A question that comes up regularly after a home inspection:Is it better to get a price reduction or is it better to get a credit toward closing costs?
The general rule of thumb is if a buyer is putting a minimum amount down or a low down payment, then a seller credit toward closing costs is the best bang for the buck. If the buyer is already getting seller concessions toward closing costs, then a price reduction may be in order.
If a buyer is putting a large down payment down, then a price reduction usually makes more sense and it is easier to use a larger seller credit as a price reduction than it is toward closing costs.
If you have a scenario, let me know and we’ll run the numbers.
