Real Estate Closing Costs

Real Estate Closing Costs and fees will be assessed before and during your closing. Many of these fees can be paid by either the Buyer or Seller, depending on prior negotiations and/or state law requirements. Typically, the Buyer covers most of these costs. All closing costs are itemized in a HUD-1 Settlement Statement. This statement provides a comprehensive breakdown of charges imposed on both the Buyer and Seller and is provided to both parties before the closing.

While the following list represents most of the fees associated with property purchases, please note that it is not exhaustive.

Lender Fees/Mortgage Fees and Points – This amount can vary with each lender. Typical charges include application fees, credit report fees, and origination fees. There are no lender fees for cash transactions.

Title Insurance Fees – Various components of title insurance fees include owner’s policy, lender’s policy, lien search, title exam, and closing endorsements. The owner’s policy fee is based on the amount of the purchase price. There is a fee of $575 up to the first $100,000. As well as $5.00 for every $1,000 over the first $100,000. For example, if you purchase a home for $120,000 the Owner’s policy will cost $675. The lender’s policy fee can be anywhere from $100 to $200. (Not needed on cash transactions.) Other fees mentioned above should not exceed $900.

Recording Fees (Deed and Mortgage) – $10 to record the first page and $8.50 for each additional page.

Documentary Stamps and Fees – These are on all Deeds and other instruments relating to real property. A fee of .70₵ is charged for each $100 of value paid, also known as consideration on all mortgages. A fee of 35₵ is charged for each $100 of the mortgage amount. There is also an intangible tax charged in the amount of 20₵ for each $100 of consideration.

Brokerage Fee – $295

Survey – The typical cost for a survey on residential property should not exceed $500.

Home Inspection, Wind Mitigation, and Four Point Inspection – Home inspection charges on a single-family residence are often based on the square footage of the home. For a home that is 1,500 square feet or less, the cost is approximately $350 to $400. However, please consider there are also wind mitigation and four-point inspection reports. Both of which will be required by homeowner’s insurance. The cost of each report is between $75 and $100 each.

Pest Inspection Report – Typical cost is $90

Appraisal Fee – Always required when a mortgage is needed, and can cost anywhere from $300 to $500.

Homeowner’s Insurance – Must pay 1 year’s premium up front on or before closing whether or not you have a mortgage. If you have a mortgage, an amount equal to 1/12 of the annual premium will be calculated for a lender-required escrow account. This portion may be included in the closing costs. The cost of homeowner’s insurance varies depending on the location of the property, the construction of the property, the age of the roof and windows, etc. Things to consider: is it in a high-risk flood zone? Is the home construction masonry block or wood frame?

Property Taxes – If you acquire a mortgage, a portion of the property taxes will be collected at closing to be placed in your lender-required escrow account.