Last week I mentioned how to word your request for closing cost credit and it has spurred people's request for more information about closing cost credits. In any purchase there are associated costs. In a home purchase, not only do you need to plan for your down payment, but also your closing costs. These average 1-2% of your purchase price. But did you know there is a way to get the seller to pay these closing costs? An experienced agent will know how to structure your offer to request a credit toward buyer's closing costs, and it can be used strategically to help you get more out of your purchase and bring less cash to the table. In layman's terms it means you’re asking the seller to take less for the home, because you are asking for some of the funds. They will be reducing their net proceeds based on the the total credit you are requesting. The reason many buyers ask for a closing cost credit to to minimize the amount of personal cash they need to use to make their purchase. If you want to use this tactic, make sure to negotiate this upfront. And don’t be afraid to include this in discussion about older fixer-upper properties as well, where you will be needing additional funds after close to do repairs. However, this may not be for everyone. Many buyers choose to not request a credit back, as they view it as increasing their purchase price and loan amount. They calculate that they would rather use their cash, than increase their long term numbers. If you are interested in knowing more about closing cost credits and whether they could be right for you or not, contact me today!