Calculating Closing Costs?

Question

Is there a general rule of thumb or percentage of purchase/selling cost for calculating closing costs when buying & selling a rehab flip? I'm just trying to make sure that I'm running my numbers right. Any feedback is much appreciated, thanks!

Matthew Rembish · Answer

Adam Bartomeo

I think that's exactly the kind of formula I'm going to follow from now on. Thanks!

Matthew Rembish · Answer

Kirky Galt

I never thought of that, I'll definitely give it a try. Thanks!

Adam Bartomeo · Answer

As you have already read, closing costs are similar to real estate as they are local in nature.

You should be able to get pretty close if you can figure out what the % charges are for state, county, city, also if financed.

You will also need to understand what the buyer and seller pay for. This is determined by local traditions.

If I remember correctly I use 1.4% and it gets me within a couple of hundred dollars. But this is for Lee county FL.

Matthew Rembish · Answer

@James Syed

Thanks James!

James Syed · Answer

Welcome to BP.

It depends what county you are in. In my market, closing cost is between $1500 - $3000 depending on property.

Hope it helps.

Matthew Rembish · Answer

@Bryan C.

I wish I could go all cash haha, but I'll remember that for when that day comes. Thanks for the feedback!

Matthew Rembish · Answer

@Ndy Onyido

Wow, really? I was told 5-6%. I guess it all depends on your area, but thanks for the input!

Matthew Rembish · Answer

@Wayne Brooks

Thanks Wayne, that's actually what I ended up doing. He gave me a pretty good idea of what I'd be looking at.

Matthew Rembish · Answer

@John Mathewson

That's a great way to look at it. I was figuring about 4-5% for the closing costs and about 5-6% for the agent, but I like the idea of building in that 1% cushion.