This makes a big difference…

6 Feb 2023

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In a buyer's market, ask the seller for a credit instead of just lowering your offer. A $540,000 home might sell for $490,000, but offering $500,000 with a $10,000 seller credit covers your closing costs and leaves you with cash at closing.

Questions this video answers

$540,000

$490,000

$500,000

$10,000

Closing costs, interest-rate buy-downs, and repairs (examples: new carpet, paint).

Okay, let me show you the numbers on a huge advantage that you have in today's real estate market. Because we've shifted to more of a buyer's market, you now have the ability to get seller credits. Here's exactly how this works and why it's so important. So let's say a property was listed a few months ago for $540,000. But because of the market pullback, you can get this property for $490,000. That's a great deal, right? Not so fast. Before you do that, you should write your offer for $500,000. You can ask the seller to credit you $10,000. Now you can use this money to cover closing costs, interest rate, some repairs like new carpet, paint, etc. So this basically builds the cost into the deal so that you don't have to pay for it out of pocket. Yes, your monthly payment is going to be just slightly higher, but it's a great trade off considering you get to keep $10,000 cash in your pocket at closing.