Negotiating Closing Costs

Negotiating Closing Costs

Investor · Charlotte, NC · Member since 2017 · 7 posts · 2 votes
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
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Jordan MoorheadBusiness Member
Real Estate Agent · Austin, TX · Member since 2015 · 5k+ posts · 3k+ votes
8y

@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.

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  • Rental Property Investor · MN · Member since 2017 · 864 posts · 555 votes
    8y

    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

  • Real Estate Agent · Garden City, NY · Member since 2016 · 3k+ posts · 1k+ votes
    8y

    @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.

  • Jordan MoorheadBusiness Member
    Real Estate Agent · Austin, TX · Member since 2015 · 5k+ posts · 3k+ votes
    8y

    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.

  • Real Estate Agent · Garden City, NY · Member since 2016 · 3k+ posts · 1k+ votes
    8y

    @Jordan Moorhead

    always hard to ask for that after the contract is signed.

  • Jordan MoorheadBusiness Member
    Real Estate Agent · Austin, TX · Member since 2015 · 5k+ posts · 3k+ votes
    8y

    @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.

  • Real Estate Agent · Garden City, NY · Member since 2016 · 3k+ posts · 1k+ votes
    8y

    @Jordan Moorhead

    Given the loan estimate, I suspect the OP is past the inspection stage.

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