“I had to pay my own closing costs when I bought…”
Everyone knows that real estate transactions almost always involve some degree of negotiating between buyer and seller. Buyers have been aided dramatically by low interest rate mortgages and the attendant low payments, but they may not have enough extra cash to comfortably handle both the down payment and mortgage closing costs on their new home, so they are often asking that sellers contribute funds to cover the latter item. In return, buyers are often willing to pay a higher price for the home for reasons mentioned above in return for cash at closing from the seller. From the seller’s standpoint, the bottom line proceeds should be the important item and should be the sellers focal point in negotiations. In other words it shouldn’t matter to a seller HOW an acceptable bottom line result is obtained, only that it has happened. There are both mathematical and practical concepts that make cash at closing highly desirable for the buyer,even in the face of a higher home price, and may be the difference between success and failure in the negotiations.
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