Closing Cost

[Tristian Cox]

In New Jersey what are the maximum amount of closing cost, that a seller can come sell to me for. I will possibly be buying a triplex for 285K? What can I expect to pay in closing cost?

[Fred Heller]

That depends on whether the purchase is financed or if it's a cash deal. A big chunk of the buyer's closing cost is associated with obtaining the loan (origination fee, etc.). I've seen cash buyers pay as little as $1200 for closing costs, while financed buyers pay several thousand.

The general rule of thumb I've always heard is that the buyer's closing costs for a financed purchase is somewhere in the 4% of the sales price range give or take. But that's a very rough estimate.