Ok, I have two potential sellers in line right now, but I am still confused on figuring in closing costs to determine my offer. I am not sure how to estimate how much they are and exactly how to figure them. I don’t want to eat all of my profit because I mess this up. Also, does it make it less if the buyer is paying cash?
Thanks for any help!
When you are wholesaling a deal…you are not paying any closing costs. Now if you are going to buy the house from the homeowner then you will have closing costs.
The Seller closing costs will be:
Title insurance (purchase price figures this amt. (title co can tell you this)
Settlement/Closing Fee $125-175 (title company can tell you this)
Wire/Overnight Fees $25-100
Sheila
When I say wholesaling I mean signing an Option to Purchase Agreement and then selling the home to my buyer. The seller would direct deed the property to my buyer. So if this is the case are any closing costs associated?
No, I don’t think you would have any closing costs in the scenario you describe, basically you are selling your option. The end buyer and seller would pay the closing costs.
You are right, I will probably Assign my Option Agreement to my end buyer for a fee. Thanks for all of the help. Is there any way for me to give the seller an estimate of her closing costs? Also, will I just physically give my Option contract and Assignment Contract to my end buyer and he chooses title company or do I need to choose the title company?