Closing Costs for Buyers


Unfortunately, the purchase price of your home is not the only cost you will incur in buying a home. Below is a list of typical costs Buyers incur in buying a home in our area. If, however, you don’t have enough saved to cover all costs, do no fret!  It is often possible to ask the Seller to cover a portion of these costs (“Seller assist”).

When buying a home, buyers typically pay:

Pest Inspection:  approximately $65  (paid at time of inspection)

Radon Inspection:  approximately $135 (usually paid at time of inspection)

Mold Inspection: approximately $150 – $225 (usually paid at time of inspection)

General Home Inspection: approximately $300 – $500 (usually paid at time of inspection)

Transfer Taxes:  1% of Purchase Price in most areas

Lender Fees: These vary wildly from lender to lender and include such things as Application fee ($350 approx), Underwriting Fee, Administration Fee, Escrow Waiver Fee, Commitment Fee, Loan Packaging Fee, etc. This can amount to thousands of dollars in fees. It is essential that you get quotes from several lenders so that you know what all the “hidden” charges are– fees are negotiable.

Broker Fee: Buyers pay a $325 Broker Fee at closing. The remainder of the commission is normally paid by the seller.

Title Insurance: Less than 1% of the Purchase Price (approximately .006 – .008)

Title Endorsements: approximately $150

Settlement Fee: approximately  $195

Recording Fees: To record the deed, Mortgage(s) and Assignment(s)– approximately $150 per document recorded.

Notary Fee: approximately $20

Property Taxes: Will be pro-rated between buyer and seller as of the closing date. You will pay for the days you will own the property during the year. If the seller has already paid the taxes, you will reimburse the seller for your share. If you will be paying the taxes at or after the closing, the seller will pay you their share based on the number of days that they have owned the home. The closing company makes these calculations.

Survey: To have a new survey prepared of the property. approximately $250 – $400

Overnight Fees: The fee for overnight postal servicing of documents if you are not attending the closing — approximately $30 – $50

Flood Certification: approximately $22

Home Warranty:  available for you to purchase at closing if not provided by seller — base price $475

In addition to these costs, you should also expect to pay:

  • Interest on your loan for any “partial” month period (i.e., from the date of purchase to the end of the month you close in).
  • Your first year’s homeowner’s insurance premium. This amount will vary depending on the price of your home and the type of coverage you select.
  • An amount to establish a reserve for property taxes and insurance that will be paid in the future. Unless you choose to “self-escrow” (this option is only available if you have at least 20% equity in your home), your lender will set up an escrow account from which it will make these payments – this will start with the establishment of a reserve at your closing. The closing company will calculate the amounts needed for these reserves.
  • Occupancy Fee – may be required by the municipality your new home is in – approximately $20.

These are estimates only and may be higher or lower depending on the purchase price of your new home, the service providers involved in the transaction and the municipality your property is located in. They are provided simply to allow for an estimate of buyer costs. Consult your real estate professional and/or mortgage broker for a more accurate estimate.

I’m ready to answer any questions you have regarding your real estate needs.
Kathe Barge, CRS, ABR, CNE
Associate Broker
401 Broad Street
Sewickley, PA 15143
Cell: 412-779-6060
Office: 412-741-2200 x238