Does this make sense... to offer to pick up $3000 in closing costs if I get a full price offer?

Asked by William Gregg, Portland, OR Wed Sep 5, 2012

Hello,
You people are great...such great answers. Here is my second question that I have posted.
I have a mobile home, anchored on cement runners, on an owned 1/3 acre lot...in Oklahoma. Nicely remodeled with new appliances too. Financing will be a little tough since the home was moved more than once.

You folks counseled me to basically not offer a bonus to the buying broker's agent.

But would it be a good idea to offer to pick up $3000 in closing costs for a full price offer? Is this ok, or am I violating some law or norm?

I realize that picking up closing costs is done al the time, but I am wanting to say with a "full price offer". The $3000 would be put toward their loan fees, if any, and the other closing costs. The only thing I know is that someone has told me to put a "cap" on the closing costs, which is how I came up with the $3000 figure, but not sure about the full price offer thing.

Thank you.

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3
Lou Mayo, Agent, Granby, CT
Fri Sep 7, 2012
Mr. Gregg,

Thank you for your question. There are many ways to look at this one my friend. The first is simply that with your offer of full price -$3,000 for buyer’s closing is nice but you are not paying them.

Let me explain. Let’s say for example you are asking $200,000 for your property and you are willing to “pay” up to $3,000 toward the buyer’s closing costs. This will net you $197,000while the buyer will still be financing based on the $200,000 so the buyer is actually financing their own closing costs.
Basically you have the knowledge that you are netting $197,000 so you added the $3,000 to that number. You would have better luck by just reducing the price by that amount. Also, if your home is not listed with a Realtor you may want to look into it.

Best of luck to you,
Lou
0 votes
Josh Barnett, Agent, Chandler, OK
Wed Sep 5, 2012
Mr. Gregg,

Do put a cap on the closing costs and getting a full price offer only asking 3k, is a great deal, especially on a mobile.

Pay the closing costs and get CLOSED.

Hope this helps,

Josh Barnett, Realtor
Web Reference:  http://www.1ListingFee.com
0 votes
Tim Moore, Agent, Kitty Hawk, NC
Wed Sep 5, 2012
Ahhh, marketing. You could also figure on accepting a $3000 low offer and paying no closing costs - same thing. Often buyers like having closing costs paid on lower priced homes because the buyers often are cash poor. Offering $3000 in closing costs will probably get you an offer of something less than full price with you paying $3000 in closing costs too. The only problem, I see, is taking the genie out of the bottle once you make an offer to pay closing costs. Let's say they offer $5000 less than list price and you have to counter back the closing costs they ask for too. In today's market I think buyers just expect to not pay full price for any reason and you paying closing costs is what they expect anyway so they don't see it as a $3000 reduction in the offer, but you do. I would just list it and see what offers you get.
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