Real Estate Closing Costs Statistics by State 2024 [National Survey]
A new RealEstateBees.com survey of over 50,000 active real estate professionals found average closing costs for sellers and buyers broken down by state.
We reached out to over 50,000 active real estate professionals from all the 50 U.S. states as well as Washington D.C. to collect their insight on the real estate closing costs across the United States.
Average Closing Costs for Sellers and Buyers by State
| State | Seller’s Avg. Costs | Buyer’s Avg. Costs |
| Alabama | 6%-10% | 1%-3% |
| Arizona | 1%-3% | 1%-3% |
| California | 1%-3% | 1%-3% |
| Colorado | 6%-10% | 1%-3% |
| Florida | 3%-6% | 3%-6% |
| Georgia | 3%-6% | 1%-3% |
| Idaho | 3%-6% | 3%-6% |
| Illinois | 6%-10% | 1%-3% |
| Indiana | 1%-3% | 3%-6% |
| Kentucky | 3%-6% | 3%-6% |
| Louisiana | 3%-6% | 3%-6% |
| Maryland | 6%-10% | 3%-6% |
| Massachusetts | 3%-6% | 3%-6% |
| Michigan | 1%-3% | 1%-3% |
| Missouri | 3%-6% | 3%-6% |
| New Jersey | 3%-6% | 1%-3% |
| New York | 3%-6% | 3%-6% |
| North Carolina | 1%-3% | 3%-6% |
| Ohio | 3%-6% | 1%-3% |
| Oklahoma | 3%-6% | 1%-3% |
| Oregon | 1%-3% | 1%-3% |
| Pennsylvania | 3%-6% | 1%-3% |
| Rhode Island | 3%-6% | 1%-3% |
| South Carolina | 1%-3% | 3%-6% |
| Tennessee | 3%-6% | 3%-6% |
| Texas | 3%-6% | 1%-3% |
| Virginia | 6%-10% | 3%-6% |
| Washington | 3%-6% | 1%-3% |
| Wisconsin | 1%-3% | 1%-3% |
What Is Included in Closing Costs for a Seller?
Costs included in seller’s closing costs most commonly across the United States.
To learn more about typical closing costs when selling a property, check out this comprehensive video guide on estimated closing costs for sellers.
What Are Average Closing Costs for a Seller When Selling with a Realtor?
The most common amounts of seller’s closing costs across the United States in an agent-assisted sale.
To learn more about typical closing costs when selling a property with a real estate agent, check out this comprehensive video guide on estimated cost of selling a house with a realtor.
What Are Average Closing Costs for a Seller When Selling 'by Owner'?
The most common amounts of seller’s closing costs across the United States in a FSBO sale.
To learn more about typical closing costs when selling a property without a real estate agent, check out this comprehensive video guide on estimated closing costs for sale by owner without a realtor.
How to Reduce Closing Costs for a Seller?
Large seller contributions can eat into a seller’s bottom line. Properly preparing the home for sale and avoiding inspection pitfalls can help reduce these costs down the road.
One way to reduce closing costs for the seller is for the agent to lower their commission, since the seller is responsible for paying the agent’s commission.
Can a Seller Avoid Paying Closing Costs?
As a home seller in Missouri, it is possible to avoid paying closing costs entirely, but it may depend on the terms of the sale and negotiations with the buyer.
Here are some options to consider:
1. Negotiate with the buyer. As a seller, you can negotiate with the buyer to see if they are willing to pay for all or some of the closing costs. This can be done during the initial negotiations or as part of a counteroffer.
2. Offer incentives. You can offer incentives to the buyer to make the purchase more appealing. For example, you could offer to pay for a home warranty or cover the costs of repairs or upgrades to the home.
3. Raise the asking price. You can raise the asking price of the home to cover some or all of the closing costs.
However, this approach may make the home less attractive to buyers and potentially increase the time it takes to sell the home.
4. Consider owner financing. Owner financing can be an option in some cases, where the seller finances the purchase for the buyer. In this case, the seller may be able to negotiate a higher sale price and avoid some of the traditional closing costs.
It’s important to note that some closing costs, such as state and local taxes, recording fees, and transfer taxes, may be required by law and cannot be avoided.
However, by exploring all options and negotiating with the buyer, a seller may be able to minimize their closing costs and maximize their profits.
A seller can’t avoid the required closing costs — like transfer fees and such.
They can try to go without a realtor and without an attorney, but they would likely be leaving money on the table and could be jeopardizing the deal by not having advice on all aspects of a transaction.
If a seller is unable to afford their share of the closing costs, it can create a challenge for both parties involved. Here are a few possible options to consider:
1. Renegotiate the purchase price. The buyer and seller can renegotiate the purchase price to account for the seller’s inability to contribute towards the closing costs.
By reducing the purchase price, the buyer can potentially offset some of the expenses they would have otherwise paid as closing costs.
2. Seek seller financing. In some cases, the seller may be open to providing financing options to the buyer.
This could involve the seller lending a portion of the purchase price or even the entire purchase price to the buyer.
Find a good real estate agent or attorney to carefully structure and document such arrangements with their assistance.
3. Explore alternative financing options. The buyer can explore alternative financing options or loan programs that allow for a lower down payment or assist with closing costs.
Some loan programs, grants, or down payment assistance programs are specifically designed to help buyers who may have limited funds for closing costs.
4. Pay the closing costs independently. If the buyer is unable to find a solution that involves the seller contributing to the closing costs, they may need to assume the responsibility for the entire amount themselves.
In such cases, the buyer should evaluate their financial situation and determine if they can afford to cover the full closing costs.
5. Seek assistance programs. There may be local or state assistance programs available to help buyers with closing costs.
These programs can provide grants, loans, or other forms of financial assistance. Researching and applying for these programs can help alleviate the financial burden.
It’s important for both the buyer and seller to communicate openly and work together to find a mutually agreeable solution.
Real estate professionals, such as realtors and real estate attorneys, can provide guidance and support during this process.
Additionally, consulting with a local mortgage broker, lender, or financial advisor can help explore various financing options and identify potential solutions to address the situation.
We would ask them to borrow the funds. However, with the appreciation in this area, that is not a scenario at this time.
What Is Included in Closing Costs for a Buyer?
Costs included in buyer’s closing costs most commonly across the United States.
What Are Average Closing Costs for a Buyer When Buying with a Realtor?
The most common amounts of buyer’s closing costs across the United States in an agent-assisted sale.
What Are Average Closing Costs for a Buyer When Buying Without a Realtor?
The most common amounts of buyer’s closing costs across the United States in a FSBO sale.
What Are Average Closing Costs for a Cash Buyer When Buying with a Realtor?
The most common amounts of a cash buyer’s closing costs across the United States in an agent-assisted sale.
What Are Average Closing Costs for a First-Time Buyer When Buying with a Realtor?
The most common amounts of a first time home buyer’s closing costs across the United States in an agent-assisted sale.
How to Reduce Closing Costs for a Buyer?
Shop around! Different loan types have different closing costs.
Every lender might offer different programs and incentives, and have financially beneficial relationships with title companies and other professionals that might save the buyer some money.
Some buyers, especially first-timers, are also eligible for grant money through the state and other sources.
Finally, some sellers might be willing to contribute to a buyer’s closing costs under the right circumstances.
Much like the seller, many buyer’s fees are fairly standard such as title insurance or escrow fees.
You can always do some research or ask for a recommendation to find a good deal on an attorney, but make sure they have a real estate background and know how to bring a transaction to close with very few speed bumps.
In a real estate transaction, there are many professionals that bring a home to closing, so make sure you hire someone who won’t be the weak link in the chain.
How to Negotiate Closing Costs with a Seller?
It can be quite cost-effective for buyers to negotiate closing costs with a seller.
One of the benefits of using a real estate agent to buy a home is having them consult you about typical closing costs and fees to understand what can be negotiated.
Make a clear request that the seller pay a portion of the closing costs. Provide something in exchange, such as an early close or the removal of specific fixtures, to sweeten the sale.
Be adaptable and willing to identify a solution that benefits all parties.
Lastly, have all parties sign a written agreement.
Raise the price and wrap the closing costs in. This will only work if the home appraises.
Can a Buyer Avoid Paying Closing Costs?
Since closing costs and title fees are a part of more than 90% of all home transactions conducted in the market, typically the only true way for a buyer to avoid paying closing costs is to ask the seller to pay for them and use strong negotiation tactics to convince the seller to do so.
Not really. There may be ways to get government assistance or wrap closing costs into the amount borrowed, but it’s still really being paid by the buyer.
Are There Closing Costs Assistance Programs Available for Buyers?
Yes, there are closing cost assistance programs available for home buyers in North Carolina. Here are some options you can explore:
1. NC Home Advantage Mortgage™: This program offers up to 5% of the loan amount to use towards down payment and closing costs. It is available to first-time and move-up buyers who meet certain income and credit requirements.
2. NC 1st Home Advantage Down Payment: This program offers up to $8,000 in down payment assistance for eligible first-time homebuyers in North Carolina.
3. NC Home Advantage Tax Credit: This program offers up to $2,000 per year as a federal tax credit to help offset the cost of homeownership for eligible first-time buyers in North Carolina.
4. Veterans Affairs Home Loan: VA loans offer a variety of benefits, including no down payment, no mortgage insurance, and assistance with closing costs. If you are a veteran or active-duty military member, this could be a good option to explore.
5. USDA Rural Development Guaranteed Housing Loan: This loan program is designed to help eligible low- and moderate-income buyers purchase homes in rural areas. It offers up to 100% financing and can be used to cover closing costs.
Be sure to check the eligibility requirements for each program and speak with a lender or housing counselor to determine which option may be best for your individual circumstances.
There are multiple home buyer assistance programs in Ohio. Things such as down payment assistance, first-time home buyer programs, grants, and others.
There are qualification criteria for each program and an experienced and knowledgeable real estate lender can be invaluable in these situations.
Who Pays Closing Costs in a Conventional Sale?
Who Pays Closing Costs in a Cash Sale?
To learn more about typical closing costs when selling a property to cash home buyers, check out this comprehensive video guide on selling your house to an investor.
Are Closing Costs Negotiable?
What Are the Available Ways to Pay Closing Costs?
Why Are Closing Costs So High?
While closing costs is a general term typically used to reflect the balance to close, true closing costs consist of a variety of different charges from the local title companies/real estate attorneys handling the settlement to the lender, as well as real estate brokerages/Realtors.
The fees charged by a settlement agent typically include title insurance policy, title search, lien search, closing fee, and wire fee.
Lender fees can include origination fee, appraisal, land survey, discount points, doc stamps, and intangible taxes, recording fees, and escrow deposits (3 months of property taxes and property insurance).
Brokerage/Realtor fees can include commissions, brokerage service or transaction fee.
That depends on the contract and who pays what. Typically most of the closing costs are the prorated taxes and mortgage points.
One of the best ways for a buyer to save is to put more than 20% down so that mortgage insurance is not required.
Some of the escrow fees can be negotiated by not paying for a mobile notary and instead going into the office to sign.
Who Pays Closing Costs in a Divorce?
When selling real estate during a divorce, the closing costs are split between the two spouses. It is done either directly or through the division of the proceeds from the sale.
Each spouse is responsible for their own closing costs, or in some cases, they split the costs evenly. Sometimes they negotiate the division of closing costs in the divorce settlement agreement.
In Texas, usually, it’s the seller who is responsible for paying for the title insurance, transfer taxes, and any necessary legal fees related to selling the property.
Other closing costs, such as the commission for the real estate agents, loan origination fees, and prorated taxes, are split between the two spouses.
Again, depending on the terms of the divorce settlement agreement, other fees like the home appraiser fee, survey fees, and closing costs for the lender are split between the spouses as well.
In selling real estate when divorcing, the house is considered marital property if it was purchased together as a married couple.
Closing costs between the two selling parties can be negotiated through their attorneys if both parties agree to sell.
It can be a difficult process if one party wants to sell the home and the other wants to remain there.
Ultimately, who covers the closing costs would be up to the court as part of the divorce settlement.
Closing cost responsibility is on a case-by-case basis. If the divorce is already finalized, then the party that retained ownership of the home would be responsible.
In many cases, a couple needs to attempt to amicably agree on the status of the home.
A signed letter from a divorce attorney outlining the agreement can be provided and then closing costs or proceeds from the sale of the home can be adjudicated by the court.
If the couple does not agree, then it can turn into an issue for a judge to decide on who pays the closing costs.
What Are the Transfer Taxes in Closing Costs?
In real estate, transfer tax is a one-time tax that is paid to the local or state government upon the transfer of ownership of real estate properties.
In Philly, transfer taxes in real estate closing costs 3.278% of the property’s assessed value, in addition to a 1% commonwealth charge which results in a total of 4.278%.
This tax is paid towards the conclusion of a real estate transaction, to facilitate the legal transfer of ownership of a real estate property from the previous owner (seller) to the new owner (buyer).
In Arizona, transfer taxes in real estate closing costs are not imposed. Unlike some other states, Arizona does not have a specific transfer tax on real estate transactions.
Who Pays Transfer Taxes in Closing Costs?
In Louisiana, the party responsible for paying transfer taxes in a real estate transaction can be negotiated between the buyer and the seller. However, it is common for the seller to pay the transfer taxes.
The transfer tax is typically considered a seller’s expense, but this can vary depending on the terms agreed upon in the purchase agreement or sales contract.
To further elaborate, our real estate investor company, JiT Home Buyers, pays all closing costs, so a seller doesn’t have to pay the transfer tax when selling their house to JiT Home Buyers.
Neither the seller nor the buyer is responsible for paying transfer taxes as part of the closing costs in Arizona.
However, it’s important to note that other closing costs, such as title insurance, recording fees, and escrow fees, may still apply.