Today’s tip is number 11 have the seller pay all closing costs. All right, so I have a contract that I’ve spent many years putting together in my career. There’s 40 plus years now. I’ve been buying, selling and holding property and a I created something called the standard real estate purchase and sale agreement. Now I’ll just take this one clause and focus on it because I talked about the agreement in tip number 10 so let me tell you about this particular clause.
Now this is our standard real estate purchase and sale agreement. It is loaded with profit centers protection and negotiation for you. And this particular one says seller will pay all closing costs in to include recording fees to intangibles, tax credit report funding, fee, loan origination fee, document preparation fee, loan insurance, premium loan discount, title insurance policy, attorneys’ fees, courier fees, overnight fees, appraisal fee, survey transfer, tax satisfaction, recording fees, wood destroying organism report in any other costs and fees associated with funding or closing.
This agreement, buyer will pay all additional monies. Isn’t that fantastic? I’ll taxes rentals, condominium or association fees, monthly mortgage insurance premiums and interest on loans will be prorated as of the date of closing. So what happens is that this clause is already in the agreement and many times our clients don’t negotiate. They just simply go along with it. Now of course it’s negotiable. So you could strike out cellar and put buyer.
The other way you could fix it is actually say, well, you will pay the first $500 or seller will pay the first $500 of any closing costs and then you’ll pay the difference. So of course everything in the agreement is negotiable. But if it’s already built that way, many times people don’t negotiate. I’d love to share more of my profitable tips with you. I hope you’ve enjoyed this one and you will use it. I know it will make a difference in your profits.