How Much Are Closing Costs? (2026)
Buyers typically pay 2% to 5% of the home’s price in closing costs, while sellers usually pay more, often 6% to 10% once agent commissions are included. Closing costs are the fees due at the finish line of a home purchase, on top of your down payment. They surprise a lot of first-time buyers, so it pays to budget for them early.
What buyers pay
On a $300,000 home, expect roughly $6,000 to $15,000 in closing costs. Common line items:
| Closing cost | Typical amount |
|---|---|
| Loan origination fee | 0.5%–1% of the loan |
| Appraisal | $400–$700 |
| Home inspection | $300–$500 |
| Title insurance & search | $1,000–$2,500 |
| Escrow / settlement fees | $500–$1,500 |
| Prepaid property taxes & insurance | Varies |
| Recording & transfer fees | Varies by state |
A big chunk is prepaids, money set aside up front to fund your escrow account for the first year of property taxes and homeowners insurance.
What sellers pay
Sellers generally have the higher closing costs because they usually pay the real estate agent commissions (often 5% to 6% of the sale price, split between the agent), plus transfer taxes and any agreed-upon concessions. Our home sale calculator estimates a seller’s net proceeds after these costs.
Closing costs vary by state
Where you buy matters. States with transfer taxes and higher title or attorney fees (parts of the Northeast, for example) tend to have higher closing costs, while others are lower. Your Loan Estimate, which the lender must provide within three days of your application, gives you the specific numbers.
How to lower your closing costs
- Shop lenders. Origination and lender fees vary, compare Loan Estimates from two or three lenders.
- Negotiate seller concessions. In a buyer’s market, sellers may agree to cover part of your closing costs.
- Ask about lender credits. A slightly higher rate can come with credits that reduce upfront costs (a trade-off worth doing the math on).
- Close near month-end to reduce the prepaid daily interest portion.
Bottom line
- Buyers: budget 2% to 5% of the price for closing costs, on top of the down payment.
- Sellers: typically 6% to 10%, mostly agent commissions.
- Your Loan Estimate gives you the exact figures, and shopping lenders or negotiating concessions can trim them.
Add closing costs to your plan with our mortgage calculator, and see seller-side numbers in the home sale calculator. This article is general information, not financial advice.
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Rakesh Choudhary, PhD · Founder & Editor
Rakesh Choudhary, PhD, is the founder of Calcinum. A sociologist by training, he builds every calculator on the site and maintains its 2026 federal and state tax data, sourced from primary references (IRS, SSA, state revenue departments, DFAS) and re-verified whenever the law changes. Tax data is sourced from primary references (IRS, state revenue departments, SSA, DFAS) and re-verified annually each tax year.
Editorial standards: Every article cites primary sources and is reviewed against current tax-law data before publication. See our full methodology & accuracy for sourcing and review process.
Not financial advice: This article is for general informational purposes only. Calcinum does not provide regulated tax, legal, or investment advice. Consult a qualified professional for decisions specific to your situation.