You Pay All Transfer Taxes
This is a reminder to all REO investors or would-be REO investors:
If your state has transfer taxes that are normally split between the buyer and the seller, most banks make you pay both sides on REO deals.
Be sure to factor that into your numbers!
Transfer Taxes can be significant. In PA they are 2%. In DE they are 3%.
What's more, the PA law is complicated, but boils down to this: 2% of
EITHER - the contract price
OR - The assessed value times a factor that increases each year based on how long it has been since a county assessment
WHICHEVER IS HIGHER
So, it is possible to get a great deal on the contract price and pay more than 2% (in PA) for the tax