Want to sell your home? Get a FREE home value report. Want to buy a home? Search all homes for sale.Seller-paid closing costs is a common tool that we use as real estate and mortgage professionals to help reduce the out-of-pocket expenses for home buyers. It’s typically used quite a lot for first-time buyers. Today I want to walk you through an example of how this works. Let’s say you’re purchasing a home for $100,000, and you have an additional $8,000 in closing costs that you need to come up with in order to close on the home. That $8,000 is a lot of money for a first-time home buyer. One way we reduce that is by getting seller-paid closing cost assistance. With FHA financing, you can get up to 6%. In this scenario, you could potentially get up to $6,000 from the seller to help pay that $8,000 in additional cost. Your overall tab shrinks from $108,000 to $102,000. “Seller-paid closing costs reduce out-of-pocket expenses for home buyers. ”On the seller’s end, they’re accepting the $100,000 purchase, but they need to agree to give you an additional $6,000. From their standpoint, they’re essentially getting a purchase of $94,000. They’re basically agreeing to do the reduced purchase in order to get you into that home. This is a very basic example, but the percentage of closing cost assistance can vary. If you have any questions, please feel free to send me an email or give me a call so we can go through this in greater detail.