In this video we will discuss the role of buyer closing
costs as a negotiable item in a shifting market. 

Every market is different, but one thing is true – the market will always shift from a buyer’s market to a seller’s market and back, no matter where you live.  And as the market shifts from a seller’s market to a more balanced market here in Dallas-Fort Worth it’s important to know what to expect in the way of purchase offers.

In a shifting market, a home seller may be presented with an offer for their home that includes paying certain costs on behalf of the buyer. 

The initial reaction of some sellers is “Why would I pay fees that the buyer is supposed to pay?”

Let’s take a look at what these costs are and why you might want to consider paying them. 

Buyer closing costs include lending fees (if they are getting a mortgage), title insurance, and appraisal costs. For buyers using a government loan like an FHA or VA loan, the fees can add up to around 3% or more of the sales price of the home. 

Let’s face it. Many home buyers today, especially those just starting out, don’t have a lot of extra cash laying around. In most cases, they are using what they have to cover their down payment. 

In order to be able to buy the home, they are counting on the seller to absorb some of their additional costs.

Here is the good news. Depending on the price of the home and the amount of the fees, the sales price can usually be increased to offset the buyer’s closing costs. This, of course, assumes that the home will still appraise for the agreed-upon final sales price in the contract. 

So, isn’t the buyer actually just financing their closing costs if they do this? The answer is “yes.” When the sales price is adjusted to account for the closing costs, the seller isn’t really “paying them” per se. The contract says they are, but the buyer is really just rolling their fees into the cost of the house. Much like car dealerships “pay” for your tag, title, and tax when you buy a car. We all know it’s simply rolled into the price of the vehicle. 

This isn’t always possible. And NOT all buyers ask for their costs to be covered by the seller. Your agent will explain any offers you receive and help you determine the best possible outcome and negotiation strategy to maximize your net. 

At the end of the day, the goal should be to come to a win-win arrangement that meets both the buyer AND the seller’s goals. 

It’s our policy to go over ALL the closing costs and to provide clients with an estimated net they can expect to receive at closing. Since not all agents may do this automatically, be sure to ask your agent to go over with you the estimated NET proceeds for each offer, along with the itemized expenses involved. We recommend doing this in person if possible! 

Naturally, if you have more questions about closing costs, the current market, or anything else…just give us a call at 817-330-9235 or email us at