What should you expect to pay for closing costs?

11 Replies

Hello Everyone,

I'm trying to figure out what should the buyer pay for closing costs? When my wife and I purchased our home we didn't know anything about buying a home. When I heard the real estate agent say closing costs will be 6%, I negotiated that the seller pay half. I didn't know if that was a good deal, and still don't know what a buyer should expect to pay for closing. Can someone give me a better idea? 


Hi @Ricardo Camacho

Closing cost distribution should be included in your purchase contract. Typically, when I'm buying, I do not pay for any of the closing costs, except for items which are pro-rated (I pay my share and the seller pays his) and I pay half of the title company's closing fee (which in Nevada, is about $300 per purchase I make). Additionally, if you're purchasing where there is a HOA, you may have to prepay a few months of HOA fees.


4-5% is typical when buying and 9-10% is typical when selling.   All depends on contract,  financing, etc.  But when estimating deals I just use 5% for buying and 10% when selling as my rule of thumb.   If it comes in lower then great.   If you negotiated 3% closing help,  that would be pretty standard in my area. 

Here is the information from the last condo I purchased. This is pretty much the bare minimum you can pay and was a cash purchase. It is important to know that I get a good discount from the title company due to my investor status, they usually charge $300. Everything else is in line and depends on the property you are purchasing.

Price: $71,733.48

County Taxes (4/24 to 7/1): $80.58

County Sewer (4/24 to 7/1) $35.93

HOA Dues (4/24 to 7/1) $425.60

Recording Fee: $60

Title Company Fee: $136

So my total closing costs were $738.11 or 1.03% of the purchase price.

I'll try to dig up my last flip that I did in California to give you an idea of what I paid there.


With my lender in WI the closing costs are about $1000.00 per deal.  This is with no points paid at closing. 

It's basically the cost of:


Loan origination fees

Title fees

Account Closed

Awesome, thanks for breaking it down. To me it seems like you got a good deal! If you do find it and don't mind sharing, I would love the extra information.

@Johann Kleisch

What do I have to do to get a great deal on closing? I walked in totally blind when I bought my house and I'm pretty sure I payed more than that. They could've charged me for dog food and I would not have even realized it!

Here are the numbers from the CA Home. This was a REO and the bank required that I pay lender's and owner's title policy and would not negotiate that. They would also not pay the past HOA Dues (almost $8000), so I'll exclude that from this calculation. In this deal, I negotiated a 3% contribution to closing costs as well to offset some of the purchase costs.

Purchase Price: $394,000

Lenders Title Policy: $1294

Owner's Title Policy: $2618

Prepay Insurance: $776

Prorate Taxes: $3390

Government Recording: $160

Transfer Tax: $490

HOA Prepay: $275

Inspection: $330

Flood Cert: $9

Credit Check: $37

Loan Fee: $995

Interest Charge: $837

Home Warranty: $530

So my total closing costs were $11,741 or 2.98% of the purchase price. 


Are the closing cost percentages the same for single family homes as they are for multi-family? And if so, should I expect to pay 3-5%? This seems like a lot, given that my $750k purchase would have closing costs that range from $22,500 to $37500. Even if I can get the seller to cover half, this range seems a little over the top. Help?