Question #1 - Why Should a Seller Pay a Home Buyer’s Closing Costs?
Answer #1 - BECAUSE YOU WANT TO SELL THE HOUSE !!!!!!!!
Question #2 - Should I pay Buyers Points to get them a Lower Rate??
Answer #2 - YES. See the Answer to Question #1
This post is not saying that you should give your home away. I am a lender and I find in many cases buyers need cash in today's times to allow them to purchase homes. If as a Seller you want to sell your house, you need to work with any buyers that are interested in purchasing your house. BUT, I don't want to give my house away.
Again, this post is not saying you should give your home away. It is pointing out that the sale of a home is a business transaction that you need to look at the Numbers and make your decision based upon the numbers. BUT, Nobody paid my Closing Costs when I bought my house. Today is not yesterday, as a Seller, I believe you can not sell your home for as much as you could have sold it for 3 years ago!!!!!!!!! Today, many buyers either need or want assistance with their closing costs. If you refuse to pay buyers closings costs you will eliminate those buyers of the pool of potential buyer. When it comes to the buyers that just want assistance, understand that if you refuse to negotiate with them, you will lose them from your pool of buyers. Remember you want the largest possible pool of buyers to look at your home and make offers. That has the best chance of getting your home sold and understand you want your home sold and the buyer wants a particular rate of interest on their loan.
So what do you do???? Consider two offers on your home. One offer is for $95,000. The other is for $100,000 with the buyer asking for $4,000. Which offer would you accept? If given the choice of only accepting one of the two offers, I would take the second offer because it would give me $1,000 more.
What if I don't want to accept the $95,000 offer or the Net offer of $96,000? Lets say you want $100,000, why not count the first offer back at $100,000 or the second one at $104,000. Either one gives you the $100,000 you want!!!!!
This offer was inspired because recently two buyers made offers requesting assistance with their closing costs. The response they got were the two highlighted in this post. Both buyers found different homes where they got the assistance with their closing costs that allowed them to complete the transaction at the rate of interest the wanted or needed.
Please understand that buyers and realtors are not asking you to give your home away, they are just trying to bring a buyer to you and for you to sell your home. They want to create a WIN/WIN.
Just my .02cents as a lender.
Words for buyers, Shop and Compare Closing Costs to save yourself money. Not all lenders offer the same rates of interest or closing costs. Discuss with your lender your wants and needs.