Master the Art of Negotiating Closing Costs for Your House

Real Estate Agent with Alaskan Spirit Realty Brokered by Realty ONE Group Aurora 17864

Selling a house is a rich experience that leaves you wiser and highly efficient. You cannot just hire a Realtor® to do the job for you and several things need your personal attention. Closing costs are a part of every real estate transaction and without proper knowledge; you might end up paying them from your share. If you are all set to close the deal, here are some tips to keep it profitable.

Is it a buyer’s or seller’s market?

For seller, this is a lucky period because most of the markets within the U.S. are still seller dominated. Nature of the market is responsible for making this decision and in a buyer’s market; sellers might have to bear some of the closing costs. On the contrary, a seller’s market help you keep the upper hand and you can offer some to no incentives for bearing the closing costs.

Negotiation Tips for Closing Costs


A little Advice for Sellers and Buyers: What are negotiable closing costs?

Honestly, it does not come as a surprise when neither sellers nor buyers are aware of the negotiable closing costs. Keep in mind that government fees, taxes, and third-part fees are out of your pocket and you cannot negotiate them.

On the contrary, there are a dozen other types of fees that are imposed by the lender and this is the place to practice your negotiation skills. Let us make it easier by putting up a list.

·         Application fee: In some cases, you might have to fill out an application fee just to apply for the loan. Ask your lender to waive off the fee or adjust them in closing costs only.

·         Title insurance: Well, you need title insurance under any circumstances but you do not have to accept the one offered by your lender. You can do market research and choose a company that has lower fees. Make sure to visit all the available options in the market.

·         Commitment fee: Do not be surprised when your lender asks for a commitment fee. For some, it might seem strange but this is a lender protection tactic. You can ask your lender to waive it off and if that is not possible, ask them to remove it if the deal passes through.

·         Miscellaneous charges: In the closing cost column, you can see miscellaneous charges. Make sure to ask about these costs and especially if they form a substantial part of the closing cost.

·         Discount points: Discount points form a substantial part of closing costs and for every discount point; you get one percent lower interest rate. It is an excellent practice provided you have the money to pay otherwise, you can ask the lender to remove these points. Usually it will change your monthly payment, so make sure to get the new figure before approving anything.


In addition to it, lenders often put junk fees among the closing costs and all you need to do is to ask about them. Once discovered, lenders will be more than happy to waive it. The key in negotiating closing costs is to understand that the lender would like to close the deal as much as you do and it is best to be ready to walk out of the room in case the closing costs are too high. A little confidence and simple questions can help you save hundreds of dollars. 

Have questions? Ask me.
Yvette Belisle
Real Estate Brokers of Alaska
Email Me Now
Licensed In: Alaska
License #: 17864
Alaskan Spirit Realty | (907) 868-2811
Real Estate Brokers of Alaska | 1577 C Street, Ste 101 | Anchorage, AK 99501

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Holly Biltz
Charles Rutenberg Realty - Saint Cloud, FL
I sell the dream of Home Ownership!

Great post, good information, thanks for sharing.


Sep 01, 2014 11:09 AM #1
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Yvette Belisle

Associate Broker, REALTOR®
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