BUYING COSTS

Learn how to calculate Buying Costs when buying your first house flipping project.

Buying Costs

How to Flip Houses / Buying Costs
House Flipper
FAQ
What are buying costs?
​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.
House Flipper
FAQ
What are the typical buying costs & amounts I can expect to pay?

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.
As a general rule of thumb, Buying Costs will be between 1 to 3% of the Purchase Price.
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MENTAL NOTE
Note: When purchasing a property the Seller will generally pay both commissions (buyer's & seller's agent commissions).

House Flipping Calculator

To analyze your deals efficiently and systematically you may want to consider building your own deal analysis spreadsheet or utilizing a pre-built software like our FlipperForce software.  

Our FlipperForce software has a 'Deal Analyzer' tool that is pre-built with a step-by-step process to help you can calculate your Buying Costs, Holding Costs, Selling Costs & Financing Costs for your projects.

Having a system in place will ensure that you don't miss any costly items in your analysis so you make the right offer for your property!

​Learn more about our House Flipping Calculator
House Flipping Software App
NEXT: Calculating holding costs

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