Because of the mortgage crisis, loans of the past are gone. These days you need at least 3.5% for the down payment plus closing costs! All too often buyers make the mistake of asking sellers to pay for those closing costs up front. It’s like someone buying a car from you but that person also asks you to pay for car insurance for a year. You’ll most likely say no.
Over the past 5 years as Louisville Realtors at RE/MAX Properties East, we’ve sold about 500 homes and for several years (as 100% financing disappeared) our strategy has been to find the sellers lowest acceptable price without speed bumps derailing the negotiations. A speed bump is anything added to a contract (like closing costs, painting a room, building a deck). We’ve found any speed bump takes the attention of the seller away from giving us the best price and directs it to something a seller hates: costs or paying fees for someone else.
I can tell you in EVERY CASE when one of our sellers gets a contract asking them to pay closing costs the first statement out of their mouth is “If the buyers can’t afford the house why are they buying it” I can spend hours trying to explain why the money is needed but the fact that a buyer needs the money is ALWAYS in the sellers head and many sellers can’t get around it.
We’ve been very successful getting a seller to accept an offer then ask the sellers to pay a specific about of closing costs and increase the price of the home by that amount. We also tell the seller that the commission will be based on the original sales price.
Remember, there are thousands of people who don’t understand this basic fundamental art of negotiation. Sellers don’t want to pay for someone else’s closing costs. Our method of negotiating works 100% of the time because it’s exactly what a seller wants, a clean offer.
Bob Sokoler is a member of the Medley Sokoler Team at RE/MAX Properties East. His team is ranxed 4th in the Remax Region. Bob is personally ranked 7th amoung the almost 4000 realtors in the Louisville Kentucky area. For more information visit www.weselllouisville.com or www.louisvillehomestoday.com . To see some of the teams videos head to www.louisvillehomestv.com
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