Palmer Harned, Realtor®
Palmer Harned
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Closing Costs

Closings costs are fees paid at settlement, some by the buyer and some by the seller, to cover a wide array of services associated with the transaction. For buyers, this means cash you must bring to closing in addition to your down payment, and for sellers, this means money that will be taken out of the proceeds of your sale. As a very general rule of thumb, you can expect to pay around 2-4% of the sales price in closing costs. These costs are noted as settlement charges on the HUD-1 statement, but below is a breakdown of the most common closing costs:

Seller Side:

○      Remaining mortgage payoff

○      Commision

○      Transportation tax

○      Grantors tax

○      Title company fee

○      Deed preparation fee

○      Deed release fee

○      HOA resale package

○      Unpaid property taxes or HOA dues (prorated)

Buyer side:

○      Origination fees (determined by lender)

○      Interest (prorated from the day of closing thru the end of the month)

○      Homeowners insurance (1 year)

○      Transfer taxes

○      Title insurance

○      Appraisal fee

○      Recordation fee

○      HOA transfer fee

○      Credit report

○      Flood insurance

○      Prepaid property taxes or HOA dues (prorated)

○      Note: The lender will also collect a reserve of a few months of insurance and taxes up front to be put into an escrow account

Either Side:

○      Home warranty

○      Termite inspection

○      L&F admin fee

If you have any questions about the costs or explanations for each of these items, feel free to contact me at


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