Search the MLS for Active Adult Homes in Monmouth County, by Bunny & Art. (732) 598-7700
Paying the buyer’s closing costs can set your house apart.
Are you having trouble selling your home? Is there a lot of competition in your price point in the area? Here’s an idea that may help.
Some buyers, after purchasing her home, are cash poor. Many of these buyers can afford a slightly larger mortgage payment, but they really would like to have some cash available to make the upgrades that everyone wants to make when they purchase a new home. They may want to update the kitchen, the bathrooms, do some landscaping, replace rugs or possibly install hardwood floors. I think you get the idea of upgrades that buyers want to make when they move into a home. They want to make it theirs.
So how can we help them, and at the same time make your house more appealing to them? Here’s an idea that we have used in the past. Offer to pay closing costs. When purchasing a home, buyers need to not only come up with the down payment, they need to get the mortgage, but they also need closing costs. These days closing cost can easily be $8,000 or quite possibly more.
What if there were a way for them to keep that $8,000 in their pocket and instead have it added to their mortgage? It wouldn’t mean too much $35 to $40 per month extra to cover an eight thousand dollar increase in the mortgage. Most people should be able to swing that. So if you pay the closing cost, they will have that $8,000 in their pocket and it’s added to their mortgage payment.
Would this make your house seem more appealing to a buyer? Quite possibly. So does this mean that you need to take $8,000 less for your home when you sell? Not necessarily. Many sellers have some negotiation room in their asking price, they will reduce the price somewhat from the asking price. Here you would just be reducing the asking price a little less then if you weren’t offering to pay closing costs.
This could be the trick that would allow your house to stand out from the competition.