Closing costs are all those extra fees and expenses you need to cover when you buy or sell a home. They’re what make the sale official and actually transfer the property. For buyers, these costs usually run between 2% and 5% of the purchase price. Sellers pay more, typically 6% to 10%, mainly because of agent commissions.
With mortgage rates settling down but home prices still high, it’s smart to know these costs inside and out. That way, you can budget right and negotiate with some confidence. Some fees are negotiable or can be split, but others are set in stone or required by law. Here’s a breakdown of the most common closing costs on both sides.
Typical Closing Costs for Home Buyers
Buyers usually pay 2% to 5% of the purchase price at closing. Most of that goes to the lender, but there are plenty of other charges mixed in. Here’s what buyers usually pay for:
- Loan Origination Fee: 0.5%–1% of the loan amount. The lender charges this for setting up your mortgage.
- Appraisal Fee: $300–$800. Lenders want to know the home’s value.
- Credit Report Fee: $25–$50 per borrower.
- Title Search & Title Insurance: $500–$2,000. You cover the lender’s policy; the owner’s policy is optional but worth considering.
- Home Inspection: $300–$600. Not always a true “closing cost,” but it’s paid around the same time.
- Escrow/Settlement Fees: $350–$1,000. This pays for the third party organizing the closing.
- Prepaid Items: Property taxes, homeowners insurance, and prepaid interest—usually two to six months upfront.
- Recording Fees & Transfer Taxes: These vary a lot by location; sometimes the seller pays, sometimes you do.
- Survey Fee (if needed): $400–$1,000.
- HOA Transfer Fees (if there’s a homeowners association): $100–$500.
If you want to save, try shopping around for lenders, ask for seller concessions, or look into “no-closing-cost” loans (just know you’ll probably pay a higher interest rate).
Typical Closing Costs for Home Sellers
Sellers usually get hit harder; about 6% to 10% of the sale price goes to closing costs, and most of that is for agent commissions.
Here’s what sellers usually pay for:
- Real Estate Agent Commissions: 5%–6% of the sale price, split between listing and buyer’s agents.
- Transfer Taxes / Deed Recording Fees: These depend on your state or county, and sometimes the buyer covers them.
- Title Insurance: In many states, sellers pay for the owner’s policy ($500–$2,000).
- Escrow / Settlement Fees: $350–$1,000, sometimes split with the buyer.
- Prorated Property Taxes: You pay your share up to the closing date.
- HOA Transfer Fees & Estoppel Letters: $100–$500 if you’re in an HOA.
- Attorney Fees (if needed): $500–$1,500, depending on your state.
- Seller Concessions: If the market’s slow, you might pitch in for the buyer’s costs, repairs, or a rate buydown.
To cut your costs, try negotiating the commission, selling your home yourself, or using a flat-fee listing service.
How Bergen Realty Team Can Help You Buy Or Sell Your Home
Bergen Realty Team takes the guesswork out of closing costs. We walk you through every fee so nothing catches you off guard. Our team looks over your purchase agreement, lender estimates, and title paperwork to spot ways you can save and negotiate better.
We know what’s normal in your area and are up-to-date on 2026’s lending rules. The whole process feels a lot less stressful when you’ve got an expert in your corner. Click here to contact our team and secure the services of the most qualified agents in the area!