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Real Estate Tips
Financing Your Home >Who Pays the Points

When home buyers shop for financing, they must consider two important factors--the interest rate and the points. Each point is equal to one percent of the mortgage amount. If you are selling a home, the buyers may ask you to share the points with them.

The buyer usually pays the points. But if the offer is attractive and will give you the amount you want, paying one or more points might be a good idea. When a contract is presented, your real estate agent will go over the price and terms to help you calculate the net price you will receive. If the offer isn't strong enough or has risky contingencies, you might make a counter offer to increase your profit on the sale by eliminating the points from your selling costs or by increasing the price to help you absorb additional costs you will pay.

In some cases, buyers with limited cash may need some assistance from the sellers to make the transaction work. Your real estate agent will help you look at the total picture and the buyer's overall qualifications, so that you can make a decision based on the bottom line.

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Real Estate Trivia
Q 
What does "contingency" mean in real estate?

A 
A contingency is a specified event that must take place before a home purchase contract is binding; for example, a sale can be said to be "contingent upon the sale of the buyer's current residence."
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Kirk Moore Diamond Service Realtor Team, REALTOR®, real estate agents and broker for Ogden, Ogden Valley and Morgan, Utah home listings, property and land for sale - NUMBER1EXPERT(tm)

Kirk Moore Diamond Service Realtor Team
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5518 East Buckhorn Dr
Eden, UT 84310
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"Kirk Moore has become one of the areas most reguarded Realtors always putting his client's and customer's needs first. He's committed to listening. Understanding, and Has the knowledge and experience to make your real estate transaction successful...everytime!"

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