Closing Costs!
What kind of costs are associated with buying a new house to be flipped right away. Taxes, fees, insurance? Lets say the house is in a good neighborhood, and is worth $100,000. If I buy it for $60,000 what would some of my costs include?
are you getting a loan for the property? If so anywhere between 1.5% to 3% of the loan amount.
What if I have a lendor who will pay cash for 100% of th $60,000?
Even if the lender covers 100% of the financing for the property, that does not mean the closing costs are covered. Closing costs usually run between 2-3% of the purchase price. Usually the buyer pays for the closing costs, but the seller can agree to pay all closing costs and the buyer would not come out of pocket.
Tanya
the customary amount of closing costs varies from state to state. In PA both seller and buyer have closing costs. If the buyer is financing the purchase, buyer's closing costs can be 6-7% of the purchase price. Usually, seller's closing costs in PA consist of about 1+% of the sale price + real estate commission, if any.
The custom in PA is for buyer and seller to split transfer tax fees. Closing costs here generally include pro-rations for taxes, utilities, etc., financing, recording and other fees, title insurance related costs.
For your area, I suggest you contact a title company who may be willing to ballpark the costs for you. Also ask your loan officer to give you an estimate.