Closing costs
The fees and charges paid at closing beyond the price of the home. Includes lender fees, title fees, recording fees, prepaid taxes, and insurance. Usually 2% to 5% of the price for buyers.
Your Room opens on going under contract and closing, with the offer and everything before it already ticked.
Organize my saleFree to set up. Pay once when you list: $89 or $189. 7-day refund.
See how it worksWhere this comes up in a sale, and what follows
- Go under contract (comes before)
Part 1 of 4
Why a seller cares
They come off the top of your price before you see a dollar, and they are the difference between the sale price and what you walk away with. Knowing them early is most of knowing your number.
Part 2 of 4
A simple example
On a $300,000 sale, title and settlement fees, the owner's title policy, recording fees and a property tax credit can add up to a few thousand dollars, before any agent fee.
| The line | A typical seller-side amount on $300,000 |
|---|---|
| Owner's title policy | Roughly $1,000 to $1,500 where the seller pays it by custom |
| Settlement or closing fee | A few hundred dollars |
| Prorated property tax | Whatever is owed for the days you owned it this year |
| Agent fees, if any | The largest line by far, as agreed in the listing agreement |
The seller's closing costs are a handful of lines, and the agent fee is the one that decides the size of the total.
Part 3 of 4
What people get wrong
That the 2% to 5% figure applies to sellers. That is the buyer's side; a seller's costs depend mostly on agent fees and local custom.
Part 4 of 4 · where to read next
Where it appears in the sale
What a definition is, and what it isn't
Keighbor is a software company, not a law firm, brokerage, or tax adviser. This is general information, not legal, tax, financial, or real estate advice about your sale. Your situation may differ. Before acting on a contract, disclosure, title, tax, or pricing question, ask an appropriately licensed professional in your state.
Written and researched by Keighbor Research · drawn from the reference glossary · how we research and check what we publish
In your Room, this word explains itself where it appears.
Your Room defines closing costs in the step you meet it in, beside the document or the date it belongs to. Free to set up, with an agent or on your own.
Organize my saleFree to set up. Pay once when you list: $89 or $189. 7-day refund.