Should sellers pay your closing costs? It's a popular trend to help buyers. We've been writing contracts with seller paid closing costs for years. We used to write the costs into a contract after the deal was negociated and signed. That cut down some objections but created others (see below)

1) We started to come across sellers who refused to change the sales prices after the contract was signed off on by both parties. We almost lost a deal over it. We even offer to eliminate commission on the increased difference.

2) Appraisals are tighter than ever and the extra closing costs can put the property price over the top. We had that happen with a condo and the deal fell almost fell apart. The buyer had to borrow money (after our client refused to meet half way and reduce sales price).

3) Most Mortgage brokers don't get it.. they tell buyers to ask for closing costs up front saying something like "Just have the seller pay closing costs". The mortgage industry ignores the fact that it effects a sellers bottom line (it makes the mortgage brokers job easier selling the loan) so the pressure of writing the contract with closing costs included up front is planted in a buyers mind. If we as realtors try to change that buyers mind (and roll in closing costs after the contract is agreed to by increasing sales price) after buyers have met with the mortgage broker we're met with resistance. The 1^st time buyer thinks they are now paying the closing costs (rolled into their mortgage). They don’t understand that if we roll in the closing costs at the start, the seller will just increase  their bottom line to compensate for the closing costs.  I know this concept may sound ridiculous but it’s true. It’s a question of semantics.. but it happens all the time.

Fellow Realtor "Frank" just wrote a post on writting in closing costs after the deal is done (what we used to do). to read his comments go here: http://blog.franklyrealty.com/2010/02/seller-closing-costs.html