Tax and commision fee to buy/sell home building

Asked by cuichunrong60, Los Angeles, CA Mon Jun 11, 2012

I am a Chinese student with F1 visa.
(1) If I buy a home building at a price of $ 500,000 around the University of Southern Califonia in los Angeles, How much extra fee, such as tax, commision and so on, could I have to pay?
(2) f I sell a home building at a price of $ 500,000 around the University of Southern Califonia in los Angeles, How much extra fee, such as tax, commision and so on, could I have to pay?
(3) If I rent the home building above, how much money can I get each month?

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Answers

4
Lynn Le Glai…, Agent, Los Angeles, CA
Tue Jun 12, 2012
Hi Cui,
As a buyer, you don't have to pay commission. A realtor's services are free toyou. It's just a good idea to be loyal as he/she is paid when you close a transaction. Taxes in California are 1.25% of the purchase price. Closing costs on a $500,000.00 purchase would be about $4000.00 - $6000.00.
Selling is a different story. The US government will want to see that you've paid taxes or a percentage of the selling amount will be withheld for tax purposes. About this matter, you'll have to talk to an accoutnant.

Renting a house around USC can range in income from $800.00 a month per room to about $5000.00 a month for a large house.

I hope this helps you.

If youhave anymore questions, feel free to call (323)219-4480 or email at lynnleglaire@gmail.com.
good luck!
0 votes
Sona Gallatin, Agent, Santa Clarita, CA
Mon Jun 11, 2012
If you buy, you don't pay the commission, commission is paid by seller. Tax issues, ask a certified accountant, Realtors are prohibited to answer or advise regarding taxes.
Selling, the commission is paid by seller and it is negotiable. Los Angeles it ranges between 5 to 6 percent of the selling price. How much tax you'd have to pay, ask your accountant.
Rents in the are really depend on how close to USC. I recently sold a duplex to a client very close to USC, he is renting one on the units for $2,075. For 3 bed 2 bath. Leaving my clients mortgage portion less than. $ 500. total PITI.

Good luck
0 votes
Bill Hooper, Agent, Los Angeles, CA
Mon Jun 11, 2012
Hi Cuichunrong60,

If you're the buyer the typical closing fees run approximately 1-2% depending upon your financing arrangements. If you're the seller closing fees will run approximately 7-8% depending on the commission rate you offer. It is hard to assess the rental value without knowing more about the subject property. Size, location and room count will be a consideration here.

I hope this helps you.

Bill Hooper
Re/Max
bhooper@remax.net
0 votes
Alex Nesic, Agent, Beverly Hills, CA
Mon Jun 11, 2012
Hi, short answers to your questions:

1) Property taxes in LA county are 1.25% of purchase price. As a buyer, you don't pay commission to your agent, the seller does. Only other fees would be escrow costs which could range from $4000-$6000 on that price.
2)As a seller, commission is negotiable with your agent but traditionally between 5-6%. Escrow fees and transfer taxes would be in the $8000-$10,000 range and you would have to pay taxes on any profit made from the sale.
3) Rents would depend on how many bedrooms/ baths and other factors but could easily be determined.


Call or email me to discuss your options in greater detail.

Regards,


Alex Nesic
Realtor
Coldwell Banker | Beverly Hills North
Cell: (323) 570-1441
Office: (310) 777-6393
DRE Lic # 01884185
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