Hello experts…looking at a mixed use property listed for 35k…can probably get it at 30k. All things being equal…how much should I expect to bring to the table? If an offer is accepted at 30k…I know that can’t just be my bottom line. I’ve never purchased a property without financing so any info will be great!
Our lawyer usually charges $400 for closing.
Recording fees are usually cheap. Figure $50-100 max
Title insurance is probably just a couple hundred for such a small purchase price.
You should get a credit from the seller for prorated property taxes so far this year. That should lower the amount you have to bring to closing.
Thanks Justin, sounds like not too much hidden in fees. Another question…there is a listing agent. All agent fees are paid by the seller…is there any way to limit his fees to lower the selling price. I do not want to use an agent and since he will be the only agent I would think he’d try to double up on his commission. Am I off base with this thinking?
Yes, you’re off base. Technically, it’s at the discretion of the agent. The seller is locked in by contact and can’t cancel his commission arrangement. Now if it’s just an agent in the brokerage and not the broker, it means the agent has to split with his brokerage the commission so his discretion is even less. If you were dealing with larger amounts and it’s been on the market for a while, you might be able to negotiate it down. But, when you’re dealing with small amounts like a $35,000 offer (6% is $2,100–even less if split 40/60 broker/agent), he probably is not going to budge on the commission because it’s not a lot money we’re talking about here. If you’ve got a good deal, let the agent get the 6% commission so the agent doesn’t go out of his way to help a competing offer because you’ve irritated him on the particulars. Don’t miss the forest for the trees.
Dave is right and I’ll add for cheaper purchase prices - the commission is often more than 6%. We have bought several houses where it was a flat commission of $2500-3000 because 6% of a $15000 purchase price isn’t much. We bought one house for 9k and the bank only ended up with a little over 4k after everything came out of the purchase price.