Closing cost

[Sean Gallagher]

I have a contract right now used to wholesale and its puts all closing cost on the seller.. Is this fair? Usually most serious investors are dealing with cash so there isn't as many closing fees compared to a lending process but there are still some fees that if I was the seller I would feel like I shouldn't have to pay. Like things that are for the buyer or at a buyers request, such as a survey, and say the buyer wants it appraised, thats in my contract as well for the seller to cover.

How much are closing cost usually on say a 60k cash purchase? I estimated approx 1200.00, am I close?

[Jon Holdman]

I use that 2% number for an estimate of closing costs. But its a pretty broad number including things like inspections, certifications, and fees to get utilities turned on, appraisals in addition to the strict closing costs that appear on the HUD-1.

These tend to vary from place to place. The biggest one is always the lender's title policy, which you buy if you're getting a loan. Lenders will also have a bunch of other fees. Some locations have transfer taxes. The title company will have some processing fees. The rest of it the various "recording" fees. The best way to get an estimate is to speak with a title company.