Any investors in Philadelphia mind breaking down the closing costs both when purchasing a property as well as when selling it after the fix. Looking to organize and make sure I am running solid numbers when analyzing deals. Rather know about what to expect ahead of time and alleviate surprises where I can.
The biggest thing I always factor in for closing costs is transfer tax and the cost of title. In Philadelphia county, transfer tax is 4.28% of the original purchase price. Oftentimes you can negotiate and split the tax with the seller bringing it down to 2.14%. Outside of Philadelphia in surrounding counties (Delaware, Montgomery), transfer tax is typically 2% so only 1% when split with the seller. Title costs always vary by the subject property so I typically estimate around $1000 for that give or take.
The biggest thing I always factor in for closing costs is transfer tax and the cost of title. In Philadelphia county, transfer tax is 4.28% of the original purchase price. Oftentimes you can negotiate and split the tax with the seller bringing it down to 2.14%. Outside of Philadelphia in surrounding counties (Delaware, Montgomery), transfer tax is typically 2% so only 1% when split with the seller. Title costs always vary by the subject property so I typically estimate around $1000 for that give or take.
I got a few pre-approval letters which was great to get a better idea when purchasing. Which listed out all of the estimated costs and was good to see before I started looking at more properties.