Is there a standard closing cost amount or percentage? Say you had the money to pay the full asking price for these two cases...
Cases:
House $10,000 to $25,000
House $200,000 to $300,000
what would the estimated closing cost be? Do you have to pay taxes and insurance upfront if you pay the house out of pocket?
2006-07-02 10:45:49 · 3 answers · asked by gabyrig 3 in Business & Finance ➔ Renting & Real Estate
The buyer's closing costs could be $0 especially if you pay full asking price. If you don't want to pay any closing costs, you can ask the seller to increase the purchase price and add the contingency that "Seller will pay $_____ credit to buyer for closing costs."
When you say "pay the house out of pocket" do you mean pay all cash without bank financing? If you pay cash for a house in Illinois, property taxes are usually credited to the buyer. This is because in Illinois 2005 taxes are payable in 2006. So a buyer in 2006 usually gets a tax credit at closing for any unpaid 2005 taxes. If you pay all cash with private funds, hazard insurance is not require. I recommend you get insurance effective the day of closing whether its required or not. You wouldn't want to lose your investment, right?
2006-07-02 12:54:33 · answer #1 · answered by Superman P 2 · 0⤊ 0⤋
No standard formula. I have heard people say about 2% is a good estimate. Depends on the state you live in as well. Good luck.
2006-07-02 23:02:51 · answer #2 · answered by unclejesse1 3 · 0⤊ 0⤋
Closing costs are based upon a number of things including prepaid taxes, insurance, escrow fees and loan fees.
The title company should give you a good faith estimate.
2006-07-02 17:50:58 · answer #3 · answered by Not Tellin 4 · 0⤊ 0⤋