When home buyers shop for financing, they must
consider two important factors--the interest rate and how many 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 Realtor will go over the price and
terms to help you calculate the net price you will receive. If the offer is
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 Realtor 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.