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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Suzie Marquardt Dave Fahrny’s answer
Suzie Marqua…, Agent, Las Vegas, NV
Sat Mar 3, 2012
Mr. Cooper gave you a great breakdown of all the closing costs and procedure. There is not much more that could be said. When I write an offer we ask for closing costs at around 3% of the offer price. We usually get the bank to pay them on REO's or Short Sales if you are a strong buyer. Once in a while the bank on a REO or Short Sale will come back and reject paying for the Appraisal. Sometimes we resubmit the file for approval and they will pay. Many agents accept what the bank comes back with the first time. I don't when possible. The seller may be required by their guidelines to counter no matter what. That does not mean you can't countrer back. I had a attorney negotiating a file for a client of mine that came back and said the seller would not pay closing costs appraisal and HOA transfer fees. I checked the work sheet that was submitted to the Equator system for approval and there was nothing on the sumitted worksheet asking for anything. An Attorney who says he is a pro and is helping homeowners, can you believe that. If you don't ask you will not get. After the third submission(It took that long for the Attorney's office to get it right) the bank paid everything except the appraisa Saving the homeowner Thousands of dollars in out of pocket expenses. I bring this up because agents who use some outside companies or Attorneys to negotiare their files are not always doing the best thing for their clients I hope all the great answers will help.
Thank You
Suzie Marquardt
3 votes
Julia St. Ma…, Agent, Las Vegas, NV
Sun Mar 4, 2012
Famous lines of Joan Rivers "Can we talk"
Offers and Counter Offers are conversation between buyer and seller.....

Always best to take a look at how your are poised. This applies to both buyer and seller.

For example: If a buyer wants a property and there are many multiple offers already on it....it would behoove a buyer to pay for his own closings and perhaps and likewise a seller to pay for his own closing costs.

Since most desireable homes in Las Vegas are facing multiple offer situations (especially REOs in good condition as these have certainty to close and close soon -- approximately 20% of MLS inventory), it is best for a buyer to save up to be fully and comfortably prepared to purchase/own a home and out-compete the other buyers whom are not equipped or have prepared.

Question: "Are there negotiable and non-negotiable closing costs?"
Answer: "It depends on how the buyers and sellers are poised"

Thanks much and have a great day!
Julia at Realty ONE
702-355-Ho.m.e. [4663]
http://www.LVRealEstateLady.com
Web Reference:  http://youtu.be/NXT97HFFlno
1 vote
David Cooper, Agent, Los Angeles, CA
Sat Mar 3, 2012
Saving on Buyer Closing Costs
When it comes to buying a home, things can get
expensive, and buyer closing costs are no exception. We
take a look at the best ways to lower closing costs and
whether no closing cost mortgage loans are worthwhile.
Your biggest hurdle may be your down payment when purchasing a home, but it's important to remember
the closing costs. Often disregarded, closing costs can be an unwelcome surprise when finalizing your
home purchase—and more than likely they won't come cheap.

When buying a new home or refinancing your current home, it is critically important that you're aware of all
the costs involved in your home loan, or it's going to cost you. Closing costs are the miscellaneous fees
charged by those involved with a home sale. You can expect to pay anywhere from 2 to 4 percent of the
total sale price in closing costs, depending on your unique situation. Mortgage loan closing costs can be
excessive, but if you're prudent, you can save thousands when it comes to finalizing your loan.

Unfortunately, many new homebuyers just accept the exorbitant list of closing costs fees as an inevitability
of the process. The experience can be a bewildering one for these individuals. They don't want to risk
their American dream on a few unsubstantiated costs. But, it doesn't have to be this way; understanding
the process can help you save.

Closing costs are separated into two categories: non-recurring closing costs and recurring costs. Below
is an assortment of both the non-recurring and the recurring closing costs you may be expected to pay.

Non-Recurring Closing Costs

Title Insurance
Title Search
Attorney fees
Escrow fees
Notary fees
Wire fees
Courier fees
Home Inspection
Recording Fees (local fees)
Credit Check
Document Preparation
Appraisal Fees
Endorsements
Transfer Fees (county/city)

Recurring Closing Costs

Property Tax
Private Mortgage Insurance
Flood Insurance
Fire Insurance

The non-recurring closing costs (junk fees) stated above can be negotiated
down or eliminated entirely. With a little bit of discernment you can come to the
bargaining table prepared. Some of the recurring closing costs mentioned
would be dependent on your individual situation. You may live in an area where
flood insurance is not required. Or your circumstances may not warrant private
mortgage insurance.

When you begin the loan process, it will go something like this. Along with your
loan rate and information, your lender gives you a list of expected fees, called a good faith estimate
(GFE). Required by the Real Estate Settlement Procedures Act (RESPA), the good faith estimate must
be provided to you, the borrower, within three days of taking your loan application. The intent of the good
faith estimate is to give you a closing cost estimate. The problem with any GFE is that the lender isn't
required by law to stick by the fees stated within the GFE. This allows some of the more unscrupulous
lenders to add new fees before closing. Make sure that any fee changes or unexpected surprises are
explained and justified by your lender.

When reviewing the GFE, you can find the fees structured in the following range of numbers: 800’s, 900’s,
1000’s, 1100’s, 1200’s and 1300’s. A good tip is to take a look at the 800 section. This is where most of
the negotiable fees are located. These include (but aren't limited to) application fee, commitment fee,
document preparation, underwriting, and processing. This is where you should focus your negotiation
efforts. Some of the items in the 800 section are third party fees, and though they may not be negotiable,
they should be passed on to the borrower without markup.

It also pays to proceed with caution when it comes to brokers touting no closing cost loans. Theoretically,
there is no such thing as a no closing cost mortgage. As altruistic as many lenders may be, they still need
to make a profit. So, make no mistake, the borrower foots the bill, one way or another, by either paying
now or in the future, through higher rates.

A no closing cost loan may help you avoid the non-recurring closing costs, but they'll do so at a cost, the
cost being a higher interest rate. And while there may not be any lender fees, you'll still have to pay for the
title search, title insurance, home appraisal, credit check and other possible charges.




FREE LIST HUD PROPERTIES AND GOVERNMENT FORECLOSURE HOMES. SEE WEB BELOW
1 vote
Jeff & Kelly…, , Las Vegas, NV
Sat Mar 3, 2012
Hi Just looking.
The negotiable costs are appraisal, home warrantee. Keep in mind there are prorations on fees that stay with the house like taxes and hoa dues. Some fees are dependant on the type of loan (or no loan)
When you are purchasing a bank owned home or a short sale, the bank will not pay these items.
Your lender will give you a good faith estimate when you apply for a loan. I always go over an estimate of cost sheet on my initial buyer meeting.
For a ball park number, closing costs are 4% (plus your down payment). Sellers can contribute up to 3% towards those fees.
Call or email me when you are ready to move forward.
Kelly Stafford
Prudential Americana
702-460-6034
Kelly@VegasHomeExpert.com
1 vote
Renee Burrows, Agent, Las Vegas, NV
Sun Mar 18, 2012
I have broke it down in my web reference linked below. It really depends on the purchase price and if Fannie/Freddie/HUD own the home.

Right now with our inventory situation not many cc's are being handed out.
0 votes
David Cooper, Agent, Los Angeles, CA
Tue Mar 6, 2012
Non-Recurring Closing Costs

Title Insurance
Title Search
Attorney fees
Escrow fees
Notary fees
Wire fees
Courier fees
Home Inspection
Recording Fees (local fees)
Credit Check
Document Preparation
Appraisal Fees
Endorsements
Transfer Fees (county/city)

Recurring Closing Costs

Property Tax
Private Mortgage Insurance
Flood Insurance
Fire Insurance

DON'T MISS FREE LIST OF HUD PROPERTIES + GOVERNMENT FORECLUSRE DISCOUNTS. SEE WEB
0 votes
Jimmy Balsano, Agent, Las Vegas, NV
Tue Mar 6, 2012
Hi

Non-Recurring closing cost are negotiable, recuring closing
cost are not in addition to non-recurring lenders closing cost
are negotiable.

Please contact me if I can assist with any other questions

Thanks
Jimmy Balsano
Realty One Group
702-281-2225
Fax 1-866-371-8421
jimbalsao@cox.net
I KNOW LAS VEGAS AND HAVE FOR 40 YEARS

http://www.rapidsellers.com/jbalsano
http://jimmybalsano.las.mlxchange.com
0 votes
Raina Musser, Both Buyer And Seller, Las Vegas, NV
Mon Mar 5, 2012
Everything is negotiable in life! If you don't ask, you will never receive! Thank you for the great question!!
Raina Musser
raina.musser@gmail.com
702-232-1287
Web Reference:  http://vegashomesforu.com
0 votes
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