Estoppel fee negotiable?

[shoretodisney]

I was always under the impression that all closing costs were negotiable. Can a buyer not offer to pay/reimburse for the seller's $150 estoppel if they so choose? One broker has told me no.

 

[pzw90]

The estoppel fee is usually seen as a seller fee, unusual to even see the seller/broker ask for it. Unless you’re really lowballing and they are trying to recoup anything.

Depending on the contract and how hard it is to find what you are looking for, $150 is peanuts.

Or offer to pay the estoppel fee if the seller pays the Contract Administration Fee.

 

[shoretodisney]

The estoppel fee is usually seen as a seller fee, unusual to even see the seller/broker ask for it. Unless you’re really lowballing and they are trying to recoup anything.

Depending on the contract and how hard it is to find what you are looking for, $150 is peanuts.

Or offer to pay the estoppel fee if the seller pays the Contract Administration Fee.

Appreciate the advice but for small contracts it can make sense to include in negotiation as commissions are only paid on the price of the points as far as I know. So it can help the seller to recoup $ via estoppel reimbursement vs higher price per point offer, just like making MF reimbursement part of the offer.

Unless I'm missing something.

I really am just curious if anyone has experience to share or an official reason why that particular cost isn't able to be part of the negotiation.

 

[Brian Noble]

Could it be? Probably if you spend enough time trying to explain it. But saving the seller 10% of the estoppel fee---$15---is so marginal that it is probably not worth your time to suggest, and it won't save you much if anything in the long run. You've spent that much in the value of your own time in the back and forth just trying to get there.

 

[shoretodisney]

Could it be? Probably if you spend enough time trying to explain it. But saving the seller 10% of the estoppel fee---$15---is so marginal that it is probably not worth your time to suggest, and it won't save you much if anything in the long run. You've spent that much in the value of your own time in the back and forth just trying to get there.

Agree with you generally but there are all sorts of people out there. You're underestimating the number of buyers that may like the sound of 125pp much more than 128pp on a 50 point contract in exchange for paying the estoppel fee and not think twice or do the math. Or the number of sellers that want their ~$15!

Details aside. I think it's worth establishing whether it actually can or can not be included in negotiation. Hoping someone knows for certain.

Also, I don't like being told no by a broker that's protecting commission over telling the truth, no matter the amount at play.

 

[Brian Noble]

You are reading a lot into that no. It could be "I've never heard of that before so I don't think we can." It could also be "You are a difficult buyer, this is a competitive contract, and experience has taught me dealing with you will not be worth it."

This is also probably complicated by the fact that I believe the estoppel is paid for before closing, and the broker is not going to float that.

However, you do you.