If you or someone you know is buying residential or commercial property wouldn’t reducing the closing costs be a very good thing?
Well you are legally entitled to try!
When you sit at a real estate closing table with your attorney as the purchaser of a piece of real estate, at least in New York, it can seem as if you have just entered a marathon of check writing.
The fact of the matter is that there is really no way around the majority of these expenses, but what if you could try and reduce the amount of money that you need to pay the company providing the title insurance?
A property buyer is free to choose their title insurance provider!
You may not realize that you have this option because the attorney representing you will typically take care of ordering the title insurance, but using that firm may not always be the most cost effective way to go!
While the actual title insurance premium is set by the State of New York and is non-negotiable, there are other fees involved with generating the title that can vary greatly from firm to firm.
These fees include those for searches and items such as a property survey.
While one company might charge $300 for a basic search that costs them $150, another firm may simply charge the property buyer the cost, $150.
If you were to combine all of these required additional searches and other items, also known as “junk fees”, and then add together all of the mark-ups being charged by some firms over and above their cost, the excess expense for the property buyer could be well in excess of $1,000.
Once again property buyers often assume that they have no say in the choosing of the company that will be providing the title insurance for their transaction.
But they can!
It may take an extra phone call to ask a title insurance firm what the title bill would be for your given transaction and then compare it to the company that your attorney or bank is recommending that you use.
But if you have the potential to save hundreds or maybe even over $1,000, wouldn’t it be worth it to try?
Hallmark Abstract Service LLC
Michael Haltman, Partner
131 Jericho Turnpike, Suite 205
Jericho, New York 11753
At Hallmark Abstract Service, we work harder to make your closings easier!