Today, I have a couple tips for you if you are thinking of asking a seller to pay your buyer closing costs or your buyer agent fee.

It is critical that you have your addendums and/or compensation agreement written correctly or you may not get the closing costs or buyer agent fee paid by the seller that you were banking on.

If an addendum is written that the seller pays x percent or dollars towards closing costs and buyer agent fee, the lender may decide to count it all as the buyer’s closing costs and will only allow a smaller percentage to be paid at closing.  It is best to write a separate addendum for seller to pay buyer closing costs and in regards to seller paying buyer agent fee, it needs to be on a separate compensation agreement.

The last thing that a buyer wants is to get to closing and the lender denies one of the two and you are now having to come out of pocket for something you have not planned for and are short on funds. 

Use an experienced professional to help you buy and/or sell your home to experience the smoother road to closing.  Contact us today!