Closing costs details, who pays ?

4 Replies

Quick question, So I usually calculate 3% in my deals analysis for closing costs. Or that was what’s recommended to me from other users here on BP. So my question is, what does that include? I know sometimes the seller and buyer kind of splits the closing costs, but Does that 3% account for just my half or all of the closing costs (even seller costs). Because I plan on including multiple offers in my offer letter and one includes that I will pay for all closing costs.. is that already assumed that I should or usually how does it work, splitting the closing costs? Thanks in advanced! Peter

@Peter Bui You may want to partner with your lender for an estimate of closing costs using the specifics of the property that you're interested in purchasing and the type of financing that you have secured, during that conversation you can ask how closing costs are calculated to see if the magic number of 3% makes sense in your situation

Usually for the buyer this includes, property taxes, insurance, title company fees, and lender origination fees.

I’m not a huge fan of using percentages to estimate these costs. I’ve bought houses that cost half as much as others and the closing costs are the same.

I estimate 4-5k per closing assuming you’re using financing and it’s residential. Commercial would be higher