$2000 for closing costs on a 5k sqft. lot?

I recently called the listing agent on a HUD owned 5000 sqft. vacant lot in Chicago, IL that was listed at $500 bucks. The area is very depressed and I was leaning toward a new construction for the space.

My mouth hit the floor when he stated that to purchase the lot with him would cost me $2,500. Is that normal?

Thanks guys