Can You Negotiate Closing Costs?

Buying a new home can be quite an expensive process, and it is important for most people to save money where they can. One question that many people consider is whether or not they can negotiate closing costs during the transaction. In many cases, third parties generate the closing costs and typically don’t change; additionally there are some costs that can’t be negotiated. Here are three things to remember about negotiating closing costs.

What Are Closing Costs

Closing costs are fees, which are charged by lenders and third parties, and related to the purchase of the home. When the title of the home is conveyed to the new buyer, this is typically referred to as the closing. The closing costs for a home don’t necessarily always go to the buyer or the seller, that is determined by negotiations at the end of the transaction. The closing costs likely incurred include loan origination fees, discount points, appraisal fees, title searches, title insurance, survey, taxes, deed-recording fees and credit report charges.

Negotiate with the Seller

You can always negotiate who pays the closing costs with the seller. In some cases, the seller will be willing to “pay” a buyer to finalize the sale and purchase the home. When the seller pays the buyer’s closing costs, it give the buyer more incentive to close the deal on the home right away. Additionally, another thing to consider is that you can get a no-closing cost mortgage, which means you won’t pay any of the closing costs when you close on the mortgage.

What Are Negotiable Closing Costs

There are a number of closing costs in any given transaction that are negotiable. Those costs include: origination fees, appraisal fees, administrative fees, attorney fees and title insurance fees, among others. Even if you think you are getting a good deal at the time, it is always important to remember that these things are negotiable and can save you money in the long run.

Buying a home is a huge expense and a milestone in your life. To save yourself time and money, know what costs are negotiable and who you can negotiate with to make sure you get the best deal for you. For more information about negotiating your closing costs, visit here.