Posted by HR on February 08, 2001 at 21:27:54:
I agree with the others completely. Focus on big dollars, not little pennies. Don’t grind your closing attorney, insurance agent, subcontractors (within reason), etc if you want these folks to be reliable members of your ongoing team. Thus, who do you grind? The seller! (presumablly you will only buy one house from them, or a few at best). Thus, buy the house as cheap as you can and don’t squabble over pennies.
Regarding skipping the title inspection and title insurance, NEVER! Here’s two recent examples.
Tomorrow (hopefully) I close on a reo I’ve had under contract for months. I planned on closing in 30 days, by Christmas, but it turns out the the mortgage company that’s selling the house isn’t even on title! Sure, title is supposed to be good. Sure, all the liens are supposed to be cleaned off thru foreclosure. (So why is that city health code lien still there, too?). I’m buying this place for $2000. My atty is getting all the necessary docs to refile their previous sale, which was never recorded, so I can file thereafter. Not doing a title search on this would have created a monstorous gap. Not a good idea (and title insurance for a property less than 10K? It’s only about $50. Please. Splurge).
Deal #2. Buying for 10k. Also has title problems. Been tied up for 60 days and could be tied up for another 90. Uggg. Never would have discovered the problems without a title search.
Moral of the story: get out of the typical newbie “let me save myself a penny” mentality. Grind the seller. Save thousands. Then you can pay your team well so they can protect you and do the job right.