Certain home sellers miss out on deals because their math is wrong. Here’s what I mean.
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What do I mean by a “math-challenged home seller?” Here’s the gist. Let’s say you have your home listed for $500,000 and you get an offer for $490,000. That seems like a pretty good offer, right? However, sometimes we get an offer that says “I’ll pay you $500,000, but I want you to pay $10,000 of my closing costs.” Essentially the same price, right?
I’ve had home sellers that would accept the $490,000 offer but refuse to pay the $10,000 closing costs for a $500,000 offer. Here’s why that doesn’t make sense, and why it’s particularly insulting to buyers.
“The final numbers are the same for a seller.”
Typically, the buyer will be getting a loan in this situation, and they will put a certain amount down. They’re trying to conserve their cash by making an offer like the one I mentioned above. Instead of paying 10% of $490,000 for a down payment with another $10,000 out of pocket in closing costs, they say “I’ll pay you $500,000 with $50,000 down and no closing costs.” The out-of-pocket costs are $59,000 versus $50,000 when they ask for the closing costs. The final number that you’ll get as a seller is the same.
If you’re selling your home, don’t get caught up in the closing costs. Do the math and if the offers are the same, then you can decide what to do.
If you or anyone you know is thinking of buying or selling a home, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.