Closing Costs

“As a buyer, it is important to ask for those closing costs upfront if you can get them. Often that is money you will need to bring to closing that you might not already have. You are already paying for the down payment, the remainder of the closing costs, and all that is associated with moving. If you can get a seller to contribute, their only concern will be with their net profit. Their bottom line. They might ask you to raise the offer price a little bit but they will be willing to give you those closing costs upfront.” –Andrea Nappier, Licensed Real Estate Agent

Negotiating An Offer With Closing Costs

If you’re purchasing a home, especially if you are purchasing your very first home, then getting closing costs paid might be a huge weight off your shoulders. Unlike your loan amount, the closing costs are monies you have to bring with you to closing, cash out of pocket we often call it. If you don’t have a hefty savings account, it might be wise to try to get the seller to pay for the closing costs. Here in St. Louis, MO this is a common practice and sellers should be open to the idea. If it’s a seller’s market however, don’t expect to get a large price reduction in addition to the closings costs. Think about what is more important to you, if it’s saving money at the closing table then factor that in to your offer, giving a little more on the purchase price in order to protect the seller’s net.  If you’re more focused on the long term financing of your loan and wanting to save money on interest, then pay your own closing costs and ask for more money off the price of the home.

In real estate, most things are negotiable, Consult with your agent on the best possible way to present your offer to create a win-win solution and get you the home of your dreams.

Article Written By: Andrea Nappier, a licensed Real Estate Agent at STL Real Estate. Andrea works with clients who are buying or selling homes all over St. Louis and St. Charles counties. If you are thinking of purchasing a home soon, call Andrea for a full explanation of the process and be on your way to home ownership!