Buying Costs are costs that you incur when you purchase a property.  The bulk of your Buying Costs will be used to pay for Title Work to research the title, and attorney's fees to review the closing documents. Otherwise, you may pay a few hundred dollars for a property inspection.  Note: If you are receiving financing, you will have additional costs as well, which we will discuss in the Financing Cost lesson.

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Learn How to Calculate Buying Costs using FlipperForce

Learn How to Calculate Your Buying Costs using our Flip Analyzer Tool:

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The Buying Costs on Step 4 of Flip Analyzer is used to enter the approximate costs you'll pay when you buy the property.

For your flexibility, you have 3 different options for entering the Buying Costs

• Lump Sum
• % of Purchase
• Detailed

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Lump Sum

The Lump Sum option allows you to quickly enter a lump sum amount for the Buying Costs. For example, if you just want to quickly plug in $2,000 for the Buying Costs, you can easily plug in that value as a placeholder.

% of Purchase

The % of Purchase option allows you to quickly calculate the Buying Costs by multiplying a % by the Purchase Amount you previously inputted into Step 2. For example, if your Purchase Amount was $300,000 and you plugged in 2% Buying Costs, your Total Buying Costs would be calculated at $6,000 (2% x $300,000 = $6,000)

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Detailed

The Detailed option allows you to build out an itemized list of all of your Buying Costs that you anticipate paying for the property. You have the flexibility to enter the itemized costs as a Lump Sum $ Amount or by using a % of the Purchase amount.

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FAQ

What are the typical buying costs & amounts I can expect to pay Flipping Houses?

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Typical Buying Costs

​Here's a list of typical Buying Costs and average amounts that you will likely have on your rehab projects.

• ​Inspection costs ($350 - $500) - If you are just getting started, it's probably a good idea to pay for a professional inspector to perform a full property inspection to find any major issues or concerns.
  
• Closing Costs (Generally amount to $1k to 2k)
  
• Title Search ($500) - A Title Search is performed by a Title Company to research the property records to ensure there is clean title, and no claims or liens on the property.
  
• Attorney Fees ($500) - Attorney fees pay for an attorney to review the closing documents .
  
• Courier Fees ($50-$100) - Courier fees are fees to transport the closing documents .
  
• County recording fees ($50 - $100) - Recording fees are charged by the local county recording office to record the property documents in the public records.
  
• Miscellaneous Fees ($250 to $500) - There will also likely be miscellaneous processing fee/document preparation fees.

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As a general rule of thumb, Buying Costs will be between 1 to 3% of the Purchase Price.

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