How much to budget for closing costs for high rise condo
Buyers: 2 to 4 percent of the cost of the apartment
A good rule of thumb is to set aside roughly 2 to 3 percent of the purchase price or 3 to 4 percent if the apartment is over $1 million.
Closing costs will be higher if you’re buying a condo over a single-family home. First off, you’ll have to cover title insurance. The state determines rates for the insurance itself, and there are also various administrative charges, so expect to spend about $3,000 to $4,000. Please Co-ops don’t require title insurance, since technically there’s no transfer of title for real property, since you’re buying shares in a corporation.
Secondly, if you need a mortgage to buy a Boston high rise condo , expect to pay $2,000 to $3,000 for bank fees, including your bank attorney’s fees and an appraisal, which may start at $500 and climb quite a bit higher, depending on the purchase price. You’ll also have to cover a mortgage tax of 1.925 percent for loans over $500,000 or 1.8 percent for loans under $500,000. Again, this only applies to condos.
The last big charge is for attorney’s fees, which vary quite a bit, but tend to range from $2,000 to $5,000 for lawyers who specialize in real estate deals.
Sellers: 8 to 10 percent
Sellers can expect to pay a lot more than buyers, largely because they have to cover the brokers’ commission, which is traditionally 4-6 percent (split equally between the listing and buyer’s brokers). (Though when the market is in a cycle that favors sellers, it’s more possible to negotiate this down to around 4%.)
Boston high rise condos