Closing costs for buyers average 2%–5% of the purchase price — on the $420,000 national median home, that’s $8,400 to $21,000 in addition to your down payment. Costs vary significantly by state due to transfer taxes, recording fees, and local practices.
Average Closing Costs by State (Buyer Costs)
| State | Avg Closing Cost (% of price) | On $420K Home |
|---|---|---|
| New York | 3.5%–6.0% | $14,700–$25,200 |
| New Jersey | 3.0%–5.0% | $12,600–$21,000 |
| Connecticut | 2.5%–4.5% | $10,500–$18,900 |
| Hawaii | 2.5%–4.0% | $10,500–$16,800 |
| Pennsylvania | 2.5%–4.0% | $10,500–$16,800 |
| Delaware | 2.5%–4.0% | $10,500–$16,800 |
| Maryland | 2.5%–3.5% | $10,500–$14,700 |
| Washington | 2.0%–3.5% | $8,400–$14,700 |
| California | 2.0%–3.0% | $8,400–$12,600 |
| Florida | 2.0%–3.0% | $8,400–$12,600 |
| Texas | 2.0%–3.0% | $8,400–$12,600 |
| Illinois | 2.0%–3.0% | $8,400–$12,600 |
| Colorado | 1.5%–3.0% | $6,300–$12,600 |
| Georgia | 1.5%–2.5% | $6,300–$10,500 |
| Ohio | 1.5%–2.5% | $6,300–$10,500 |
| North Carolina | 1.5%–2.5% | $6,300–$10,500 |
| Virginia | 1.5%–2.5% | $6,300–$10,500 |
| Arizona | 1.5%–2.5% | $6,300–$10,500 |
| Tennessee | 1.5%–2.0% | $6,300–$8,400 |
| Missouri | 1.0%–2.0% | $4,200–$8,400 |
| Indiana | 1.0%–2.0% | $4,200–$8,400 |
| Montana | 1.0%–1.5% | $4,200–$6,300 |
| Wyoming | 1.0%–1.5% | $4,200–$6,300 |
Ranges reflect variation in lender fees, title insurance costs, and whether transfer taxes apply.
What Buyer Closing Costs Include
| Cost Item | Typical Amount | Notes |
|---|---|---|
| Loan origination fee | 0.5%–1% of loan | Lender’s fee for processing |
| Appraisal | $500–$800 | Lender-ordered home valuation |
| Credit report | $25–$50 | |
| Title search | $200–$500 | Verifies clear ownership |
| Title insurance (lender’s) | $400–$800 | Protects lender; required |
| Title insurance (owner’s) | $500–$1,500 | Protects buyer; recommended |
| Survey | $400–$700 | Not always required |
| Home inspection | $300–$600 | Paid before closing, not at close |
| Prepaid interest | 7–30 days of daily interest | Interest from closing to first payment |
| Homeowner’s insurance (1 year) | $1,200–$3,500 | Paid at close |
| Property tax escrow (2–3 months) | Varies by location | |
| Recording fees | $50–$250 | County charges to record the deed |
| Transfer taxes (buyer portion) | 0%–2% of price | States like NY, MD, DC charge buyers |
What Seller Closing Costs Include
| Cost Item | Typical Amount |
|---|---|
| Listing agent commission | 2%–3% of sale price |
| Buyer agent compensation (if offered) | 2%–2.5% of sale price |
| Transfer taxes (seller portion) | Varies by state |
| Title insurance | Sometimes seller-paid depending on state custom |
| Attorney fees | $500–$1,500 in attorney states |
| HOA transfer fees | $200–$500 |
| Recording fees | $50–$250 |
| Prorated property taxes | Depends on closing date |
| Total seller costs | 5%–9% of sale price |
States with Transfer Taxes (Major Cost Factor)
Transfer taxes are the biggest swing factor in closing costs by state:
| State | Transfer Tax Rate | On $420K Home |
|---|---|---|
| New York City | ~1.4%–2.075% (buyer) + 0.4% (seller) | ~$7,600–$10,400 |
| New Jersey | 1%–1.5% (seller) | $4,200–$6,300 |
| Pennsylvania | 1% state + local (buyer + seller) | $4,200–$8,400 total |
| Delaware | 2% + 1.5% county (split buyer/seller) | $7,350 total |
| Maryland | 0.5%–1.5% (varies by county) | $2,100–$6,300 |
| Connecticut | 0.75%–1.25% (seller) | $3,150–$5,250 |
| Florida | 0.7% doc stamp (seller) | ~$2,940 |
| Texas | None | $0 |
| California | 0.11% state (seller); local varies | $462+ |
| Indiana | None | $0 |
How to Reduce Closing Costs
- Negotiate seller credits — ask the seller to cover some of your closing costs in exchange for a slightly higher purchase price (this rolls the cost into the mortgage)
- Shop lenders — origination fees and lender charges vary widely; get Loan Estimates from 3+ lenders
- Use a no-closing-cost mortgage — lender covers fees in exchange for a higher rate (works if you’ll sell/refinance within 5–7 years)
- Ask about first-time buyer programs — many states offer closing cost assistance grants
- Close at end of month — minimizes prepaid interest days
Closing costs are typically 2–5% of the loan amount and come on top of the down payment — see down payment guide for the total upfront cash requirement. For a comparison by state, similar data is also available at closing costs by state. The full breakdown of every cost in a home purchase is at costs of buying a home.
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