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?
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
Nobody can help me with this .....
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.
Jon Holdman, Flying Phoenix LLC
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