While you are negotiating your contract for purchase of real estate, or during your attorney and inspection review periods, you (the Buyer) may reach a point where you need to make a decision about a closing cost credit or a purchase price reduction. For some reason or other, you and the seller have agreed on a financial concession in your favor. At this point, you need to decide how you should receive that concession. If you are purchasing in cash, the simplest thing to do is to reduce the purchase price. Since you are a cash purchaser, you will be paying your purchase price and all of your closing cost at closing anyway. There is no lender involved to make things messy, so you might as well take a straight reduction on the purchase price. At some point when the county goes back and looks at the sale of the… read more →
