What costs could be negotiated when dealing with Title Companies.
You will be surprise of what costs and how much is negotiable.
Costs are divided to several categories: Costs that are Title and escrow Company in-house costs, 3rd Party Costs and Governmental Taxes.
1. Title and escrow Company in-house costs like Notary, Courier, processing fees, title insurance, title & escrow fees, Wire fee, REO & Short Sale supporting fees. Those fees are determine by the title and escrow company and may vary from one Title Company to the other. When negotiating with those types of fees the more educated buyer/seller will prevail so do some research? All title companies must revile there title cost. Collecting title costs from several title company will allow you to compare fees and be better prepare when negotiating with the title company
2. 3rd Party fees Like Lender fees
* Lender fees could only be negotiated with the lender directly and not through the title company. Lender Fees like those related to the loan origination fee, Application fee, Doc preparation, Underwriting fees could again be negotiated with the lender
* Inspections/reports, Appraisal must be determine with the 3rd party directly
3. Government Taxes: Mostly not negotiable but check with your local governmental office about your rights and special programs
In the same time a smart buyer/seller can negotiate fees. You may find that the real cost in a real estate transaction in the cost of the loan. A small different of 1/8 of a present could mean a different of 100K of cost in the loan bottom line.
Let me know what you think,
Title and escrow charges can be paid by buyer or seller and different counties have different customs as to who pays. However the charges are no longer negotiable due to new RESPA laws. Each Title company must tell the government what they charge and not have that go up or down for any particular client.
Some cities including San Francisco, San Mateo, Palo Alto, and San Jose have city transfer taxes which are not negotiable.
Lender charges are set by the individual lender and may or may not be negotiable depending on the lender.
Hope that helps!
While there are "conventions" that people follow to closed deals quickly, the simple truth is that all costs are negotiable between buyer and seller. The standard real estate contract is designed to reflect that reality. Either the buyer or seller can pay all the closing costs. It's all up to you and the negotiating skills of your Realtor. Of course, for practical purposes, you may not bother to quibble about more trivial cost items like $30 recording fees and such.
If you're purchasing from a bank, however, you should expect to deal with a very inflexible seller who'll demand you pay for more of the closing costs than convention. In those cases, you just have to adjust your bid accordingly.
Most if not all of the origination fees are neogtiable and most of the title/closing fees are fixed, of course this depends on the lender you are working with.
To view the average amount for closing costs broken down into categories check out my blog post here http://bayareaconnect.com/average-closing-cost-amounts/
If you are not yet working with a lender I have a direct lender who works with Princeton Capital, they are our in house lender at Coldwell Banker. My lender can usually credit $3,000-$4,000 to your closing costs and they have very competitive rates.
Check out my Santa Clara County home buyers blog at http://BayAreaConnect.com for weekly real estate news, weekly new listing photos, weekly market reports and school information.
If you have any other questions please give me a call at (408) 840-3852 or shoot me an email at Thomas.Feng@gmail.com