How Do You Get the Closing Costs of Your New Home Paid by the Seller?


Quick Answer

To get the seller of your new home to pay your closing costs, include the request to that effect in an appealing offer on the home. However, your loan may limit the amount the seller is allowed to pay toward the buyer's closing fees.

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Full Answer

Before asking for closing costs, check with your lender to determine how much the seller can pay. The guidelines vary depending on the type of loan you get. Many loans allow the seller to pay a certain percentage of the selling price.

Buyers generally ask the seller to pay for closing fees as part of the written offer. The fees become a condition of buying the house. The overall offer needs to appeal to the seller to increase the odds of the seller agreeing to the terms. This may mean offering the full asking price instead of entering a lower offer. Because the seller gets more on the sale, he may be more willing to pay the money upfront toward closing costs.

The current housing market plays a role in how likely the seller is to pay the buyer's closing costs. If houses are selling quickly or the local market options are limited, the seller may receive multiple offers on the home. If you ask for closing costs while another potential buyer doesn't, the other buyer may look more appealing. Working with your real estate agent to create a realistic and appealing overall offer increases the chances of the seller accepting your offer.

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