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What To Do When Your Buyer Wants You to Cover Closing CostsDecember 14, 2018
Say that you received an offer on your home, but your buyer is asking you to cover all the closing costs. What are your options in this type of situation? You generally have three choices: accept, reject, or respond with a counter offer. If you’re confident that you are in an accelerating market and that your home is in fact marketable, you could simply reject the offer and wait for a better one to come along. However, if you want to work with the buyer to reach a common goal, then you will need to write up a counter offer.
Whether it’s accepting an offer or negotiating a home sale, your decision should not be reactive. In other words, you should think through your options thoroughly.
Deciding to Accept or Decline an Offer
For instance, before you decide to cover all the closing costs, you want to make sure that no other buyer will beat the offer. If you find that the offer is reasonable, then you can accept the terms with no changes. While closing costs can be considerable, they do not necessarily have to deter you from accepting an otherwise appealing offer. In other words, if the buyer is willing to accept your asking price that is substantially higher than what you paid for the home, covering the closing costs may still leave you with a nice profit and return on your investment. In such case, assuming there is no better offer, it might make sense to accept and sign the offer as is. Conversely, if you decide to decline the offer, then you want to make sure you have others lined up.
Countering an Offer: Negotiating a Home Sale
In terms of negotiating a home sale, there are a variety of factors to consider. For example, the condition of the market, your situation, and the property itself can all play a role in determining how much leverage you have. For example, if the buyer asks you to pay all the closing costs, then you have to ask yourself what kind of market you are in. If you’re in a buyer’s market with fierce competition, then you might have to concede to the terms of the buyer’s offer. However, if you are receiving multiple offers, then you could write a counter offer to pay some, but not all, of the closing costs. You could also agree to cover the costs with stipulations of your own.
In any case, negotiating a home sale is by no means a simple task, so the expertise and insight that a real estate professional can provide is an invaluable resource. If you find that you are unsure of what to do after receiving an offer, it is helpful for you to consult with a seasoned real estate agent. For more information about negotiating a home sale, contact us today! One of our Better Homes and Gardens Metro Brokers real estate agents will be more than happy to assist you with your home sale!