Please note that (a) the home will have to appraise for the amount of the contract, (b) based on the type of mortgage you are only allowed to ask for a certain amount of closing costs, and (c) the owner and/or lender will be looking for what they are going to net from your offer.
Lets say that you want to offer $100,000 for an REO; just make it $103,000 or $104,000 and ask for Closing Costs to be paid by Seller.
Normally, the Banks do not want to lose and more money on a house by Repairs, Inspecitions, or Closing Costs. But they are realistic to creative investing.
That said; if you have the money for Closing Costs, don't do this!
It complicates the offer and might lose the house for you. You want your offers very simple; you want the Bank to want to accept yours over everyone else's. Don't get hung-up over Closing costs.
Good luck and May God bless
You may also consider new construction. Stanley Homes pays $4,000 towards buyers closing costs and you may also be eligible for down payment assistance (bond money). Please call me for the details.
New Home Consultant
Stanley Homes, Inc.
Realtor, Watson Realty Corp