Buying a home is expensive. But in today’s market, you may not have to cover every cost by yourself.
If you’ve been thinking about buying a home but keep looking at the money you’ll need and saying, “Yeah… maybe I need to wait,” hear me out.
The Tampa Bay real estate market has changed. Some homes are sitting on the market longer, and that can give buyers something we haven’t always had a lot of: room to negotiate.
And I want buyers to start negotiating for more than just a lower price.
Ask the Seller to Help With Your Closing Costs
When you make an offer on a home, you may be able to ask the seller for a seller credit, sometimes called a seller contribution or concession.
Depending on your loan and the deal, that money may help cover certain closing costs and prepaid expenses.
Think about it this way:
You may have enough income to afford the house. You may have decent credit. You may even have your down payment saved.
But after the down payment, closing costs, insurance and everything else, you might be thinking, “Y’all want MORE money from me?!”
That’s where negotiating with the seller can make a difference.
What If the Interest Rate Is the Problem?
Seller credits may also be useful if your biggest concern is the monthly payment.
Depending on your loan, some of the seller’s contribution may be used toward discount points to buy down your mortgage interest rate.
A lower rate can potentially mean a lower monthly principal-and-interest payment.
So instead of only asking:
“Can we get $10,000 off the price?”
I also want buyers asking:
“Could that $10,000 help me more as a seller credit?”
Those numbers need to be run with your lender because every buyer and loan is different.
How Much Can the Seller Pay?
There isn’t one limit that applies to every buyer.
The amount a seller can contribute depends on your loan program, down payment, occupancy and other details. FHA, VA and conventional loans have different rules.
That’s why your real estate agent and lender should work together before the offer is written.
We want to know what you can actually use before we start asking the seller for money.
Don’t Count Yourself Out Yet
Does this mean every seller in Tampa Bay is going to pay all your closing costs?
Nope.
But that doesn’t mean we shouldn’t ask.
A home that has been sitting for weeks with a motivated seller may give us more negotiating room than a home that just hit the market with multiple offers.
So if you’re holding off on buying because you’re worried about the cash needed to close or your monthly payment, don’t automatically assume you can’t afford to buy.
Let’s look at the numbers first.
You may find out that the right house, the right seller and the right negotiation strategy can put you in a much better position than you thought.
🎥 Watch the Full Video
I break down seller-paid closing costs, seller credits and interest-rate buydowns in simple terms in my latest YouTube video.
WATCH HERE → https://www.youtube.com/watch?v=HWcmd0SN1dQ
If you’re thinking about buying a home anywhere around Tampa Bay, send me a message. Let’s talk about what’s holding you back and see what options may make sense for you.
Sherman Milton III
Broker Associate | Pineywoods Realty
Broker Sherm | Tampa Bay Real Estate
