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Which costs are potentially negotiable in closing costs

Asked by Trulia, San Francisco, CA Sat Mar 3, 2012

Are there negotiable and non-negotiable closing costs?

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You can ask the seller to pay up to 6% of your loan towards your portion of the closings costs, prepaids and/or points. That amount depends on the type of loan, so you'll want to talk with your lender prior to making an offer on a property. FHA is proposing to change the amount that sellers can contribute to the buyers closing costs.

The seller will look at this negotiation the same way as asking them to come down on the listing price 6%. It is subtracted from their net proceeds at closing and is not fees that they normally pay.

Some fees are also negotiable with the provider of the service.
1 vote Thank Flag Link Sat Mar 3, 2012
Everything is negotiable when writing a contract, should be stated as closing costs prepaids and allowables. Can be used for insurance and tax escrows, title work and closing fees,recording, and overnighting docs. Need more info please contact me. Brian Quackenbush , Remax Results, 816-985-0928, brianq@remax.net
Web Reference: http://www.bqworks4u.com
1 vote Thank Flag Link Sat Mar 3, 2012
When buyers ask for closing cost, they are typically worded, "for closing costs, prepaids, points, principal and/or interest" The buyer then works with his lender to determine how best to apply the costs.

Note that if it's worded only for closing costs, it cannot legally be used for the prepaids, points, principal or interest. In some cases if it's mis-worded and the amount that the seller is crediting the buyer is over the buyer's actual closing costs, the seller gets to keep the portion of the money that is over the closing costs.

You also have to talk to the lender FIRST to make sure that you know the max amount that the seller can credit the buyer. If you write a higher amount in the contract than the type of loan will allow the seller to pay, then again, the seller keeps the money.
Web Reference: http://www.yourstlhome.com
1 vote Thank Flag Link Sat Mar 3, 2012
It depends on the type of loan in regard to how much you can ask for. Generally everything is on the table and a good Realtor® will offer you information in regard to what might benefit you most. In the end the final decision is yours but a full time pro giving you advice is key to you getting the best deal!
0 votes Thank Flag Link Wed Mar 7, 2012
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