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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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charles butterfield’s answer
Thank you, Trulia:

As Bill Phillips pointed out, who pays the closing costs is the one item that is really negotiable. Customarily in Santa Clara County the seller pays for the Tite Insurance Policy that protects the buyer, the escrow fees, the County Transfer Tax and 1/2 of the City Transfer Tax.

Sometimes the seller will try to find a cheap title company to try save a few hundred dollars in escrow fees. However the cheap title companies are usually understaffed and have high turnover rates. The result is long unnecessary delays in processing paper work and large numbers of mistakes that will cost you and the agent who represents you a lot of time and frustration to correct those mistakes, and can potentially cost you a lot of money if you and your agent fail to catch the title company mistakes prior to the close of escrow.

Thank you,
Charles Butterfield MBA
Real Estate Broker/REALTOR
American Realty
Cell Phone: (408)509-6218
Fax: (408)269-3597
Email Address: charlesbutterfieldbkr@yahoo.com
DRE#00901872
1 vote Thank Flag Link Sat Mar 3, 2012
Most closing costs are necessary and attributable to services rendered. What IS negotiable is who pays for them. In Santa Clara County, it is customary for the Seller to pay for the Escrow Fee, Owner's Title Policy, County transfer tax, and usually 1/2 the City transfer tax if there is one. Any additional amount paid by the Seller would be requested as a "credit towards closing costs". You can also choose an interest rate (slightly higher) that will include a credit towards closing costs. This is the choice most commonly taken in recent contract negotiations, to keep your offer competitive with the multiple offers we have been seeing recently .
1 vote Thank Flag Link Sat Mar 3, 2012
Closing costs are split into two categories, origination fees and title/closing fees.

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
Web Reference: http://BayAreaConnect.com
0 votes Thank Flag Link Sat Mar 3, 2012
In a transaction everything is negotiable... This is usually done on the front end of the offer so be sure to talk with your agent about the closing costs and how you can add some or all the costs into the Purchase contract.

You will have to take into account any current market conditions as sellers will be less inclined to give credits when it becomes a buyers market... This includes bank owned units....

Danielle Contreras
Keller Williams Realty - Cupertino
Web Reference: http://www.SanJoseTeam.com
0 votes Thank Flag Link Sat Mar 3, 2012
Some fees cannot be eliminated, but it is possible for you to ask the seller for a credit to cover your closing costs, so technically all closing costs are negotiable.
0 votes Thank Flag Link Sat Mar 3, 2012
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