I received an all-cash offer on one of my high-end listings last week.
While reviewing the offer before presenting it to my seller, I was surprised to notice that the buyer was asking for $2,000 of seller-paid buyer closing costs.
Why in the world would an all-cash buyer need help with their closing costs?
This unusual request caused me to read the fine print in the Purchase and Sale Agreement, which stated:
Upon closing SELLER agrees to pay up to EITHER _____% (N/A if left blank) of the purchase price OR $2,000 (N/A if left blank) of lender-approved BUYER’S closing costs, lender fees, and prepaid costs which includes but is not limited to those items in BUYER columns marked below.
Since it was an all-cash offer, there weren’t any lender-approved buyer’s closing costs or lender fees. And, the buyer’s agent had marked only the tax service and flood certification fee for buyer’s closing costs; neither of which would apply with an all-cash offer.
That left only one-half of a $700 escrow fee for the buyer’s closing costs.
So, we countered that the price was acceptable with the buyer to pay their own closing costs.
The buyer walked.
During my conversations with the buyer’s agent, I learned that the buyer was from out-of-state, had viewed 35 homes, and lowballed another listing by $30,000.
I’m guessing there’s more to this story than I will probably ever know.