A final method for lowering closing costs is to negotiate for the seller to pay them. Unfortunately, many home buyers, sellers and first-time real estate agents are also sometimes unaware of this option.
Moreover, seller-paid closing costs are often tax-deductible for the buyer (that's correct), while reducing the capital gains calculation for the seller. This is often called a "seller subsidy" or "seller closing contribution." Either way, it's additional funds working in the buyer's favor.
For example, Lisa has found a home, priced at $100,000, that she wants to buy. Atlas Mortgage is willing to provide her with a no down payment loan, provided that she can cover the closing costs of $3,000 and $1,200 in reserve requirements. Lisa has excellent credit and income; however she only has about $1,300 in the bank.
Never one to give up quickly, Lisa negotiates with the seller that she will accept their asking price of $100,000, if they will agree to a seller subsidy toward closing costs of 3%, or $3,000 in this case. Both parties close happily: the sellers basically receives the net price they realistically expected (if not more) and Lisa buys a home with practically nothing.
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The dynamics of investing can be very emotional and stressful if not properly managed. When you are aware of what is all involved you give yourself the power to avoid those situations or at least manage them effectively. That will make your investments more exciting, rewarding, and enjoyable. Those positive factors will only lead to greater success in all that achieve with investments and life.