The Truth About Closing Costs

Howdy! With 17+ years in Houston real estate, I've mastered helping folks buy and sell. Let's tackle your burning questions, especially about closing costs!

Closing costs – the necessary evil of finalizing a real estate deal. They usually hover around 1% to 6% of the home's purchase price, on top of your down payment. So, yeah, it can be a bit of a wallet workout.

Now, about negotiating these costs. The amount is usually set in stone, but there's a bit of wiggle room when it comes to who foots the bill. In a buyer's market, where houses are chilling on the market a bit longer, you might have some leverage to sweet talk the seller into picking up some or all of your closing costs.

Let's chat about the pros and cons of getting the seller to foot the bill. It can be a game-changer, lightening the load on your wallet upfront, making that dream home seem a bit more within reach. But, and there's always a but, you're not getting a free lunch. You're basically agreeing to pay for those closing costs over time through a slightly higher purchase price.

For a real-life example, imagine you and the seller high-fiving on a $400,000 purchase price with $10,000 in closing cost help. Alternatively, you could shake on a $390,000 deal with no closing cost assistance. If you go with the first option, you're effectively adding $10,000 to the overall cost of your home, spiking your monthly mortgage payment and the total interest paid over the life of your loan.

I've been on both sides of the seller-paid closing cost fence. Bagged a sweet deal on my first home, but let me tell you, not every seller is game for this, and your lender has to give it the thumbs up too.

So, my advice to you? Have a heart-to-heart with your FAME agent and a local lender. Figure out the best game plan for your unique situation.

Even if you're crossing your fingers for the seller to pick up the tab, it's always smart to have some budget set aside for those sneaky closing costs.

Hello! I'm Jay Thomas, a REALTOR in Houston, Texas. Chances are you and I share a similar passion, Real Estate! I also have a passion for building businesses, working out, inspiring others, technology, sports, and people. Connect with me on Facebook and Instagram!