Buyers closing cost

4 Replies

Hey BP community! I am in the process of buying my first property! It’s two SFH that I can’t wait to get rented! However, I’m hung up on closing costs. What is a typical percentage I should be charged? Currently the numbers my lender has shown me is suggesting about 8%.

Price point and local transfer taxes are going to heavily influence this. 3% is typical where I am. Very cheap properties however will have a higher percentage as fixed costs for low prices then become a higher percentage than they would be on an expensive property.

Also keep in mind prepaids and escrow are not closing costs, its just you funding those items before they are to be paid.

using a percentage isn't a good way to compare as this will vary based on loan size /  purchase price and location ...its  best to outline the loan amount  and the  specific  costs so anyone on the board  familiar with Utah can  help

the percentage is going to increase or decrease based on the amount of the transaction and what your title co. is charging you.  as was noted above, percentage is not a good indicator of price.

There is a kind of a floor - where it's not going to get any lower - for example, "legal" costs could be a flat $400, or $600.  But then a title policy is based on either the loan amount or the sale amount.   So if the purchase price is super low, the title policy could be pretty low, but the legal fees aren't really going to change much.