How do you communicate with the seller's agent about closing costs without jeopardizing the deal?

1 Know your budget

Before you make an offer, you need to know how much you can afford to pay for the closing costs. You can use online calculators or consult with your lender to estimate the amount based on the loan type, interest rate, and down payment. You should also factor in other expenses, such as moving costs, repairs, and furniture. Knowing your budget will help you determine how much room you have to negotiate and avoid overspending.

3 Ask for a credit

One way to communicate with the seller's agent about closing costs is to ask for a credit or a reduction in the purchase price. A credit is an amount that the seller agrees to pay towards your closing costs at the closing table. A reduction in the purchase price is an amount that the seller agrees to lower the sale price by, which can lower your loan amount and your closing costs. Both options can help you save money upfront and reduce your monthly payments. However, you should be aware of the pros and cons of each option and consult with your lender and your agent before making a request.

4 Be flexible and reasonable

Another way to communicate with the seller's agent about closing costs is to be flexible and reasonable in your negotiations. You should not expect the seller to pay for all or most of your closing costs, as this may be unrealistic and offensive. You should also not make unreasonable demands or ultimatums, as this may ruin the rapport and trust that you have built with the seller's agent. Instead, you should aim for a win-win situation, where both parties feel satisfied and respected. You can show flexibility and reasonableness by prioritizing your needs and wants, being open to compromise, and offering something in return, such as a shorter contingency period, a higher earnest money deposit, or a positive review.

5 Review the closing disclosure

The final step to communicate with the seller's agent about closing costs is to review the closing disclosure. The closing disclosure is a document that summarizes the final terms and costs of your loan and your transaction. You should receive it at least three days before the closing date. You should review it carefully and compare it with the loan estimate that you received when you applied for the loan. You should also check for any errors or discrepancies and notify your lender and your agent immediately if you find any. You should also confirm the amount and method of payment that you need to bring to the closing.