is it normal for the seller to sometimes pay part of the buyer's closing costs?

In Selling Property - Asked by Tommy V. - Sep 19, 2011
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Answer(s)

Bill B.
Broker/Agent
West Palm Beach, FL

Yes. It is not unusual for a Seller to pay a portion of a Buyer's closing costs. We see it much more often in residential transactions where the buyer can qualify for a mortgage but doesn't have enough cash on hand to pay for their down payment plus the closing costs; therefore, we are able to "finance" a portion of these costs with a Seller credit on the HUD. In commercial transactions, it is less common because the buyers are usually more well-funded. It does make sense in cases where the Seller chooses the closing agent, because the costs associated with closing a transaction can then be the responsibility of the person who is choosing that escrow vendor. At the end of the day, it's all part of the negotiation process and will simply affect the Net purchase price.

Sep 20, 2011
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Chris R.
Broker/Agent
Denton, TX

Such does happen - more often in residential but is entirely negotiable between the parties in any transaction to get the deal done - if both parties are motivated to do a deal "out of the box" - then a deal can get done with a little creativity.

Sep 20, 2011
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Rick L.
Broker/Agent
Cincinnati, OH

It's done quite frequently in commercial transactions I am associated with, especially when it involves investment or income producing property. Every dollar saved by purchaser in aquisition costs raises the return on investment. I incorporate as much savings as possible when representing a Buyer. The ROI is crucial.

Sep 20, 2011
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Wanda B.
Broker/Agent
Morrow, GA

Yes, in most transaction whether Residential or Commercial the seller will contribute towards buyer's closing costs.

Oct 1, 2011
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Mary R.
Broker/Agent
Lexington, KY

Yes, we see it often in Kentucky. It helps to get the deal closed if the seller is willing to assist with some closing costs.

Nov 6, 2011
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