How much are closing costs on a house?
Ashburn, VA

How much are closing costs on a house?

Ashburn, VA

How much are closing costs on a house?

$6,000 – $18,000 average closing costs
2% – 6%of the home sale price

Get free estimates for your project or view our cost guide below:

$6,000 – $18,000 average closing costs

2% – 6% of the home sale price


Get free estimates for your project or view our cost guide below:
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Tamatha Hazen
Written by
Tamatha Hazen
Edited by
Tara Farmer
Fact-checked by
Kristen Cramer

Average house closing costs

The closing costs on a house are $6,000 to $18,000 on average, depending on the home purchase price and down payment. House closing costs are 2% to 6% of the sale price, with final costs based on the loan type, location, and the purchase agreement negotiated between the buyers and sellers.

Average house closing costs - Chart
Average house closing costs - Chart
Average house closing costs
Home sale price Average closing costs*
$150,000 $3,000 – $9,000
$250,000 $5,000 – $15,000
$300,000 $6,000 – $18,000
$450,000 $9,000 – $27,000
$500,000 $10,000 – $30,000

*Including taxes

Get free estimates from real estate agents near you.

What are closing costs?

Closing costs are expenses, beyond the property price, that both buyers and sellers pay during a real estate transaction. These fees include loan origination, appraisal, title searches, insurance, taxes, and recording charges.

For buyers, these fees primarily include costs associated with getting a mortgage, and charges for things like home inspections, HOA transfers, and fees related to your chosen mortgage program. For sellers, the fees include real estate commissions, taxes, and document processing costs.

House closing cost calculator
Mortgage closing costs Average cost* Typically paid by
Loan origination fee $1,500 – $5,000
(0.5% – 1.0% of the loan amount)
Buyer
Underwriting fee $300 – $900 Buyer
Home appraisal cost $350 – $600 Buyer
Homeowners insurance cost $50 per month for every $100,000 in home value Buyer
Discount points 1% of the total loan amount per discount point Buyer
Flood certification $25 – $50 Buyer
Lead-based paint inspection cost $300 – $700 Buyer
Pest inspection cost $50 – $200 Buyer
Private mortgage insurance (PMI) $30 – $700 per month for every $100,000 borrowed Buyer
Rate lock fee 0.25% – 0.50% Buyer
Title insurance $2,500 – $5,000
(0.5% – 1.0% of the sale price)
Varies by location
(Buyer typically)
Property survey cost $200 – $700 Buyer or seller
Escrow (settlement) fees $350 – $1,000 Split
Prorated property taxes Varies Split
Transfer taxes Varies Seller or split
Realtor commissions 5% – 6% of sale price Seller
Title search $100 – $500 Varies by location
(Seller typically)
Recording fees $125 – $200 Varies by location
Attorney fees $500 – $1,000+ Varies by location

*Fees vary depending on the sales agreement.

Buyer’s closing costs

The house closing costs for buyers are fees typically associated with getting a mortgage loan. The fees include credit checks and insurance coverage that protect the lenders from default loans, as well as home inspections to ensure the home is worth the amount they are lending.

The common closing costs for buyers include:

  • Loan origination fee: Administrative fees charged by the lender for processing the mortgage application, which may include an application fee, credit check, and underwriting fees

  • Underwriting fee: Cost of analyzing your credit history, employment, income, debt, and other factors to assess your ability to repay the loan

  • Home appraisal fee: Conducted by a licensed professional to determine the home's value for the lender

  • Property survey: Used to verify property boundaries, title ownership, and check for zoning violations

  • Title insurance: Protects the buyer from ownership claim issues such as liens, deeds, or other claims

  • Homeowners insurance: Prorated cost of homeowners insurance from the closing date to the end of the policy period

  • Private mortgage insurance (PMI): Required by the lender if you put down less than 20% at closing on a conventional loan to protect the lender if you default

  • Flood certification: Verifies the flood zone status of the property

  • Lead-based paint inspection: Tests for harmful lead in homes built before 1978

  • Pest inspection: Inspects for termites, dry rot, or similar damage

  • Discount points: Prepaid interest to reduce the interest rate by 0.125% to 0.25% per point paid

  • Rate lock fee: Fee a lender charges to lock in a mortgage interest rate for a certain period

Seller’s closing costs

The home closing costs for sellers cover realtor services, taxes, and other administrative services provided during the real estate sale.

The greatest cost of selling a home is usually for realtor commissions. Most real estate sales include 3% commission for the seller's agent and another 2% to 3% for the buyer’s agent. The seller’s commission includes payment for marketing and showing the home. Most realtors reduce their commissions to represent both the buyer and seller in the transaction.

In addition to realtor commissions, other seller closing costs include:

  • Title search: Public records search to confirm the property’s legal ownership

  • Transfer taxes: Tax levied on the sale of real estate

  • Recording fee: Fees–typically charged by the county–for government recording of property transfer

  • Attorney fees: Fee for legal representation during closing

  • Mortgage payoff: The payment to satisfy the terms of your mortgage loan and completely pay off your loan

Shared closing costs

Home buyers and sellers both incur some shared closing costs, with certain fees split between them depending on the closing date. These fees can include:

  • Escrow fees: Both buyers and sellers split the fees to cover paperwork and distribution of funds to third parties involved in a real estate transaction.

  • Property taxes: The seller pays for the portion of property taxes up to the closing date and the buyer pays for the remainder of the year after closing.

  • HOA fees: The seller pays for the portion of neighborhood HOA fees up to the closing date and the buyer pays a prorated fee to cover the remainder of the year after closing.

A happy couple with keys to their new home after closing
A happy couple with keys to their new home after closing

Home closing cost factors

Several factors can influence the closing costs when buying or selling real estate, including:

  • Loan type: Different loan programs have varying associated fees, depending on whether using an FHA, VA, or conventional mortgage.

  • Location: Closing costs can vary significantly between states and even counties due to differing taxes and regulations.

  • Property value: Higher-priced properties generally incur higher closing costs due to a larger loan amount and potentially higher fees based on value.

  • Closing date: Depending on the closing date, you might be responsible for a portion of the year's property taxes. Also, closing earlier or later in the month will affect any pro-rated HOA fees or prepaid interest charges.

  • Seller concessions: In some cases, sellers may agree to cover certain closing costs as part of the negotiation, especially in a buyer’s market or with a highly motivated seller.

How to save on closing costs

While you can’t avoid closing costs entirely, there are some strategies you can use to save money:

  • For sale by owner: Reduce your commission costs by selling the home yourself. By taking on the marketing, negotiating, and paperwork you can reduce or eliminate agent commissions.

  • Research and compare: Get quotes from multiple lenders and compare their closing cost estimates, then leverage these during negotiations.

  • Negotiate fees: Some fees may be more flexible than others. Negotiate with your lender to lower or waive certain fees to secure your business.

  • Ask about discounts: Inquire about discounts or promotions your lender may offer for military service, automatic payments, or having multiple accounts with them.

  • Ask sellers to contribute: Some sellers may be willing to contribute to closing costs as part of the home purchase agreement, especially in a buyers’ market.

  • Look for assistance programs: Research local and state programs that help with closing costs in the form of grants or low-interest loans, especially if you are a first-time homebuyer.

  • Pick your service providers: You usually have the flexibility to choose service providers for certain aspects of the closing process, such as title insurance and home inspection. Shop around and compare prices to potentially save on these services.

FAQs about house closing costs

Who pays closing costs when selling a house?

In a real estate transaction, both the buyer and seller are responsible for certain closing costs, but the seller typically pays the real estate agent commissions, which can be costly. The buyer and seller negotiate the specific breakdown of closing costs in the purchase agreement.

Are house closing costs deductible?

In most cases, house closing costs are not directly deductible from your taxes. However, there are some exceptions, including:

  • You may be able to deduct discount points paid and some loan origination fees in the year you pay them, under certain conditions.

  • You can deduct prepaid mortgage interest in the year you pay it.

  • You can sometimes deduct premiums for PMI or FHA mortgage insurance, depending on your income and specific situation.

How do I calculate closing costs on a house?

Generally, closing costs average 2% to 6% of the purchase price. Many lenders, real estate websites, and financial institutions offer online cost calculators to provide an estimated range for your closing costs. These calculators typically ask for details like your loan amount, location, and property value.

How do I avoid closing costs when selling a house?

Get free estimates from real estate agents near you.

You can minimize the amount you pay by selling the home yourself to avoid costly realtor fees or negotiating lower real estate commissions. Also, selling to a cash buyer that doesn’t require financing will eliminate certain closing costs associated with traditional mortgages.

Questions to ask a real estate agent

Ask these important questions when discussing closing costs with your real estate agent or financial institution during a home buying or selling transaction:

  • What are the standard closing costs in this area?

  • Can you provide a detailed breakdown of the estimated closing costs?

  • Which closing costs does the buyer pay, and which does the seller cover?

  • Are there any local or state programs to help with closing costs?

  • Can you recommend lenders or title companies known for competitive rates?

  • Are there negotiable closing costs?

  • What strategies can help minimize closing costs?

  • Is seller assistance common in today’s real estate market?

  • Can you recommend service providers with transparent fee structures?

  • What are the key dates and deadlines related to closing costs?

  • Are there any unforeseen costs I should be prepared for?