You’ve found the house. You’ve negotiated the price. But just when you think you’re almost there—boom—closing costs enter the chat.
So, what exactly are closing costs? Simply put, they’re the final expenses you’ll pay before the keys are officially yours. And while they might feel like a surprise guest at your home buying party, they’re a normal part of the process.
On average, buyers can expect to pay between 2% and 5% of the purchase price in closing costs. That means for a $400,000 home, you might shell out $8,000 to $20,000. Ouch? Maybe. But here’s what you’re paying for: lender fees, appraisal, home inspection, transaction fees, HOA certificates, title insurance, attorney fees, and prepaid costs like property taxes and homeowners insurance. It’s a long list—but it’s all tied to protecting your investment and making the transaction legit.
Good news: some of these fees are negotiable. And in some cases, you can ask the seller to help cover them. Better news? If you’re working with us, we will walk you through every line item, so you know where every dollar is going—and why.
Don’t let closing costs catch you off guard. Let’s break them down together so your final step feels less like a mystery… and more like a celebration.
- 💰 How much?
Typically 2–5% of the purchase price.
Example: On a $400,000 home, that’s $8,000–$20,000. - 🧾 What are you paying for?
- Lender fees (loan origination, underwriting)
- Appraisal & home inspection
- Transaction fees
- HOA certificates
- Title insurance & title search
- Attorney or closing agent fees
- Prepaid costs (property taxes, homeowners insurance, interest)
- 🤝 Can you lower them?
- Some fees are negotiable
- You may be able to ask the seller to cover part of the costs
- 🔍 Why do they matter?
Yes, they protect your investment and make the sale official.
As your agent, I’ll make sure you understand every fee—so there are no surprises on closing day. Ready to talk strategy? Let’s connect!
The Paul Smith Team has expertly helped hundreds of clients successfully sell and/or buy their homes. Whether you need a Listing Specialist or Buyer’s Agent our team can help make the process smooth, predictable, and trusted every step of the way!
If you would like to receive more detailed information about buying and/or selling a home, give our team a call or send our team an email with your information with the Subject Line “Buying and/or Selling A Home” and we will be happy to help!
You can reach us at 843.606.0234 or home@thepaulsmithteam.com.