% to budget for seller closing costs?

Question

I am trying to figure out seller closing costs on the back end of a flip before I set my offer price. Does anyone have a formula or percentage that has proven reliable?

I've searched the BP forums and didn't find anything concrete.

I'm in Denver and the house is in Golden if that makes a difference.

Ophelia Nicholson · Answer

I always just do a rough 10% of sales price.. Assuming you don't have a license.. Sometimes it might go a bit above 10% but the formula is pretty close.

2.5%-3% for Your agent

2.5-3% for buyers agent

3% most buyers ask for closing cost help

1% for title company fees/transfers taxes..

Bill S. · Answer

Title companies have rate sheets they will give you so you can know what most of the costs are ahead of time as well. They are based on value too so it varies.

Chris Adams · Answer

On lower priced properties, say $100k ish selling price we have a lot of Fannie, USDA loans around me that require 3% down by the purchaser. And most agents ask the seller for that 3%. So i calculate that into my cost, and hope to at least split it with the buyer.

I end up figuring 9%-10% to cover commissions, seller concessions and  closing cost when I do my budget, this way I'm covered for a worst case scenario.

You can also ask your agent for a sample Net Sheet to be sure you haven't forgot any other cost.

Anson Young · Answer

Back end, when you go to sell?

Usually factor in $1750 for title fees (usually high, but prepare for the worst: owners title policy, taxes, water/sewer etc), possibly 3% for buyers closing costs, add in your realtor fees, then your loan costs (if any).

Bryan L. · Answer

There varies by location.  In my area, the standard closing costs for the seller are:

Deed Prep:  $75

Closing Fee: $100 - $200

And that's it.  Nothing else for the seller unless termites are found (also Realtor's commission of course)

Now, on the other hand, most first-time buyers in my area have no money and they need assistance from the seller for their closing costs.  Usually runs 4-6% of the purchase price and is not required, but negotiable.

Bill Coleman · Answer

Thanks guys!

% to budget for seller closing costs?

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