3 Ways to Deal with Seller Closing Costs

Seller closing costs may be assessed in addition to lender closing costs to drive up the cash required upon purchase of a home. Though the costs can be relatively small, 1 to 3 percent of the home's price, these requirements add up once down payment is factored in. The best approaches use negotiation to reduce these fees. 

#1 Negotiate in Home Price

Many buyers think they should try to negotiate for a home price lower than listed. However, you can use items like closing costs in order to make the deal successful without lowering the actual price. For example, you may offer the list price but request the seller covers all closing costs.

#2 Ask for Exchanges

If the seller wants you to pay the closing costs, you can ask for other exchanges. For example, negotiate to keep a portion of the furniture, have damages in the home repaired or even have the seller pay to have the home repainted or redecorated.

#3 Seek Grants

There are some local grants that can assist you in covering closing costs. These are typically restricted to first-time home buyers. Contact your local Federal Housing Administration office to ask about grants in your area. You will not have to repay the funds if you meet requirements.

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