Rhode Island Real Estate Closing Costs Statistics (2024 Survey)

Keep in mind that realtor commissions are always negotiable. There is no set amount or percentage for these commissions.

Some offices have a standard, and they may not be willing to negotiate, but as a whole, commissions are absolutely negotiable.

However, discounts, brokers, or agents are not always the best choice. You really do get what you pay for.

Some other closing costs are really non-negotiable. Transfer taxes and real estate tax (to buyer) are typically non-negotiable.

The seller may also find savings by shopping around for closing real estate attorneys in Rhode Island. But as I said before, the cheapest option isn’t always the best option.

— Jesse Andrews, Anchored Oak Realty, Broker Owner

Technically a seller could avoid that. For instance, in an off-market cash offer, a lot of times we will position ourselves to provide a net offer to the seller.

We take into consideration closing costs, real estate attorney fees, transfer, taxes, and anything else that might be relevant in this scenario. That could essentially be a sale with no closing costs.

On the more traditional side of sales, it is possible to sell with a Rhode Island real estate agent with no costs. The buyers would be responsible for paying their own agent’s commission.

The seller may also structure the sale so that the buyer would be responsible for seller-side closing costs.

While this is possible, it makes the sale more difficult for the buyer, and often seems less attractive to any potential buyers.

— Jesse Andrews, Anchored Oak Realty, Broker Owner

This is something that a realtor should identify before the house is even listed. A good agent will sit down with the sellers and make them aware of the expenses involved.

If there is no equity in the property for sale and the seller has no means to pay these fees, the sale becomes tricky.

Think about it like this: Would a buyer overpay for the property to help pay for seller closing cost?

It’s possible, but that really depends on a bunch of factors. However, even though it’s technically plausible, it’s unlikely.

— Jesse Andrews, Anchored Oak Realty, Broker Owner

The best way for a buyer to save on closing costs would be to purchase a property that has seller-side commissions.

Shopping around for an attorney and insurance provider could save you money. But once again, I always warn that cheap does not mean better.

— Jesse Andrews, Anchored Oak Realty, Broker Owner

The buyer can pay in cash, or negotiate that the seller pay all of the closing costs.

— Laurie Fletcher, Residential Properties Ltd, Sales Associate

Buyer may ask the seller for closing cost credit.

— Bill Bryson, Norcom Mortgage, Senior Loan Originator

I just closed on a property today. I represented the buyer, and our offer included a 5% credit that the buyer was able to offset closing costs and buy down on interest rate reduction.

The commission was offered by the selling agent, so my clients did not have to pay any of that expense.

— Jesse Andrews, Anchored Oak Realty, Broker Owner

Just as previously mentioned, yes, it is possible. Providing a strong offer with a seller credit will help offset a lot of these costs.

There are certain things that a buyer is responsible for before closing even comes. Credit check fee, inspections, and prepaid insurance are a few of these expenses.

Since those are paid before closing, it’s usually not applicable. However, these aren’t technically considered closing costs because it’s not on the ALTA at closing.

— Jesse Andrews, Anchored Oak Realty, Broker Owner

This varies from state to state and lender to lender.

There are some housing assistance programs that offer closing cost assistance to first-time homebuyers or other niche demographics.

There may also be some closing cost assistance if the buyer is a veteran, or if the property is to be used for agricultural purposes.

This is not the kind of program that’s available nationwide, so it’s up to an agent to educate their buyer.

— Jesse Andrews, Anchored Oak Realty, Broker Owner

Yes, through grants and down-payment assistance programs.

— Bill Bryson, Norcom Mortgage, Senior Loan Originator

There are a lot of different aspects that go into this answer.

For a seller selling traditionally with an agent, the closing costs consist of attorney fees, transfer taxes, and realtor commissions.

For a seller selling traditionally without an agent, closing costs include transfer, taxes, attorney, fees, etc.

In my experience, an owner selling FSBO will mostly save on commissions. I have seen a majority of FSBO sellers paying buyer-side commissions to help bring in buyers.

In rare circumstances, a true off-market sale may happen. The problem is a majority of homeowners don’t understand all the intricacies involved with selling a home.

Regarding buyer closing cost, if it is a traditional sale with an agent, that buyer may or may not have to pay commissions to their agent.

This is dependent upon the agreement the buyer and agent made beforehand. This would be outlined in the buyer representation contract.

As a buyer in a cash sale, my offer usually involves paying for the seller’s closing costs. Attorney fee, transfer, taxes, etc. This isn’t typical across-the-board, but many do offer this kind of service.

As a buyer in a cash sale with an agent, that’s going to fall in a more “traditional” sale. Normal closing costs would be seen in this instance.

— Jesse Andrews, Anchored Oak Realty, Broker Owner

Government regulations of banks and lenders in Rhode Island increase the cost of originating a mortgage and get passed on to borrowers.

— Laurie Fletcher, Residential Properties Ltd, Sales Associate