Rehab Home Closing Costs

4 Replies

I am closing on a rehab property today and was just skimming the HUD statement. I am doing a loan with a local bank. Closing costs are around 2.5% of the loan. $2290 of a $88,000 loan. Does this seem in line to you all?? Just checking to make sure I am within market. Basically all the costs are for the appraisal, Attorney, and all the title BS which seems kinda high to me.

Mack,

That doesn't sound high assuming you financed it.  

Caveat, I am from the northeast, so costs may vary. I buy my houses cash and my attorney and title fees run about that, no lender fees. I am used to slightly higher purchase prices, but those costs do not seem out of line.

Ok thanks for the feedback Brett.  Just good to know I am in a good range.  The title insurance costs always irk me for some reason...Just seems like a waste and being in the insurance business I am skeptical the policy would cover me if there were title issues down the line.  I have always been told "you always want to buy it".  

I'm not local to your market but I wouldn't expect costs to vary too much from GA to KY.  

I always buy title insurance too.  I know what you mean.  

There's a notorious case here in Louisville.  A tract of prime real estate near the interstate, enough acreage for a small subdivision, was donated to our local zoo with the caveat it wouldn't be developed.  

The zoo eventually sold it to a developer and the title examiner missed the restriction.  

The descendants had moved away so the mistake wasn't discovered until after the development was finished and the new homes were occupied by new owners.  

When the descendants found out they sued.  

I bet to this day we Louisvillian's purchase title insurance at a rate higher than the national average.  

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