Impact of home price reduction vs closing cost?

balaji_cr · Joined: 10 Aug 2008 Posts: 1 1.32 Dollars($)

I am buying a new home. Builder pays a part towards closing cost. Also realtor pays part of commission. Now I have two options to utilize the realtors commission. Please advise which is best - ask for price reduction or utilize towards closing cost? What are the pros and cons by opting home price reduction while selling home later point or property assessment for tax by county?

0.10 Dollars($)

Hello balaji_cr.

I would utilize it towards the closing cost because I have to pay the closing cost upfront. But if you have enough cash in hand to pay the closing cost then you can also ask for home price reduction.

sara

Hi balaji,

Welcome to the forums.

I guess you should use the commission towards paying down the closing costs. This is because if you reduce the price, pssible you'll earn more rpofit when you sell the home and then you'll have to pay more of the capital gains taxes I believe. Anyway, whichever option you choose, the money comes to you either way. If you use it to pay closing costs, you save your own funds with which you can later on pay the capital gains taxes.

Take Care

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