when you buy a home, I’m going to answer that question for you today.
First of all, seller paid closing costs are simply when the seller of the home that you’re buying pays your closing costs. No matter what, when you obtain a home loan, you’re going to have closing costs in the loan.
Typically you’d have to pay for those closing costs out of pocket in order to buy the house. One of the ways to get those covered is to have the seller pay those closing costs. You might be asking yourself, well how do I do that?
The answer is, your real estate agent has to submit your offer in that manner to ask the seller to pay your closing costs. When they submit the offer, that’s part of the offer to put it in there that they’re going to pay X number of dollars towards your closing costs. If they agree to your offer, then they’re going to pay your closing costs.
Now in today’s market, it’s still a pretty hot real estate market in a lot of areas. You’re competing with other buyers.
So how can I get my offer accepted if I’m asking the seller to pay for my closing costs?
The answer is, well, there is no clear cut answer, but the market is a little bit less crazy right now. There’s not quite as many offers, especially in the Denver, Colorado area.
We’re not seeing 20, 30, 40 offers on a house. There might be two or three, or maybe you’re the only offer. Therefore, it’s not uncommon to have seller paid closing costs on transactions. Now you may have to raise your offer a little bit when you submit your offer with seller pay closing costs because the seller is going to net less on the home.
For example, you’re offering on a house that’s $400,000- Let’s say you’re going to offer the seller full price, but you’re going to ask them to pay $4,000 worth of closing costs. The seller is only going to net 396. In this example, you may have to offer 404 or 405 with them paying $4,000 in closing costs in order for them to net what they’re looking for, if you want to go in at an actual full price offer.
Above is just a simple example of how to get your closing costs paid by the seller.
If you have questions about that, or if you have questions about how to get pre-approved or how this whole process works, that’s why we are here.
We love answering questions about buying a home or financing a home. Give us a call at 303-670-0137 or email at baxterteam@fariwaymc.com
