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Updated about 10 years ago on . Most recent reply

User Stats

174
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39
Votes
Justin C.
  • Rental Property Investor
  • NW, PA
39
Votes |
174
Posts

My closing costs seem waaaay too high, thoughts?

Justin C.
  • Rental Property Investor
  • NW, PA
Posted

Hi guys,

I'm closing on my first property this Friday and just received the closing costs form.    

Purchase price $17500 in cash

- $105 Title search

- $100 city engineer fee

- $500 attorney fee

- $125 agreement papers

- $75 mechanics lean draft/filing

- $240 1/2 transfer tax

- $500 tax split

- $165 garbage, and other misc fees...

$1810 closing costs which equals 10.4%

The $165 is a number that I had to come up with as the spreadsheet didn't equal the actual costs of $1810.  The paralegal said it was garbage and some other prorated split.  10.4% of the purchase price seems very high.  There is still plenty of spread to absorb this but I was thrown off a bit.  Please let me know your thoughts and any suggestions.  

Thanks in advance

Most Popular Reply

User Stats

23,418
Posts
13,508
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Wayne Brooks#1 Foreclosures Contributor
  • Real Estate Professional
  • West Palm Beach, FL
13,508
Votes |
23,418
Posts
Wayne Brooks#1 Foreclosures Contributor
  • Real Estate Professional
  • West Palm Beach, FL
Replied

Seems right.  Most fees having nothing to do with the purchase price.   Don't know what the "tax split" is, property taxes are prorated.

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