You’ve got your down payment. You’re qualified to buy in the condo or co-op. And you’re all set with moving forward with a mortgage. But don’t get caught off guard by co-op and condo closing costs!
Co-op and condo closing costs frequently catch both new buyers and new sellers off guard. It’s something that is rarely factored in when contemplating whether or not to buy or sell a home. But the information below can help you to avoid any unpleasant (and costly) surprises when you get to the closing table.
Closing Costs for Condos/Townhouses & 1-3 Family Dwellings
There’s also a quick rule of thumb to help you determine how much you should factor in for co-op or condo closing costs. If you’re hoping to buy a co-op, plan on setting aside 2 to 3% of the purchase price for closing costs. For condos, you should plan on closing costs equal to 3 to 5%. New developments, however, are a different story. You’ll need to plan on around 6% (or more) depending on whether or not you’re in a market where concessions are happening.
It’s important to note that these are just estimates. Only your attorney and mortgage broker can give you precise information in advance of your closing. But the preceding information at least gives you a ballpark idea of what you’ll be facing so you can be more prepared.
Have more questions or concerns about buying or selling a home? Feel free to reach out to me. I’m always happy to help!
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