Closing Costs 101: What Buyers and Sellers Should Expect

Buying or selling a home involves more than just the purchase price. One key part of the process is closing costs — the fees and expenses due at the closing table.

What Are Closing Costs?
Closing costs cover services that finalize the transaction, such as:

• Loan origination fees

• Appraisal and inspection fees

• Title search and insurance

• Attorney or settlement fees

• Taxes and recording fees

How Much Are They?
Typically, closing costs range from 2% to 5% of the home’s purchase price.

Who Pays?

• Buyers usually cover most loan-related fees.

• Sellers often pay agent commissions and sometimes contribute toward buyer closing costs as part of negotiations.

💡 Pro Tip: Always ask your lender or agent for an estimate early on so there are no surprises on closing day.