When figuring out comps for a property to come up with an offer, should you take into consideration the closing costs with the formula? Or would the buyer be responsible for figuring that out?
@Kaylan Haight I always think agents should help guide as much as they can. Loan officers can be helpful also, but ultimately closing costs are unique to each negotiation and a good title agent / closing attorney is always helpful. Amber at Tiago Title in Tampa is excellent.
Yes you should rule of thumb I equate closing cost as 10%, just to be safe. In a lot of cases the buyer pays the closing cost, but it’s better to be proactive then reactive
@Kaylan Haight closing costs are simply fees and expenses that the buyer usually pays when he/she purchases a home. Closing costs can run anywhere from 2-3% of the pruchase price and include cost items such as, loan origination fees, appraisel and survey fees, title/homeowner insurance, escrow fees, attorney fees, etc...
Your lender is required to give you an estimated number.
For the sole purpose of dissecting comparables, I mainly look for different factors such as square footage, number of beds/baths, location, distance from subject property, etc. I don't take closing costs into account when comparing properties, as that can widely vary between different transactions/negotiations.