FSBO Closing Costs Question? Newbie (2nd deal) - Posted by Crash

Real Estate Investing
#1

Posted by Stacy (AZ) on October 23, 1998 at 23:55:39:

Minimum, you should get a title insurance policy (that’s how title companies make their money). You could ask for a termite inspection, or “Wood Infestation Report” to be paid by the seller, or split the cost, and there are recording fees that are relatively small. This is for Phoenix…your mileage may vary. Various other things could be factored-in, such as an inspection, which I feel is worth every penny when I’m buying. All this is negotiable.

Stacy

#2

FSBO Closing Costs Question? Newbie (2nd deal) - Posted by Crash

Posted by Crash on October 23, 1998 at 22:17:51:

I am purchasing a SFR FSBO investment property using a 1st on my primary residence for financing (seller not interested in carrying note).

The seller is inquiring about the closing costs. Since I am refinancing my primary residence to purchase this investment property would there even be any closing costs since I am paying closing fees on the refinance?

If there are closing costs on the investment property, what would they typically be, and who usually pays? Is it split 50/50?

As usual, a hearty “THANKS!”, in advance, for any advice.

#3

Re: FSBO Closing Costs Question? Newbie (2nd deal) - Posted by Dave T

Posted by Dave T on October 24, 1998 at 24:24:56:

Yes, there will be closing costs. You will want to purchase title insurance, and there will be costs incurred for recording the deed and title transfer. Additionally, your area may also have tax stamps.

You will want a title search done to uncover any undisclosed liens and you will also have to pay your lawyer for the costs of preparing the deed and conducting the settlement. There may be other costs involved based upon your specific property and location.

The buyer and seller share of all of these costs can be negotiated.

#4

Re: FSBO Closing Costs Question? Newbie (2nd deal) - Posted by PBoone

Posted by PBoone on October 23, 1998 at 22:23:22:

All areas of the agreement are negoiatiable. We have closed some where seller pays everthing including ALL associated closing cost and there have been some where we split 50/50 or we pay more depending on the deal.
What is “customary” in a given area does not matter to us. If all we did was “customary” deals then we would put up 20% on every deal and get convential financing (which we do not)
Pat

#5

Re: FSBO Closing Costs Question? Newbie (2nd deal) - Posted by Crash

Posted by Crash on October 23, 1998 at 23:36:18:

Since this will be a cash deal, will closing costs still be incurred?