Quick Question on Purchase Costs...

Financing, Hard Money Lenders, Private Money
1

Hello All,

I have a quick question regarding Closing Costs. What are they in terms of percentage of the Purchase Price? How do you calculate the Closing Costs of any purchase? Also are there any other costs associated with a home purchase? Currently I have Closing Costs (unknown %) and Realtor fees of 6%.

I’m sure there will be more questions to come, but thank you in advance for your replies.

-Gary

2

Are you asking from a buyer or seller point of view?

3

Mark Thanks for responding.

I am inquiring from a Buyers point of view.

I believe that the person who purchases property from me would pay or incur the closing costs, if I understand correctly.

So this request is as if I were purchasing a peice of property and I would like to be able to use as a formula for any transaction.

Thanks.

4

If you are purchasing to re-sell consider these expenses in addition to your rehab/repair costs.

Real Estate Selling Commissions “I pay 3%”
MLS Listing Fee’s “I pay $300”
Utilities “Based on time on market”
Property Insurance “Based on time on market”
Property Taxes “Based on time on market”
HOA dues “Based on time on market”
Interest on Money “Based on time on market” and whether using “cash or loan”
Title Insurance “I pay $500”
Survey “I pay $250”
Appliance Insurance for buyers “I pay $300”

There are many variables that affect your bottom line… :biggrin