Closing Costs?

15 Replies

What does this phrase refer to exactly? Where is the money going to and how much, on average (for whatever niche) do you spend on this step?

Thank You!

@Isaac Schulman  

Basic closing costs are going to be the lender costs (origination points, discount points, appraisal, processing fee, credit report, flood cert, etc) and Title attorney fee's (title insurance, title search, closing fee, mortgage recording fee's, taxes etc).  Many of these fee's are based off the loan size and state/county taxes, so it is difficult to tell you an average without knowing more information.  Unfortunately I can tell you NY is probably the most expensive state for closing costs in the nation, there is a large tax they charge.

Depending on how you decide to actually get started I can tell you that all cash transactions are easier and have lower closing costs then sales when a bank is involved. 

In New Jersey, purchase closing cost is around 1.5%; sale's is around 7%

I purchased a foreclosure with 100% cash and my closing costs (includes titles insurance) were about $900. I should've shopped around to get it down to $700.

I just closed last week on a Multi-family in Northern NJ. Here were my costs to evaluate and also the closing costs using a bank loan. Very Expensive.

Home Inspection$667.00

Termite Inspection$0.00 (Included in Home Inspection Fee)

Radon Cannister Inspection$0.00 (Included in Home Inspection Fee)

Oil Tank Sweep$250.00

Home Appraisal Fee$575.00

Survey$0.00 (I made the sellers do this. They paid $ 2500)

Subtotal Our Fees to evaluate/Inspect the Property$1,492.00

Settlement Charges Breakdown

Loan Origination Fee$805.00

Credit Report from Loan Company$14.00

Tax Service$90.00

Flood Certification$8.56

Title Services and Title Insurance$2,885.00

County Clerk Govt Recording Fee$420.00

Credit Back for Recording Fee as we have connections (-$150.00)

Attorney Fee$1,500.00

Subtotal HUD-1 Page 2 Settlement Charges $5,572.56

Mark, just to put your numbers In perspective and be of more benefit to readers, what was the purchase price, loan amount and how many units this was for. 

We figure 3% of the purchase price for closing costs.  This does not include funds for immediate repairs, utility deposits, and funding the operating account.

@Mark Langdon   

 Survey$0.00 (I made the sellers do this. They paid $ 2500)

Was this something that's negotiated with the seller? This is the first I am hearing of this. Is it common? Thanks

@Mark Langdon  Thank you so much for all the info!

However, I would love to know the Loan Amount, Purchase Price and Amount of units as well to give perspective @Jeff Greenberg  

so 3% is standard for closing and it depends on the loan amount .

What about when you SELL?  Every place is different, but what is the average cost of sale (as a percentage) to use when calculating closing costs?

I'm in the process of vetting my contract to purchase another SFR (yes!!) and told my agent/pm that I would agree to the sellers price as long as they paid all closing costs and replaced deck. They agreed to pay $4600 for closing costs which I'm expecting in GA will be $4000 (3% of 135k). What is the $1000 earnest money I have to put down? I remember this years ago, but what is it for?

@Zach Adams Late to this post but definition of earnest money is: 

"An earnest money deposit shows the seller that a buyer is serious about purchasing a property. When the transaction is finalized, the funds are put toward the buyer's down payment. If the deal falls through, the buyer may not be able to reclaim the deposit."


I know this post has been dead for awhile, but for anyone else looking in the NY area, my estimated closing costs on a Condo I just had an offer accepted on are much, much higher, so I'd highly recommend requesting the seller pay all or part of your closing costs.

Agreed Price: 155,000

Taxes: 4300/year

HoA: 300/month (not sure if this matters but all my lenders ask for this)

Estimated closing costs have been between 8600 - 9200 from two different lenders so far. I have a few calls out for more estimates, but figured this would help someone out. I had no idea they were going to cost this much... I'm tempted to cancel the deal. :( 

Remember closing costs are more than just the lender's closing cost. See the items previously mentioned.

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