Closing Costs: Should You Agree To Pay Them?

Dated: July 24 2021

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Closing Costs: Should You Agree To Pay Them?

 

Many of the closing costs on the sale of a home usually fall to the buyer, who is responsible for paying a variety of fees in order to finalize the sale.  In some situations, a seller may offer to help with these costs or even cover them in full in order to help complete a sale.  This isn't always a necessary or even appropriate move, but in the right situation it can sell a house faster.

 

When To Offer To Pay Closing Costs

 

As a general rule, a seller should consider offering to pay the closing costs when they really need to get the home sold fast. Offering such an incentive may mean that your home sells faster and more easily than had you not offered.

 

You might also offer to pay closing costs if you have a lot of equity and will make a good profit off the sale.  In a market when it is harder for buyers to get loans or come up with down payments, sometimes a seller who is motivated and has the extra equity to handle closing costs can make the difference between buying a home and waiting to save up even more money.

 

When To Let The Buyer Pay

 

In most cases, if the topic isn't brought up in the negotiations, you can simply allow the buyer to handle the closing costs and not worry about it. This is the traditional way home sales are handled, and most buyers are aware of it and prepared for it.

 

If the buyer does request that you pay the closing costs as part of the negotiations for the sale of the home, consider whether or not you really want to accept their offer.  If you have a lot of interest in the home and potential for more offers to come in soon, then you can probably safely refuse in your counteroffer.  Odds are good that in such a situation the buyer will back down on the closing costs.

 

Splitting The Costs

 

You may want to consider splitting the closing costs with the buyer in order to save you both some money and get the deal to go through more smoothly.  You can work the details out in your negotiations with the buyer.  This is often a good compromise.

 

Remember that as the seller, you are not required to handle the buyer's closing costs, and the choice to do so should benefit you in some way.  Weigh the pros and cons before making a decision.

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Vicky Gill

I am a Real Estate Agent at Save Max Signature Realty Inc with in-depth experience in the GTA real estate market. I am dedicated to providing the highest level of representation that I can for my clie....

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