When you buy a home, you’ll be responsible for paying for closing costs – the money necessary to close out your transaction and turn someone else’s home into your home.
But what many people don’t know is that you can negotiate some closing costs, which means keeping your hard-earned money in your own pocket.
Here’s what you need to know.
Can You Negotiate Closing Costs?
Closing costs can total between 2 percent and 7 percent of a home’s purchase price, so as you can imagine, that’s a pretty wide range. If you’re buying a home that costs $250,000, your closing costs could be anywhere between $5,000 and $17,500.
However, you can negotiate some of the fees, such as:
- Inspection fees
- Lender fees
- Homeowners insurance
Here’s a closer look at each.
Negotiating Inspection Fees
Smart buyers have homes inspected before they buy – it’s just what you should do. That way, if something’s wrong with the home, you’ll know what you’re getting into (and you have the option to back out if it’s too bad).
You can choose the home inspector you hire, and that’s good, because different inspectors charge different rates. Just remember, though, that experience is more expensive – and you want to hire an inspector who knows what he or she is doing.
Negotiating Lender Fees
Talk to your lender about what fees are negotiable on your mortgage. You might be surprised to learn that lenders are able to make adjustments in some areas.
Negotiating Homeowners Insurance
You get to choose your homeowners insurance provider, which means you should definitely shop around. The average premium is over $1,000 per year, but if you research the companies that offer you policies and compare quotes, you’ll be able to find the best deal for your needs.
Are You Selling or Buying a Home in Aspen?
If you’re ready to sell your home in Aspen, Woody Creek, Basalt, Carbondale or Snowmass, we may be able to help you.
Get in touch with us right now to find out how much your home is worth – and discover how we’ll be able to help you sell it quickly and for top dollar.
If you’re also looking for a home for sale in Aspen or a nearby community, check out our listings by price:
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- Over $1 million
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