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Realtors are not Santa Claus. Why do I need to remind buyers of this? Buying a home is not free. A no money down loan means that no money is put down toward the purchase price of the home. There WILL BE pre-paid expenses such as home inspections, homeowners insurance, survey, and other possible costs needed to close the property, as well as lender fees to make the loan, attorney fees, title fees, prorated taxes, and more to close the property. These are BUYER CLOSING COSTS. In no way, is the seller obligated to pay these for the buyer.

Does anyone remember when Oprah gave a new Lexus to everyone in her audience a few years back? VERY FEW were able to keep the cars, because taxes, title, and car insurance were required to drive one of the “free cars” home.

Every Seller CANNOT AFFORD to pay closing costs for a buyer. Over the course of the last few years, a new mentality has emerged, in which buyers have come to believe that they should be able to buy a home at foreclosure prices and pay absolutely nothing to get in a home.  While in some cases that may be true, the less expensive the home is, and the length of time a seller has owned a home, will determine if there is enough equity to assist the buyer with costs.

With home loans such as USDA and VA, buyers are under the mistaken notion that their closing costs are the responsibility of the seller.

The closing costs on the purchaser’s estimated closing costs sheet are the buyer closing costs.

Here is another reality check. In most places, it is now a SELLER’S MARKET. Old fashioned supply and demand dictate that less supply means more demand, higher prices, and others competing for the same homes. Homes in a seller’s market sell faster, often over list price when in multiple offer situations, and without extra conditions such as paying buyer closing costs.

When negotiating a contract on a home, it is important to remember that Realtors are not Santa Claus, but are skilled at getting the home you want at a price you can afford, and that allow the sellers to move on.