Closing costs details, who pays ?

[Peter Bui]

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

[Caleb Heimsoth]

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