How much in fees and closing costs would I pay on a $200k house?

Question

There is a house raffle near my aunt's house. The house is worth approximately $200k. The raffle instructions state that the winner assumes all fees, local, state and federal taxes, and financing costs. This includes, but is not limited to, closing costs and state and federal taxes. About how much money is it going to be to take care of all these fees and costs?

Thanks

Answer 1

As a raffle, you would have to pay close to $100k I would estimate roughly.....

It would be considered a prize, and in order to accept the prize, you would have to pay taxes on it.

Here in Mass, a local business raffles off a new Harley every year, my friend works in the financial dept. of the business. The winner this year had to pay $7000 in federal taxes, and nearly $2000 in state taxes, BEFORE he could give him the title to the motorcycle.

That is on a $28,000 motorcycle, and you're talking about a house, there are closing costs involved, as well as title fees, ect..., so about $100,000 if not more.

AVOID it at all costs, the owner is prob just looking to get out of a bad mortgage before foreclosure, and most people don't realise they have to pay nearly 50% of value on a prize or gift. And what happens if the owner doesn't sell enough tickets to cover the mortgage owed, if owed? You won't get that ticket money back I'm sure.

Answer 2

3-5%,maybe more depending on the real estate taxes in your area

Answer 3

Its hard to say as it varies so much state to state.  I would think 3-8K would be about right (unless there are any fees related to this special case I am not aware of - and any fees the bank charges for a mortgage would be on top of this) but again it varies alot by state.  If you want a really good number go get prequalified at a bank, they'll give you a good estimate for the state you are in.  You could also fill out an application at eloan.com online and get the same sort of info.