Ughhh Closing Costs! How to properly estimate????

[Obed Bermudez]

Hello BP community,

I'm currently attempting to figure out how to accurately "guesstimate"  the amount of closing costs for a residential property.  I understand that closing costs include fees incurred by the title company and the mortgage company as well.

Is there a formula that anyone uses?

I was doing some research and I've seen an individual multiply the purchase price by 9% to obtain a "guesstimation" for closing costs .  I used that formula on a property purchased for $265,000 and closing costs came out to $23,850.  That number seems like much.  

My question to the experienced investor:  Is this formula viable and dependable?

Thank you in advance for your answer(s)

[Andrew Bang]

With a purchase of 265k. About $1200 for title, 6% for realtors = 15,900, if there's an HOA $500. Mortgage lender charges 1 point+ loan docs $3,650. Taxes and insurance paid up front another $1000. So $22,250. Quick estimate of 9% is in the ball park.