Cost when you would buy a house and then sell it

2 Replies

Hi there, another question from this newbie

If i wanna buy a forecloser house from $50.000, what cost i need to add in my calculation when i would pay cash?

1:inspection $300/400 

2:Survey letter $300

3:termite inspection $65

4:recording deed $20

5:septic inspection $250

Did i miss something?

Now if i would sell it after i rehab it?

1: tittle insurance $450

2: documentary stamps of deed $280

Thanks again upfront for your guys help

Up front you will also have insurance.  

Do a "hold open" on the initial title policy (which is normally paid by the seller) and then have the title company re-issue it.  The cost will be based on the difference in value rather than the full price.

You may have loan related fees when you purchase, if you're using a loan.  If not, an appraisal is not mandatory.

You will have a bunch of title company fees on both ends.  Best to call a few title companies and discuss with them.

You've missed the biggie on the selling end - real estate commissions. Typically 6% of the selling price. Even if you try to FSBO it, you'll pay for the buyer's agent commissions. That's usually half the total commission. If you refuse to pay this, agents just won't show your property. You might get away with using a flat fee listing agent. But you MUST get the rehabbed property on the MLS to get the best price.

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

Lock We hate spam just as much as you

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here