Selling cost

11 Replies

If I am a real estate agent and I am looking to sell my first rehabbed house, how much should I account for selling cost for a property that's worth $204,000 after repair? 

I typically expect 1% of the sales price but it could be slightly less if you thought ahead when you bought the property and purchased a binder with the title company. Or it could be more if your buyer is using a VA loan.

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It depends...

Closing costs have customary buyer/seller splits in each area, but the split is typically negotiable.  Depending on the type of loan your buyer is getting, they may ask for closing cost help, up to 3% of the total sale price.  Some places have transfer taxes which can substantially increase the cost.  How much do you plan to pay the selling agent?  Etc...

The best thing to do is to consult with your local title company about the typical buyer/seller splits and the typical costs of selling a house in that price range.  Then do your best to estimate how much you'll be paying for buyer help based on the type of buyer and type of loan you'll likely be dealing with.

When I am selling a flip I done...I do not factor in at all the fact that I am a real estate agent.  The deal either stands on it own, or it doesnt. Yes I will get a commission in the end, but I dont look at that as part of the flip...that is part of the agent side of my business.

They would need to be calculated based on your town. There are a lot of variables. Taxes to town/state, commissions, or not, lawyer fees etc. The current towns I am dealing in one does taxes in arrears which greatly changes what I owe when I buy/sell. 

About 2-3% plus agent commissions, if any.  Uncle Sam will be at your closing table, too.  He likes 40% normally for short-term trading, but will accept a little less for lower income brackets.  Cheers!