Any Non-Closing Costs (if paid with cash)?

Question

As a buyer, what costs would be incurred if I were to buy a piece of property with 100% cash? (I could finance, but I want to avoid closing costs, interest, etc..)

If I do purchase with cash, what costs will the seller have to pay other than commission costs?

Jerry W. · Answer

The only ones I can think of not mentioned by @Nick Keesee are closing costs, usually about $200 here which are normally split between Buyer and Seller here, and cost of filing your deed.

Chris Martin · Answer

The answer depends on what's in the purchase contract. In my area, the seller generally pays the commission. For an REO (bank owned) and HUD, sometimes the seller pays for the buyer's attorney (if any(see last paragraph)), title insurance, recording costs, and prorated amounts for county taxes and HOA (if applicable). Hazard insurance is also a good idea. Just for organization, I'd buy hazard and title insurance and pay for it via the HUD-1. For a "conventional" closing you'll need to look at your contract.

If I buy at the courthouse steps, there could be literally no extra costs. If you do the sale yourself, the Trustees mail you the Trustee's Deed and a check payable to the county clerk to cover the recording costs. I don't do this, though, ...

I have my own attorney interface with the seller attorney or the trustee, so my costs are maybe $500 to cover the incidentals (title, hazard insurance) and their legal fees.