Closing Costs at Sale
Transaction costs when selling the property as a percentage of sale price.
Example Result
Sample DataBased on a sample $385,000 property with $2,850/month rent, 20% down, 7% interest rate.
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Closing Costs at Sale Formula
User Input (%)
Where to Find This Value
Here's where you can find the value for Closing Costs at Sale:
Title Company Estimate
Title/escrow company provides an estimate of seller closing costs
Industry Standard
Seller closing costs are typically 1-3% of the sale price (title, transfer taxes, etc.)
Used to Calculate
Closing Costs at Sale is used as an input for these calculations:
Why It Matters
Selling costs reduce your net proceeds and overall return on investment. Combined with commissions, total selling costs can reach 8–9% of the sale price. These costs make short holding periods unprofitable — you need enough appreciation and cash flow to overcome transaction costs on both the buy and sell sides.
Detailed Explanation
Closing Costs at Sale are the transaction costs the seller pays at closing when selling the property, expressed as a percentage of the sale price. These include title insurance (seller's portion), transfer taxes, attorney fees, prorated taxes, HOA transfer fees, and other settlement charges. Typical range is 1–3% depending on location and transaction complexity. This is separate from real estate agent commissions.
Example
Based on a sample $385,000 property with $2,850/month rent, 20% down, 7% interest rate.
Related Calculations
Total Cash to Close
UCash needed at the closing table to acquire the property.
Total Cash Invested
UTotal cash committed to the property: closing costs, rent-ready, reserves, and negative cash flow.
All-In Cost Per Unit
UTotal acquisition cost (including closing and rehab) per unit.
All-In Cost Per Square Foot
UTotal acquisition cost per square foot.
Rehab Cost Per Square Foot
2Rent-ready/renovation costs divided by square footage.
ARV Estimate
1After Repair Value — estimated property value after renovations.
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