if the property is for sale for 29,000 dollars and i want to pay cash is that all it will be or do i still have to pay closing and taxes?

Asked by Girscht, Ozark, AL Mon May 3, 2010

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Don Tepper’s answer
Don Tepper, Agent, Burke, VA
Mon May 3, 2010
Jason covers some of the major points.

One thing you're likely to run into is a transfer tax. Many jurisdictions charge a fee every time a property is bought or sold. Alabama does have such a tax. See http://www.ncsl.org/default.aspx?tabid=12661 I don't know whether your county would also impose a tax.

Beyond that, there are usually some relatively minor fees for deed recordation and such.

Then there probably would be property taxes prorated for the remainder of the year.

A title or settlement office can tell you what the minimum requirements are.

Then, as Jason says, you might negotiate who pays with the seller.

Hope that helps.
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Jason Stevens, , Englewood, FL
Mon May 3, 2010
Paying closing costs is something that you can negotiate with the seller, so no one can give you an answer to that. Do you plan on having a home inspection and if it warrants a septic and well inpsection? How about termite and/or wood destroying inspection? Are you getting home owners insurance and flood insurance (if applicable)

Although these itmes aren't considered "closing costs" these are items that most buyers don't take into consideration when buying a home but they most certainly contribute to the bottom line and what you have to pull out of yoru pocket. A good rule of thumb at your price point when paying cash is to have 3-5% of the contract price set aside for closing costs and cost of purchase. This again will depend on what you decide to do or what is needed in terms of inspections

I'm not sure how taxes are paid in AL but I would imagine that you would at minimum be responsible for a portion of 2010 taxes at closing. Taxes have to get paid.

Good Luck with the purchase..
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