When you’re on the buyer’s side of a real estate transaction compared to the seller’s side, you’ll soon discover your share of the closing costs involved is a bit lower. Quite a bit lower depending upon the location of the property. The seller will pay forthe real estate agent’s commissions and will also contribute to a title insurance policy, which, again depending upon the location, can run into the thousands. Still, you can’t run away from buyer’s closing costs but you can do some things to mitigate them.

When financing an investment property, beyond your down payment your bank will also require the services of various third parties before issuing a final approval of your loan. The bank may have internal charges to offset the costs of origination and processing we well and your bank will also require title insurance, an appraisal and other items. Items which cost you money. While these charges will be listed on a settlement statement, you can always have the seller pay those charges for you. These seller “concessions” are often represented as a percentage of the sales price or they can be itemized individually for the seller to pay. In the sales contract, you might state the seller will pay up to 3.00% of the sales price toward the buyer’s closing costs.

Or, you can ask the seller to pay for all or most of your closing costs with an eye toward the final sales price. If a building is listed at $1 million and the market supports that value, you can make a full price offer, or something close, if the seller pays for your closing costs. For a seller willing to accept a lower price than the original list, which is common in many markets, but now the seller pays for your closing costs in lieu of accepting a lower offer. The net to the seller is the same and you conserve cash. Work with your real estate agent to craft such an offer and this strategy may not always make sense but it’s a relatively common way to reduce or eliminate closing costs.