Closing costs

[Donna Salmiery]

This is an part of an ad I saw on Craigs List:

If you fix and flip
After repair value $115,000.
Purchase, plus costs $15,760.
Repairs (estimated) $45,700.
Holding costs $2,400.
Closing Costs $11,500.
Gross Profit $39,640.

I don't understand the closing costs. I imagine there is a title search, but what other costs are there, especially if it is a cash purchase? Can someone explain? The closing costs are almost as much as the property itself.

[Brie Schmidt]

Originally posted by @Donna Salmiery:

This is an part of an ad I saw on Craigs List:

If you fix and flip
After repair value $115,000.
Purchase, plus costs $15,760.
Repairs (estimated) $45,700.
Holding costs $2,400.
Closing Costs $11,500.
Gross Profit $39,640.

I don't understand the closing costs. I imagine there is a title search, but what other costs are there, especially if it is a cash purchase? Can someone explain? The closing costs are almost as much as the property itself.

 It is going to depend on your area... there could be local and state transfer taxes, commissions, existing liens, ect.