Nobody Markets Commercial
Property the way we do.
Property the way we do.
Robert Farnsworth 801-898-8810
Randy Cummins 801-641-8004
Ashlee Bonham 801-602-6850
Stockton Farnsworth 801-664-3370
Robert Farnsworth 801-898-8810
Randy Cummins 801-641-8004
Ashlee Bonham 801-602-6850
Stockton Farnsworth 801-664-3370
Understand the true costs of buying or selling commercial real estate in Utah. Get an itemized estimate before you close.
Estimate your total acquisition costs including due diligence and financing
Calculate your net proceeds after commissions, fees, and closing costs
These figures are estimates based on typical Utah commercial transactions. Actual closing costs depend on the specific property, lender requirements, title company, negotiated terms, and transaction complexity. Always request a detailed settlement statement from your escrow officer before closing.
Seller credits toward buyer closing costs are common in commercial deals. Ask your broker about structuring credits.
Credits are negotiated into the purchase agreement. The seller agrees to pay a portion of the buyer's closing costs at settlement. This effectively reduces the buyer's out-of-pocket expense without lowering the sale price, which benefits both parties during financing.
Title insurance rates can vary between providers. Request quotes from at least two or three companies.
Title companies often offer commercial discounts on larger transactions. On a $5M deal, even a small rate reduction can save thousands. Ask about simultaneous issue discounts when both owner and lender policies are purchased together.
The settlement statement itemizes every cost. Review it carefully at least 3 days before closing.
The HUD-1 shows buyer charges on the left and seller charges on the right. Look for prorated items, lender fees, and any line items you did not agree to. Ask your broker or attorney to explain anything unfamiliar before the closing date.
Beyond closing costs, lenders typically require 3-6 months of reserves for debt service, insurance, and taxes.
Lenders want assurance you can cover payments even if income dips. Budget for reserve requirements, immediate repairs, tenant improvements, and potential vacancy carry costs. A 6-month reserve fund on a $15K/month payment means $90K set aside beyond your down payment.
Our team will prepare a detailed cost breakdown specific to your property and transaction.
Questions about closing costs? Call 801-898-8810