Cost to purchase

Just wanted to clear something up from the home study course. My take away from it is that it will likely cost 10-15k to close on even a smaller park after all inspections and appraisals.

I have a local broker suggesting to me it’s usually 1-2% of purchase price. He would like to unload his friends 100k park on me, which is not a good deal. Even if I was interested, 2k doesn the sound like much due diligence.

Anyone have current averages to close on say a park worth 200-500k or up to a million.

Thanks,

Ken

The cost of third party reports is roughly the same whether the park is 10 lots or 200 lots. That’s why it’s hard to make sense of buying really small parks. That being said, if the seller will carry the paper, your only third party report costs are typically a Phase I for $2,000 and maybe a survey update for $2,000. Its the lender who runs up the tab with the appraisal and a more in-depth survey normally.

Thank you.