This is a relatively rare occurrence. However, two good reasons exist that would  convince a seller to pay closing costs.

Let’s face it, most buyers have to save up for quite some time in order to get the required down payment, whether it be three and a half percent FHA or 20% conventional or something else. To be realistic, it takes time to save up that much money. But when they write a contract is when many buyers learn that also they need the closing costs.

Closing costs can easily run to $8,000 – or more. And since they need to be paid in cash, this may cause the buyer to be unable to complete the transaction. And this could cause the seller to lose the sale. By offering to pay the closing costs, you can enable a buyer to be able to purchase your house. The funding for the closing costs can come from having the buyer pay for example, $8,000 more for the home. That is, buy it for more than they would if you didn’t pay the closing costs. However, this allows the buyer to have the closing costs folded into their mortgage payments. After all, $8,000 on a 30 year mortgage at today’s rates will add slightly more than $1 a day to your mortgage payment. And you won’t actually pay $8,000 until 17 and a half years have passed. And let’s face it, most people won’t still be in the house in 17 and a half years.

But either way, it’s a way to help your house get sold.