What are realistic soft costs (in California) ?

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Hi there,

Having trouble getting a grasp on what soft costs might really look like. This would hypothetically be a situation in which I'd pay all cash for a 150-300K house, then rehab and sell. Also excluding repair costs.

I recently bought a home to live in and there were huge closing costs & taxes involved. However, I did take out a large loan. I understand that this changes drastically when one pays all cash for a house.

I know there's the 6% agent commission - But as far as taxes, insurance, marketing, and anything else I'm a little hazy. I am in California btw.

Thanks so much for your expertise!

[Mike G.]

Let's say you buy a house for $200k, with no loan. Your purchase costs will probably be around $1000 - $1500, depending on if you have inspections done.

If you hold for 6 months, holding costs would probably be between $3000 and $4500. Your biggest costs will likely be property tax and insurance. Your utilities costs will vary based on how much landscaping you have to water, if there's a pool, gardening, etc.

Let's say you sell for $300k. Agent commissions would be $15k - you should only pay 5% commission. Escrow fees, transfer tax, home warranty should add up to around $2k. Title insurance should be around $1200, unless you got a binder when you bought, in which case it would be less.

Obviously, these numbers are only ballpark. Costs vary based on location (such as property tax, transfer tax, insurance) and home specifics.