Make the Buyer pay the Seller’s Closing Costs

sebfreyCommentary

Make the Buyer Pay the Seller's Closing Costs

One of the major drawbacks to real estate as an investment is that it’s not a liquid asset. You can’t turn a house into a pile of cash with the click of a mouse, and when you do sell, it is generally pretty expensive to do so. So wouldn’t it be great if there were a way to make the buyer pay all the seller’s closing costs? Including about the biggest closing cost of all: the commission? When you go to sell your home, you’d be well advised to put some money into it before it hits the market, preparing it for sale. You don’t necessarily need to spend a lot of money – just doing the basics like de-cluttering, cleaning, painting, landscaping, and some easy staging will go a long way towards getting the highest price for your home. Now, you could put your home on the market after spending this money, and the possibility exists that it might not sell – but regardless, this is money you’ve spent up-front and will never recover it (unless the home is sold). Typically though, the cost of preparing your home for sale is considerably less than the closing costs: title fees, escrow fee, transfer tax, and of course, the commission. These costs can easily run 5-7% of the total sale price. Now, wouldn’t it be great if there were a way to make the buyer pay the seller’s closing costs? It sure would be! Now, I’m going to let you in on another dirty little secret: actually, … Read More