Help! I've Been Bested by Paying the Buyer's Closing Costs...

Buying & Selling Real Estate
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Help! I've Been Bested by Paying the Buyer's Closing Costs...

Rob Roy
Agent Sales Representative at BiggerPockets · Fort Collins, CO · Member since 2017 · 51 posts · 38 votes

Hello BP!

My house finally went under contract yesterday after lowering the price down $30,000 and having it sit on the market for over two months.  We agreed that I (the seller) would pay $5,000 of the buyer's closing costs.  However I just found out through my wife (who works at the same company he is going to), that the buyer is actually getting his closing costs covered by his new employer.  So I feel like I've been had and the buyer is going to just pocket that $5,000 cash, while I'm breaking even on my house.

The exact wording in the Purchase Agreement is “Seller to pay $5,000 of Buyer’s cost to close, to be used at the buyer’s discretion” and we just went under contract yesterday.  Is there anything I can or should do about this?  Or is it too late and better to just accept it as a lesson learned and declare him the better man...?

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Russell BrazilBusiness Member
Moderator
Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
8y

His employment contract, and where ever else he gets money for a down payment or closing costs isn't really any of your business. The only thing that is your business is your contract between him and you. If he was gifted the money for the down payment from his parents, would that mean he should have played you more money for the house?

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  • Jory Harvey
    Mannford, OK · Member since 2016 · 57 posts · 14 votes
    8y
    In the end , you basically agreed to lower your price by $5000 , and regardless of what happens on his end that’s still happening . It may feel like you were taken , but the price is the the same regardless of how it is worded and arranged . My attitude weather buying or selling always is : I don’t care what you did or paid or are going to have to do or pay for something , all I care about is what I’m paying or getting paid . There are just too many stories people have to worry about their side of things .
    1Reply
  • Lana G.
    Escrow Officer · Ewing, NJ · Member since 2017 · 35 posts · 16 votes
    8y
    I totally agree with J. Harvey. You agreed to the concession to reach your bottom line of selling that property. I don’t think you can fault the guy for reaching his bottom line of keeping his OOP down. Had your wife not been privy to that information you probably still wouldn’t know and likely be very happy to be at your current stage in the deal.
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  • John Thedford
    Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
    8y

    I think the other side won. The CL will show closing costs...and you agreed to pay them. Or it is possible they FORGOT to mention this and will refund it:)

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  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    8y

    His employment contract, and where ever else he gets money for a down payment or closing costs isn't really any of your business. The only thing that is your business is your contract between him and you. If he was gifted the money for the down payment from his parents, would that mean he should have played you more money for the house?

    [email protected]301-893-4635Podcast Guest on Show #192
    District Invest Group545 Reviews
    WebsiteView Page
    6Reply
  • Jeff CopelandBusiness Member
    Real Estate Broker · Tampa Bay/St Petersburg, FL · Member since 2015 · 1k+ posts · 2k+ votes
    8y

    Exactly what @Russell Brazil said. 

    His employment contract, compensation from his employer, and sources of cash to close are completely irrelevant to your contract.

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  • Jonathan PfluegerPro Member
    Ben Lomond, CA · Member since 2016 · 338 posts · 337 votes
    8y

    This was a business deal. Where and how a buyer or seller gets their money is their business and the banks. There was nothing shady here just both parties doing what is in their best interest. 

    1Reply
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