Sonic Title's founder Charlie Shami was recently quoted in a Redfin guide on a question every home buyer eventually asks: which closing costs can I actually negotiate?
The article — Can You Negotiate Closing Costs When Buying a Home — pulls together advice from real estate attorneys, lenders, and housing directors. We wanted to use this post to dig into the part of the closing statement we know best: title and settlement fees.
Charlie's Quote, in Context
"When buying a home, closing costs, just like anything else, are always negotiable. Every fee, or cost, can usually be negotiated."
— Charlie Shami, founder of Sonic Title (via Redfin)
That applies as much to the title side of the closing table as it does to the loan side. Title insurance, settlement fees, recording charges, and escrow fees are all line items on your Closing Disclosure — and many of them you can shop, swap, or have the seller pay.
You Can Choose Your Own Title Company
This is the single most underused right Michigan home buyers have. Under the Real Estate Settlement Procedures Act (RESPA), the buyer in most transactions has the right to choose their own title and settlement company. The lender cannot require you to use their preferred provider, and the seller cannot make it a condition of the contract in most situations.
Why does that matter? Because title fees vary widely from one company to the next, and they aren't always disclosed up front. Some title companies pad their settlement fees with line items like "document preparation," "wire fee," "email fee," or "courier fee" that can add hundreds of dollars to your closing.
At Sonic Title, our fee schedule is published — there's nothing to negotiate against because what you see is what you pay. If you're shopping title companies, ask each one for their itemized fee sheet and compare them side by side. You'll be surprised how often the same closing costs $400–$800 more at one company than another for the exact same scope of work.
Title Fees the Seller Can Cover
Charlie's broader point in the Redfin article is that closing costs don't have to come out of the buyer's pocket at all. On the title side, a few line items are common targets for seller credits:
- Owner's title insurance. In Michigan, this is customarily paid by the seller in many counties — but it's negotiable in the purchase agreement. Always confirm who's paying it before you sign.
- Transfer taxes and revenue stamps. Michigan state and county transfer taxes are typically the seller's responsibility, but on certain transaction types (FSBO, distressed sales, new construction) this can shift. Read your contract carefully.
- Settlement / closing fee. The fee your title company charges to handle the closing. Often split, sometimes paid entirely by one side. Ask.
- Recording fees and document prep. Small individually, meaningful in aggregate. These can be wrapped into seller-paid closing costs.
Lender Credits and the 3% / 6% Cap
As Charlie noted in Redfin, conventional loans cap seller-paid closing costs at 3% of the purchase price; FHA and VA allow up to 6%. Title fees count against that cap. So if you're asking the seller to cover both your title insurance and your lender's origination fees, make sure the total stays under your loan program's limit — otherwise the excess is forfeited.
Why Transparent Title Pricing Matters
The Redfin article focuses on negotiation tactics. Our take from the title-company side: the easiest way to "win" the closing-cost negotiation is to start with a title company whose fees are already fair. You shouldn't have to negotiate your way down from a padded quote — the quote should be right the first time.
Read the Full Article
Charlie's full contribution appears alongside attorneys at Mancuso Carey and other industry voices in the Redfin guide:
Can You Negotiate Closing Costs When Buying a Home | Redfin & Rocket
If you're closing in Metro Detroit and want a transparent, itemized title and settlement quote, request a quote or call us at (313) 251-5145. We'll send you our full fee schedule before you commit — no surprises at the closing table.