Which costs are potentially negotiable in closing costs?
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,