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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4
Brenda & Ron Cunningham’s answer
Brenda & Ron…, Agent, Mesa, AZ
Sat Mar 3, 2012
During the negotiations when making an offer on a home you can ask for the seller to pay all your closing costs. This includes lender fees, title company fees and HOA fees. You could even ask for them to pay the inspection, but this is not normally what you will see. Also when you are trying to get an offer accepted, keep in mind that the net proceeds to the seller will be less when they are paying your costs and this could cost you the home if there are other offers.

Of course you need to check with your lender on your specific loan to see if they have any restrictions on how much the seller can pay for you.

Best Regards,

Brenda

Brenda & Ron Cunningham
West USA Realty
602-980-3133
**** Recognized in the Phoenix Business Journal as "One of the Top 50 Realtors in the Valley" ****
1 vote
Desert Premi…, Agent, Mesa, AZ
Sun Mar 4, 2012
Everything is negotiable!

With closing costs you can itemize what you'd like to have paid , ask for a lump some or a percentage of the purchase price. Even in the current market here in the Valley, buyers are still getting their closing costs (or a portion of them) paid for by the seller. The first step to getting them all paid for is to ask!
0 votes
Amy O'Rear, Agent, Gilbert, AZ
Sat Mar 3, 2012
As the buyer, you can always ask the seller to pay a certain percentage of your closing costs for you. Generally this is done by asking for a certain percentage of the purchase price (1-3%) towards your closing costs. As the previous agent mentioned, be aware that whatever amount you ask the seller to pay will reduce his net proceeds, so if asking the seller to pay your closing costs, it may be wise to increase your offer to offset what you are asking for. In general your loan payment will only increase by roughly $6 per $1000 in additional loan, if you are cash strapped this might be the better way to go.
As to what closing costs are negotiable in regards to what must be paid, the following may be negotiated: Loan Origination Fee (fee you pay the lender) can be reduced to zero if you choose a mortgage broker. Loan Discount - you can choose to “buy down” your interest rate. Appraisal Fee - you may safe a few dollars by hiring your own appraiser. Certain programs (HomePath for example) do not require an appraisal so if you qualify for a HomePath loan, this may be an option. You can prevent having to pay “points” by choosing a slightly higher interest rate. I recommend you call more than one lender and “shop” for a loan, then choose whoever will give you the best service, the best rate, and charge you the least amount of fees. Also find a good Title Agency and a good Escrow Officer who will explain things to you in detail and who charge the least amount of fees.

Amy O'Rear
480-664-9950
amy.orear.realtor@gmail.com
Web Reference:  http://www.amyorear.com
0 votes
Randy Hooker, Agent, Chandler, AZ
Sat Mar 3, 2012
You guys at Trulia must really be bored! Nothing better to do than post 'bait' questions for RE agents and brokers?? Wow...
0 votes
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