Re-examining Closing Costs

• August 16th 2010

by UrbanTurf Staff

The Washington Business Journal reported today that closing costs in DC and Maryland are well below the national average. Given this news, it seemed like a good time to re-examine what is actually included in these costs that remain a mystery to many homebuyers.

Closing costs are essentially fees paid at the settlement table of a home buying transaction. The fees usually include taxes, lender and financing costs as well as attorney and other administrative fees. Closing costs generally range between 2 and 7 percent of the property value, and you must pay these costs before moving into your new home.

Below are a range of typical fees for the DC area, which vary depending on the cost of the home.

Note: Closing costs are not negotiable, but in a home buying transaction, a seller may give a credit to the buyer for closing costs at the settlement table, so that the buyer can wrap their closing costs into their mortgage.

• DC Transfer Tax (1.45 percent of sales price or 1.1 percent of sales price under $400K)
• Settlement Fee ($100-$500)
• Release Preparation Fee ($75-$150)
• Release Recording Fee ($50-$75 per lien)
• Messenger Fees ($50-$100)
• Lender Application Fee ($295)
• Title Search ($200)
• Title Insurance ($1,000-$5,000 depending on the price of the home)
• Appraisal Fees ($300)
• Inspection ($385)
• Survey Fee ($250)
• Credit Report Fee ($55)
• Deferred Transportation Related Facilities Charges ($300-$500)
• Well or Septic Certification Fees ($200-$500)
• Home Buyer’s Warranty ($300-$600)

This article originally published at https://dc.urbanturf.com/articles/blog/reexamining_closing_costs/2382.