How to Avoid Closing Costs When Buying A Home

I want to make it abundantly clear: there’s no getting out of paying closing costs entirely. That said, you don’t necessarily need to be the one to pay them. If for nothing else, it’s entirely possible to negotiate for the other party to pay them instead. Take the aforementioned VA loan for example. “If you have little or no funds available for closing cost, let your real estate agent know that you are purchasing your home with a VA loan. Your agent may be able to request that the seller pay for some or all of your closing costs,” according to militaryvaloan.com.

Almost everything is negotiable in the world of real estate investing, not excluding closing costs. While it may be hard to convince the seller to pay the closing costs on a property, it’s not impossible. That said, there are a few things you can do if you would like to avoid paying some of the most common closing costs. If you plan to ask the other party to cover some of the closing costs, try some of the following tricks to tip the scales in your favor:

• Present A Strong Offer: The easiest way to get the other party to cover closing costs is to present them with a strong offer. The idea is that the offer is so attractive that they will want to do whatever they can to accommodate the purchase. It is worth noting, however, that stronger offers don’t necessarily mean more money. Sometimes it’s as simple as offering cash. Truly great offers make less work for the seller. Therefore, in the event you are able to make the transaction more “convenient,” there’s a chance the seller will cover the added costs to facilitate the deal.
• Offer A Quick Close: Truly great real estate deals favor both parties. Therefore, if you want the seller to offer to pay closing costs, you’ll have to make a concession elsewhere. Try offering the seller something they will appreciate in return for covering the costs. Most sellers want to close a deal as fast as possible, so try giving them a shorter closing window, if possible.
• Make Fewer Demands: No seller appreciates too many demands. As a result, the fewer demands you make, the more likely the seller will be to cover the closing costs. Again, you need to give the seller a reason to cover the costs. If you can convince them that covering the closing costs is in their best interest, you may find yourself with a lower purchase price. Try limiting any contingencies you may have had in mind, as they are only cumbersome for sellers. Without any obstacles, sellers are more likely to cover closing costs — especially if it means the deal will be sure to close.