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.
Every term like this one lights up in the step you're on.
Free to set up. No credit card.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
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