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Elizabeth Weintraub

Crediting Non-Recurring Closing Costs to the Buyer

By May 8, 2013

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Not every buyer has funds to pay for closing costs, so it's not odd to ask a seller to help, especially with the buyer's non-recurring closing costs.

What's kind of interesting is if a seller agrees to pay, say, an amount equal to 3% of the sales price toward closing costs, sometimes buyers think if their closings costs are less, the sellers should just pay them the difference. It doesn't work that way. If the closing costs are less than the amount of the credit, it's to the seller's advantage, not the buyer's. To avoid confusion, a seller might want to agree to pay UP TO 3% of the sales price toward non-recurring (and maybe recurring) closing costs, or, whatever percentage is agreeable between the parties.

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At the time of writing, Elizabeth Weintraub, DRE # 00697006, is a Broker-Associate at Lyon Real Estate in Sacramento, California.

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