My New Outside Blog: Can You Guarantee I Won't Pay Any Closing Costs?

Can You Guarantee I Won't Pay Any Closing Costs?

"Can You Guarantee I Won't Pay Any Closing Costs?"

This was the question I recently got from a buyer lead.  She stated that she was ready to purchase, and she insisted on not paying any closing costs.  She asked me straight up, 'can you guarantee I won't pay any closing costs?'

I understood where she was coming from.  As a smart buyer you want to negotiate the least amount of money 'out of pocket' not going towards reducing your the amount you will owe on a mortgage.  But I realize that to have this demand and not fully understand the dynamics of each deal made it impossible for me to make such a guarantee to her or any buyer for that matter.  In my experience each deal I have done in metro Atlanta has been very different.

Today for the most part we are still in a seller's market.  Even as we slow down due to the cyclical nature of real estate, we still have multiple offers situations.  Competition continues to be strong in the metro Atlanta markets.  Owner occupant buyers are still competing with investors especially at price points below $200,000.

So any offer that takes away from the seller or causes the seller to have to come out of pocket may be less competitive with other offers for the same properties.  The exception is some new construction.  Many builders are offering wonderful incentives to buyers on new construction homes that can be applied towards upgrades and/or closing costs.  Wilson Park Homes, for example, is offering a $10,000 incentive to buyers to use however they want.

There are many factors that have to be considered when negotiating any deal.  Sellers are different.  Financing is different.  Properties are different.

I will always do my best to negotiate the best deal for any buyer client,  But whether or not you pay any closing costs is dependent on each individual deal.  And I don't know of anyone who can guarantee you will not pay any closing costs.

For help with buying or selling or leasing in metro Atlanta, please call us at 404 907 1646.  Thank you!

    

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Comment balloon 9 commentsJordon Wheeler • September 28 2014 06:31AM

Comments

You make an excellent point;  and for folks who only plan to stay in the property for a few years, they sometimes tend to "forget" when it comes time to sell that those closing costs are rolled into their mortgage and must be paid off when they sell, reducing their net.  

Posted by Susan Haughton, Susan & Mindy Team...Honesty. Integrity. Results. (Long and Foster REALTORS (703) 470-4545) over 4 years ago

It is impossible to guarantee someone else's actions.  We have no control over them and what they will or will not agree to.

Posted by Evelyn Johnston, The People You Know, Like and Trust! (Friends & Neighbors Real Estate) over 4 years ago

That is a well thought out response.  Thank you for the logical response.

Posted by Elite Home Sales Team, A Tenacious and Skilled Real Estate Team (Elite Home Sales Team OC) over 4 years ago

Jordan, it's a breath of fresh air to hear your honesty. So many people say they can guarantee things they can't, and oftentimes it ends up with the deal falling apart. Like you said, every deal is different and you can only do your best to negotiate the best deal for your clients.

Posted by Troy Erickson AZ Realtor (602) 295-6807, Your Chandler, Ahwatukee, and East Valley Realtor (Good Company Real Estate www.ChandlerRealEstate.weebly.com) over 4 years ago

Hi Susan Haughton, yes they do.  Thank you!

Hi Evelyn Johnston, you're right.  Have a great Sunday!

Elite Home Sales Team I appreciate the compliment.  Enjoy your day!

Hey Troy Erickson , I think I lost the client, but I would rather be honest than to lead her on with false promises.  We do our best.  Thanks and best of GREAT success to you always!

Posted by Jordon Wheeler, J W Group Real Estate Sales and Service (The Jordon Wheeler Group) over 4 years ago

"Guarantee" is a dangerous word!  You gave a great answer, Jordon.

Posted by Fred Griffin presently on Leave of Absence, Licensed Florida Real Estate Broker (Fred Griffin Real Estate) over 4 years ago

Thank you Fred Griffin !  A 'guarantee' can come back to bite.  Best of GREAT success to you always!

Posted by Jordon Wheeler, J W Group Real Estate Sales and Service (The Jordon Wheeler Group) over 4 years ago

Great answer!  Here we are a buyer's market so most offers right now are asking for closing costs. But there is no way I would guarentee either. LOL

Posted by Tammy Adams ~ Realtor / Podcaster, A Maricopa Agent who Works, Lives & Loves Maricopa (Maricopa Real Estate Co) over 4 years ago

Thank you Tammy Adams !  Best of GREAT success to you!

Posted by Jordon Wheeler, J W Group Real Estate Sales and Service (The Jordon Wheeler Group) over 4 years ago

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