How to Save on House Closing Costs
Americans, in an average year, spend more than $100 billion on housing purchases if you figure the amount they actually will pay on the life of the loans that they take out. There are ways to strategically cut down your little slice of inflated costs and all you need is a little business savvy.
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Instructions
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Save the most on your closing by negotiating it into the offer you make on the house. Bid on the house you want and have your agent tell the buyer that you will pay this amount if they will pay for the closing costs. This can save you a bundle of cash and it's done quite frequently so you needn't feel strange about making this a part of your offer. This is an especially good tactic if the house has been for sale for a long time or if the housing market is not going well.
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Got your home picked out? Get professional help at the onset of the buying process and then let them help with the negotiations. They know exactly what they can and cannot negotiate. Make sure that you hire an attorney familiar with real estate law. Don’t rely on your Uncle Joe’s golf partner to know all the little ins and outs. The fee you pay will be well worth the money you save in nearly all cases. Speaking of fees, know whether your attorney charges a percentage of the house price or a flat rate fee. It may mean a huge difference in how much you're charged.
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Check with banks and credit unions to finance your home. You want to close your home with the best financing terms that you can find. Sometimes the smaller places really want your business and sometimes the big guys can offer better deals, so do your homework. Your lawyer or Realtor may know of other investors that may do business with you for a better deal as well.
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Go into the closing with all the relevant information you can find. For example, find out how long the last owner had the house. If he owned it for a few years or less, you may get away with getting an amended survey instead of paying the $600 or higher hefty fee a complete survey would cost.
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Go into the closing with a mindset prepared to negotiate some of the charges. There’s no real fixed broker fee you pay to the real estate agent or company, although the banks and Realtors will never tell you that. Ask them to reduce their fees. If they need the sale, they may be willing to do so, which can save you a nice chunk of change when you close.
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Remember that most of the savings you'll be able to garner will happen before you get to the closing itself. Read as much as you can. Check out the References at the bottom of the article for timely information. Get good advice from Realtors and attorneys in the field and you should be able to get the best possible deal when you actually close the sale on your new home.
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Tips & Warnings
Always have your eye on two or three houses that you'd be happy living in.
It will cost you - sometimes a great deal - not to do your homework.
