Negotiating Closing Costs

6 Replies

Hi guys! My partner and I are about to close on our very first investment real estate deal. We had a quick question regarding closing costs. We initially estimated closing costs to be about $3000, but our lender came back with their initial estimate at double that, $6000. There are so many fees listed in the loan details... $200 here, $300 there. You know the drill. Anyways, wondering if anyone has had success with having lenders waive certain fees or reduce them, and how they went about doing that. ANY input is appreciated :) thanks BP community! Lauren G

Is there anyway you could have the seller cover any of it?! Closing on my first deal right now too and the seller agreed to cover a bit of it

@Lauren Goetz

Only fee can negotiate with the lender is their application fee, or ask for a credit to offset some of the closing costs. But, if you get a credit, it will just show up in your interest rate.

Total closing costs are usually around 4% to 5% depending on the prepaid items like 6 months in property taxes. High tax states will have higher closing costs.

Yes you can but usually you do that with the initial purchase agreement. In most cases I ask the seller to cover 3% of the purchase price in closing costs and negotiate from there if they won't.

@Christopher Phillips completely agree. If you find something reasonable in the inspection it warrants asking but I always believe in asking for what you want for up front.

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

Lock We hate spam just as much as you

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here