Buying Costs are the costs you incur when you purchase a property. The bulk goes to title work and attorney's fees to review closing documents, plus a few hundred dollars for a property inspection. If you are financing, you will have additional costs covered under Financing Costs.
Three ways to enter them
On Step 4 of the Flip Analyzer you have three options:
Lump Sum. Enter a single figure such as $2,000 as a placeholder.
% of Purchase. Multiply a percentage by your purchase amount. 2% of $300,000 is $6,000.
Detailed. Build an itemized list, entering each cost as a dollar amount or a percentage of purchase.
Typical buying costs
Inspection costs, $350 to $500
Title search, around $500
Attorney fees, around $500
Courier fees, $50 to $100
County recording fees, $50 to $100
Miscellaneous processing and document prep, $250 to $500
As a general rule of thumb, Buying Costs run 1 to 3% of the purchase price.
Read the full article: What are Buying Costs?