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Getting approved for a mortgage is one step. Having the cash to complete the purchase is another. You may know someone who bought with very little money out of pocket. Or you may have bought this way yourself. But that does not mean your next purchase will work the same way. We can ask the seller to help with closing costs and buyer-agent compensation. But know what you can cover if they pay only part—or nothing. “A loan approval tells you what you can borrow. You still need to know what you must pay.”Start with our guide to buying a home on Guam for the overall process. |
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What costs should Guam buyers prepare for?
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Earnest money deposit
We typically plan for 1% of the purchase price, although the amount and deadline are negotiated in the purchase agreement.
On a $400,000 home, that is $4,000.
You need this money early. At closing, it generally counts toward your down payment or closing costs. Do not count it twice. Whether you can recover it if the purchase falls through depends on the contract and circumstances.
The CFPB explains how deposits and seller credits affect your cash to close.
“ Your deposit counts toward the purchase. But you need the cash before closing.”
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Closing costs
Our Guam planning estimate is 4–6% of the purchase price. On a $400,000 home, that is 16,000–24,000.
These can include:
- Lender fees and appraisal.
- Title and escrow charges.
- Prepaid insurance, taxes, and interest.
Your actual costs depend on your loan and negotiated terms. Ask your lender for a written estimate showing costs, credits, and cash needed. Some charges may be due before closing.
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Home inspection
Our Guam planning range is 1,000–2,000, depending on the home’s size and inspection scope. Get a quote before scheduling.
Budget for this separately because it is generally paid during the inspection period.
An appraisal estimates value for the lender. An inspection evaluates the home’s condition. The CFPB explains why buyers should arrange a separate home inspection.
“ An appraisal does not replace a home inspection.”
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Buyer-agent compensation
Your buyer representation agreement explains your agent’s fee and your payment responsibilities. Compensation is negotiable, not set by law.
We can ask the seller to pay all or part. If they decline, understand what you would owe under your agreement before committing to the purchase.
NAR’s guide to written buyer agreements confirms that seller-paid compensation remains an option.
For local context on the August 17, 2024 practice changes, read how Guam real estate commissions have changed.
- Down payment, if required
This depends on your loan. Eligible VA buyers may qualify with no down payment, subject to entitlement, lender requirements, and appraised value.
The VA explains its purchase-loan benefits and conditions.
“ No down payment does not mean no other expenses.”
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How much difference can seller assistance make?
Here are two examples for a $400,000 purchase with no down payment. Both use an illustrative, negotiated 3% buyer-agent fee, not a standard rate.
Example 1: The buyer pays all listed costs.
- Closing costs: 16,000–24,000.
- Home inspection: 1,000–2,000.
- Buyer-agent compensation: $12,000.
- Total buyer funds: 29,000–38,000.
Example 2: The seller pays the $12,000 agent fee and contributes $8,000 toward closing costs.
- Remaining closing costs: 8,000–16,000.
- Home inspection: 1,000–2,000.
- Buyer-agent compensation remaining: $0.
- Total buyer funds: 9,000–18,000.
In both examples, the $4,000 earnest deposit counts toward the total. It is not added again.
These are planning examples, not quotes. Closing-cost figures exclude the separately listed inspection and agent fee. Seller contributions must fit your loan’s rules and eligible costs. Your lender and escrow company should confirm the final breakdown.
Can we ask the seller to cover more?
Absolutely. If you don’t ask, the answer is always no. But be prepared.
You can ask for a lower price, closing-cost assistance, and seller-paid buyer-agent compensation. But all three reduce what the seller receives, which can affect whether they accept, counter, or decline your offer.
If keeping your upfront cash lower is your priority, we may focus on getting your closing costs and agent compensation covered instead of asking for a deeper price reduction.
We’ll compare those options with your lender. A higher price with more seller assistance still needs to meet financing and appraisal requirements.
“ Ask strategically. Focus on the terms that help you buy.”
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How do you show the seller you can close?
A strong offer includes a clear financing plan and evidence that you can cover your agreed costs.
Along with your lender’s approval, be ready to document funds for earnest money and your share of closing costs. Clearly state any seller assistance you need.
Before making an offer, ask:
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How much do I need for the deposit, and when?
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What must I pay before closing, including inspection and appraisal?
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How much will remain due at closing after deposits and credits?
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What buyer-agent compensation would I owe if the seller pays less than requested?
Why discuss this before shopping?
A buyer recently had a $230,000 prequalification but no money set aside for a deposit or closing costs. We needed to discuss available funds and whether buying would depend on seller help.
That is why we recommend getting pre-qualified before looking at homes on Guam, including a conversation about upfront cash.
“ Know your numbers before you fall in love with a home.”
Frequently Asked Questions
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Can I buy with very little money out of pocket?
Possibly. Loan terms, seller assistance, and lender credits can reduce your contribution. But you may still need money early for the deposit and inspection.
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Did the August 2024 changes stop sellers from paying buyer agents?
No. Seller-paid compensation remains negotiable. It is not guaranteed.
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What if I cannot cover the remaining costs?
Discuss that before signing an offer. We can explore different terms, another property, or more time to save. If you are already under contract, your signed agreements determine your options.
3 Key Takeaways
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Know your total costs and payment deadlines. A mortgage approval alone does not tell you how much cash you need.
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Ask for seller assistance strategically. Help with closing costs and buyer-agent compensation can reduce your upfront cash. Structure those requests around your priorities and an offer the seller may accept.
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Prepare before making an offer. Document available funds and have a plan for any shortfall.
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Leah del Mundo — Guam’s First AI Certified Agent, Guam’s Exclusive 72Sold Certified Agent
