For starters you're going to pay $22,000 plus closing costs, which include your attorney's fees, transfer taxes, and other charges. The bank pays the broker (could be a flat fee.) You will get that information from the bank's/seller's broker.
But there's more. I have purchased an REO property, I've been through it personally, and one thing you must realize is that the building or apartment is going to need work---and maybe more work than you can ascertain just by looking. It's also possible that there are liens on the title that need to be taken care of; that happened to me.
So, to buy an REO, you will need: $Purchase Price + $Your Closing Costs + $Unknown Amount to Cover Problems. So if you buy one of these, make sure you have a $$$ cushion after closing, you are almost certainly going to need it.
Rutenberg Realty New York City
The amount you will pay varies depending on the verbiage in the contract. The purchase price is $22,000 regardless, the question becomes how much are your closing costs. As a general rule of thumb you will pay up to 6% of the loan amount if you are getting a mortgage. If you are not getting a mortgage then you simply have to pay for a title report, attorney and some other incidental fees. The seller also may request that you pay the transfer taxes ( for $22K that would be about $308.00).
Hence, if your getting a mortgage your closing costs would be about $2500.00, if your buying all cash your probably looking at about $1500.00. Most of that cost will be the attorney fee. Make sure you have a good real estate attorney helping you.
If I can be of further assistance please let me know. Good luck!
Mitchell S. Feldman
Associate Broker/ Director of Sales
Madison Estates & Properties, Inc.
Office: (718) 645-1665/ Cell: (917) 805-0783