Home Buying Advice - Closing Costs and other Financing Incentives

It is common for the buyer to request that the seller pay some or all of their closing costs and prepaid items, which may include points to reduce the buyers interest rate. This is fine in a slow market when the seller needs to get rid of their home, but in a strong housing market this can be an disadvantage. If the seller receives multiple offers they are less likely to go with the one that is asking for a large amount of seller concessions.

It is also worth noting that you probably cannot offer the asking price and then ask for 3 percent worth of concessions, the property will still have to appraise in order for you to get the mortgage.

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