When buying a house is it better to ask for closing costs from seller or the same amount in price reduction?

Question

And please explain your reason. Thanks

Answer 1

Closing costs if you are financing.  If you ask for a price reduction you've still got to come up with the cash to close.  The price reduction is amortized over the life of the loan, thus the savings is spread over many years.  Since you can keep your own cash if the seller pays closing, you can invest.  The longer you hold on to your cash, the better off you are.

Answer 2

iwould think it would depend  if you have money for closing cost best to get price reduced  also means you are financing less payment less  but if you dont have the money for closing costs that would be helpful also    in my opion. it depends on your sitiatuion

Answer 3

Like everyone is saying: it depends if you have the cash up front.

From a buyer's perspective, the latter is more attractive.

But if I were selling my home, then I would request a closing cost.

Answer 4

Depends on whether or not you have the cash available. If you don't, then you'll want them to pay the costs. If you do, then both are viable options. Consider whether you would prefer to pay the costs up front (which you will if you go for the price reduction), or have them wrapped up in the mortgage. It is up to you.

Answer 5

It depends how bad they want to make the sale.  Negotiate from a position of power.  Ask for a reduction in cost, help with closing costs and ask them to pay for some points for you.  Get as much as you can.  Although, you run the risk of losing the house.  High risk = High Reward.