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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Jenet Levy, Agent, New York, NY
Sat Mar 3, 2012
Hmm, a question posted by "Trulia" in Trulia, listed as San Francisco and inquiring about New York.

Okay, regarding "which costs are potentially negotiable in closing costs," that depends upon whether the purchase is a resale or unit in a new development. In a new development, the sponsor expects the first-time buyer of the unit to pay the NYS and NYC transfer taxes. However, that can be negotiated. New developments also expect buyers to pay the sponsor's legal fees which, again, can be negotiated.
Purchase price, of course, is always negotiable, whether on a sponsor unit or a resale. Sometimes, if a co-op has a particularyly high maintenance fee or a condo has particularly high common charges, sometimes the seller might be willing to pick up 6 months or year of that. As far as beyond traditional closing costs, there may be some negotiation for leaving a particular item, such as a chandelier, or a wall unit that fits very well, but that's a little beyond the scope of your question.
2 votes
Sean Christie, Agent, NEW YORK, NY
Sat Mar 3, 2012
State and city transfer taxes are negotiable before the closing if it is a new development.
0 votes
Elena Ravich,…, Agent, New York City, NY
Sat Mar 3, 2012
One should keep in mind that closing costs are very different depending on the type of property, condo, coops, house, new development… In Manhattan's new developments, a buyer normally pays transfer tax and a mansion tax above $1MM price, though sometimes a developer can agree to pay either a portion of them or 100%. It all depends on market condition, demand, location, and also a stage of sales in the building (on very earlier stages buyers have more negotiation leverage, on later stages developers are not that interested in giving out concessions).

Some of the closing costs can be negotiated between seller and a buyer and some can be negotiated with a lender...

Are you looking to buy in New York? I would be happy to walk you through closing costs for a specific property and identify best options for you.

Elena Ravich
Rakita Realty
646 593 7207
0 votes
Anna M Brocco, Agent, Williston Park, NY
Sat Mar 3, 2012
Who are you looking to negotiate with--the seller, attorneys, lender.....
0 votes
Joseph Hasti…, Agent, Bayside, NY
Sat Mar 3, 2012
I agree with Jenet's answer and her speculation about who is actually asking this question and in which market. The closing costs I doubt can be negotiated successfully would be the fees your Bank will charge you if you are financing the purchase. I would also like to see someone negotiate a price on their Attorney (good luck!) as these two items are part of your closing costs.

It is possible to negotiate all associated closing costs with the seller but I believe for that your offer should be rock solid. Good luck.
0 votes
Josh Rubin, Agent, New York, NY
Sat Mar 3, 2012
Everything is negotiable, but when thinking about a credit from seller at closing, you should make sure it meets with your attorney's approval as well as that of your lender. If you were to take flip tax into consideration, building's typically require it be paid by seller, but some require that it be paid by the buyer. In cases like this, I've seen the seller take on the responsibility so it doesn't impede a prospective sale. As mentioned in another recent thread, some sellers will take on a portion of maintennce for a certain period, if it's deemed higher than comparable properties. This will often assuage buyer's concerns. We are in the middle of a transaction now where the seller offered a credit for a portion of the maintenance for a certain period of time and this seems to have worked. Again, any credit needs to be approved by the lender in the case of a sale being financed. The trnasaction we are doing is being paid for with cash.
Web Reference:  http://www.elliman.com/jbr
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