1st investment property - purchase question.

5 Replies

I have a property that is a 'short sale' which I am interested in purchasing.

The bank just accepted my full cash offer and I have a few questions as this is my first purchase. 

After requesting the HUD, I see that the bank is paying the real estate agent 6% of the purchase price. Also, since this is a cash offer, I have a few questions on the settlement charges.

The purchase price is $185k... what should be the average closing costs in NJ? 

Title examination
Realty Transfer Fee
Realty Transfer Fee Tax

As far as I am concerned, what other additional costs should a buyer pay beyond the title search and transfer tax?

Thank you for your time and comments!

Yes,mother are paying an agent, it's the only way they do short sales. Buyer closing costs are generally area custom, but banks may not pay some charges normally paid by seller, in some cases. Your costs should be detailed on your HUD.

@Brandon L. I am represented buy an agent that is a double agent - representing both sides.

I am being quoted settlement charges: 

$533 'title services and lender's title insurance'
$1,011 'owner's title insurance' 

Does this make sense? The r/e agent isn't helpful at all. 

@Sabi Const if you are working with a dual agent, your interests are not really represented at all. I would suggest retaining an agent to represent you, and you can present these questions to that person. 

@Sabi Const , Brandon is correct in that your interests are not fully represented, however I believe at this juncture it is too late to retain an agent to represent you. Your offer, made through the listing agent, has already been accepted.

You can have an attorney represent your interests. But your agent should be able to answer these questions. If they continue to be unhelpful, contact their employing broker and ask them for help.

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