Can someone help explain the differences in closing costs for a condo versus buying a 2 family home?

Asked by Marie Ingrisano Isner, Brooklyn, NY Fri Mar 30, 2012

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6
Anna M Brocco, Agent, Williston Park, NY
Fri Mar 30, 2012
If looking to purchase in the near future, do consider working with an agent of your own, he/she will be your best guide. Be aware that a mortgage pre-approval letter is required in order to determine your price range and for any offers to be taken seriously, therefore if you haven't done so yet, do visit with any licensed loan officer to determine qualification; your loan officer can provide good faith estimate of closing costs. Generally one of the differences is the condo's HOA and monthly fees; each HOA is different, some may include utilities, others not, etc.--again consider working with an agent.
1 vote
unkhkhih, , New York, NY
Thu Nov 7, 2013
I’m an agent working for ReMax NYC Midtown and I’m always doing my research on property and stay in touch with the best professionals. If you simply need advice please email me at KDrake@remaxnyc.com. I'm experienced with closing deals with rentals in the 11201 zip code. I’ve provided links below regarding any concern you may have.

Finance Advice:
http://www.fpanet.org/LifeGoals/BuyingaHome/

Bank Expertise:
David.Axelrod@bankofAmerica.com

Appraisal Expertise:
LadSurs@gmail.com

Legal Advice:
http://www.lawhelpmn.org/issues/housing/buying-and-owning-a-…

Advice for Buyers:
http://portal.hud.gov/hudportal/HUD?src=/topics/buying_a_home

Advice for Sellers:
http://www.realestateabc.com/homeselling/

Tax Concerns:
http://www.tax.ny.gov/pit/property/

Stats:
http://www.citi-habitats.com/‎
0 votes
My NC Homes…, Agent, Chapel Hill, NC
Sat Jun 30, 2012
In terms of closing costs there really isn't going to be much difference other than the amount needed for setting up your escrow accounts, the amount of the Title insurance, and whatever moeny is require by the HOA of the condominium.

That said not all condos can be financed (in fact more than half the developments throughout the country cannot get traditional financing for myriad reasons) You should speak to your lender first before making an offer on a condo to see if they can in fact offer you financing for it.
0 votes
Christopher…, Mortgage Broker Or Lender, Garden City, NY
Sat May 19, 2012
The only difference would be paying for a Codo Questioniare Form. (this may cost anywhere from $0.00 to $150.00) Otherwise the costs should be around the same.
0 votes
Mitchell Fel…, Agent, Brooklyn, NY
Fri Mar 30, 2012
Dear Marie:

If you are buying a new condo, often times the developer will want you as the purchaser to pay the transfer taxes and other fees. This can increase your closing costs by as much as 2% of the actual sales price. If this is not new construction then the seller will not be expecting you to pay those fees, hence your closing costs primarily will be the same as a 2 family home.

HINT: When buying new construction, upon making your offer, ask the developer if they want you to pay those closing costs, if they say yes, tell them you do not want to pay those closing costs when you make your offer, you may be pleasantly surprised!

If I can be of further assistance, please let me know. Good luck!

Sincerely,
Mitchell S. Feldman
Associate Broker/ Director of Sales
Madison Estates & Properties, Inc.
Office: (718) 645-1665/ Cell: (917) 805-0783
Email: MitchellSFeldman@aol.com
0 votes
Thank you for the response. So the condo would be a resale, therefore no 2% transfer tax. The closing costs are generally what percentage of the total purchase price for both condo and 2 family home?

I'm trying to determine the estimated costs for both so my husband and I can decide between staying in the trendy neighborhood (condo) and moving out a little further (house). I'm trying to compare apples to apples as much as I can so we can make a decision based on location and not just money.
Flag Fri Mar 30, 2012
Joann Welniak, Agent, Destin, FL
Fri Mar 30, 2012
First, when buying a condo, you will have condo association dues including in your closing costs. If buyer a single family home located within a homeowners association, you will also have home owner association dues. When buying a condo, the dues will include in most cases, the exterior of the building home owners insurance. A separate policy is needed to cover contents. When purchasing a single family home, the home owners insurance policy must be purchased in total. With a condo, some utilities may be included in the HO dues, where in a single dwelling, they are not. There are a few small charges Title companies charge for a condo, and not for single family.
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