How much are closing costs for a buyer in 2026?

Buyer closing costs typically run 2-4% of the purchase price. On a $400,000 home, expect $8,000-$16,000. This includes lender fees ($2,500-$5,000), title insurance ($1,500-$3,000), prepaid taxes and insurance ($2,000-$5,000), and government recording fees ($100-$500). Your exact total depends on your state, lender, and loan type.

How much are closing costs for a seller in 2026?

Seller closing costs run 7-10% of the sale price when including agent commissions. On a $400,000 sale: listing agent commission ($10,000-$12,000), buyer's agent concession ($8,000-$10,000), title insurance ($1,000-$2,500), transfer taxes ($0-$8,000), and other fees ($500-$2,000). Total: $19,500-$34,500.

Which closing costs are negotiable?

Several closing costs are negotiable: agent commissions (always), title insurance provider (shop around, save $500-$1,500), lender fees (compare multiple lenders), home warranty ($400-$600, often seller-paid), and survey costs ($300-$600). Transfer taxes and recording fees are set by government and are not negotiable.

Can the seller pay the buyer's closing costs?

Yes. Seller concessions toward buyer closing costs are common — occurring in roughly 40-50% of transactions in 2026. Conventional loans allow up to 3-6% in seller concessions depending on down payment. FHA allows up to 6%, and VA allows up to 4%. This is a standard negotiation point, especially in buyer-friendly markets.

Are closing costs included in the mortgage?

Most closing costs cannot be rolled into a conventional mortgage. However, you can finance closing costs through: seller concessions (seller credits reduce your cash needed), lender credits (accept a higher interest rate in exchange for closing cost coverage), and on FHA loans, the upfront mortgage insurance premium (1.75%) can be rolled into the loan balance.

How Much Are Closing Costs in 2026?

April 17, 2026

Closing costs are the transaction fees paid when a real estate deal finalizes. They're separate from the home price and down payment, and they catch many buyers and sellers off guard. Here's every fee you'll encounter in 2026, who pays what, and how to reduce the total.

Buyer Closing Costs: The Full Breakdown

Buyer closing costs run 2-4% of the purchase price. On a $400,000 home, that's $8,000-$16,000 in cash needed at closing on top of your down payment.

Lender Fees

These are charges from your mortgage company for processing and underwriting the loan:

Loan origination fee: 0.5-1% of the loan amount. On a $380,000 loan (5% down on $400,000), that's $1,900-$3,800. Some lenders charge a flat fee instead.
Appraisal fee: $400-$700. The lender orders this to confirm the home's value supports the loan amount. You pay it whether or not the deal closes.
Credit report fee: $30-$75. Covers pulling your credit from all three bureaus.
Underwriting fee: $400-$900. Some lenders bundle this into the origination fee; others itemize it separately.
Flood certification: $15-$25. Confirms whether the property is in a FEMA flood zone.
Rate lock fee: $0-$500. Some lenders charge for locking your interest rate, especially for longer lock periods (60+ days).

Total lender fees: $2,745-$6,000

Title and Legal Fees

Title search: $200-$400. The title company researches the property's ownership history to confirm clear title.
Lender's title insurance: $500-$1,500. Protects the lender if a title defect is discovered after closing. Required by all lenders.
Owner's title insurance: $1,000-$2,500. Protects you as the buyer. Optional but strongly recommended. In some states, the seller pays this — check local custom.
Attorney/settlement fee: $500-$1,500. Required in some states (Connecticut, Georgia, Massachusetts, New York, etc.). In other states, a title company handles closing.
Recording fees: $100-$500. Government fees to record the deed and mortgage in public records.

Total title and legal fees: $2,300-$6,400

Prepaid Items and Escrow

These aren't fees — they're advance payments for recurring costs that your lender requires at closing:

Prepaid property taxes: $800-$4,000. Typically 2-6 months of property taxes deposited into your escrow account.
Prepaid homeowner's insurance: $1,200-$4,000. Your first year's premium, paid in full at closing.
Prepaid interest: $300-$1,500. Daily interest from your closing date to the end of that month. Closing at the end of the month minimizes this.
Escrow reserve: $500-$2,000. A two-month cushion in your escrow account for taxes and insurance.

Total prepaids: $2,800-$11,500

Other Buyer Costs

Home inspection: $350-$600 (paid before closing, not at the closing table)
Survey: $300-$600. Required by some lenders to confirm property boundaries.
HOA transfer fee: $100-$500. If the property is in an HOA, there's usually a transfer and document fee.
Buyer's agent commission: $8,000-$12,000 (2-3% on $400,000). May be covered by seller concession — negotiate this in your offer.

Seller Closing Costs: The Full Breakdown

Seller closing costs are larger than buyer costs, primarily because of agent commissions. On a $400,000 sale, sellers pay $19,500-$34,500 (roughly 5-9% of the sale price).

Agent Commissions

Listing agent commission: $10,000-$12,000 (2.5-3% of sale price)
Buyer's agent concession: $8,000-$10,000 (2-2.5% of sale price, if offered). In 2026, approximately 60-70% of sellers still offer this to attract represented buyers.

Total commissions: $18,000-$22,000

Title and Transfer Costs

Owner's title insurance policy: $1,000-$2,500. In many states, the seller customarily pays for the buyer's owner's title policy.
Transfer taxes/stamps: $0-$8,000. Varies dramatically by state. Some states (Texas, Missouri) charge minimal transfer taxes. Others (New York, Pennsylvania) charge 1-2%+ of the sale price.
Attorney fees: $500-$1,500 (if required in your state).

Other Seller Costs

Mortgage payoff and recording: $100-$500 in fees beyond your loan balance
Prorated property taxes: You owe taxes from the start of the tax period through closing day
Home warranty for buyer: $400-$600 (optional, often included as a negotiation sweetener)
Repair credits: $0-$15,000+ depending on inspection negotiation results

How to Reduce Closing Costs

For Buyers

Compare lender fees. Get Loan Estimates from at least three lenders. Origination fees, underwriting fees, and rate lock fees vary significantly. A difference of $1,000-$3,000 is common between lenders.
Shop for title insurance. In most states, you can choose your own title company. Rates vary by $500-$1,500 for the same coverage. Ask your buyer's agent for recommendations.
Negotiate seller concessions. Ask the seller to contribute $5,000-$15,000 toward your closing costs. This is especially effective in buyer-friendly markets with higher inventory.
Accept lender credits. Some lenders offer credits toward closing costs in exchange for a slightly higher interest rate (0.125-0.25%). On a $380,000 loan, this might save $3,000-$5,000 at closing but cost you $20-$40 more per month.
Close at the end of the month. This minimizes prepaid interest — closing on the 28th versus the 5th can save $500-$1,200.
Ask about first-time buyer programs. Many state housing finance agencies offer closing cost assistance grants of $2,000-$10,000 for qualifying buyers.

For Sellers

Negotiate agent commissions. Interview multiple agents and compare rates. On a $400,000 home, reducing total commission by 0.5% saves you $2,000.
Offer concessions strategically. Instead of automatically offering 2.5% buyer's agent compensation, offer 2% and let the buyer negotiate up. This can save $2,000 on a $400,000 sale.
Challenge your property tax assessment. If your assessed value is above market value, appeal before listing. A lower assessment means lower prorated taxes at closing and more attractive tax numbers for buyers.
Shop for title services. If local custom dictates that you pay for the owner's title policy, get quotes from multiple title companies.

Closing Cost Comparison by State

Closing costs vary significantly by state due to transfer taxes, attorney requirements, and local customs. Some examples on a $400,000 sale:

Texas: Low transfer taxes but high property taxes. Buyer closing costs: $8,000-$12,000.
New York: High transfer taxes (0.4% state + city taxes in NYC). Buyer closing costs: $15,000-$25,000.
Florida: Documentary stamp tax (0.7%) and required title insurance. Buyer closing costs: $10,000-$16,000.
California: Moderate transfer taxes, no attorney requirement. Buyer closing costs: $9,000-$14,000.
Missouri/Indiana: Low transfer taxes, lower cost of living. Buyer closing costs: $6,000-$10,000.

The best way to get an accurate estimate of your closing costs is to request a Loan Estimate from your lender early in the process. This standardized document itemizes every fee and is required within three business days of your loan application.

Need help navigating closing costs? Find an experienced agent on The Realtor Rankings who can guide you through every line item and negotiate on your behalf.

Frequently Asked Questions

How much are closing costs for a buyer in 2026?: Buyer closing costs typically run 2-4% of the purchase price. On a $400,000 home, expect $8,000-$16,000. This includes lender fees ($2,500-$5,000), title insurance ($1,500-$3,000), prepaid taxes and insurance ($2,000-$5,000), and government recording fees ($100-$500). Your exact total depends on your state, lender, and loan type.
How much are closing costs for a seller in 2026?: Seller closing costs run 7-10% of the sale price when including agent commissions. On a $400,000 sale: listing agent commission ($10,000-$12,000), buyer's agent concession ($8,000-$10,000), title insurance ($1,000-$2,500), transfer taxes ($0-$8,000), and other fees ($500-$2,000). Total: $19,500-$34,500.
Which closing costs are negotiable?: Several closing costs are negotiable: agent commissions (always), title insurance provider (shop around, save $500-$1,500), lender fees (compare multiple lenders), home warranty ($400-$600, often seller-paid), and survey costs ($300-$600). Transfer taxes and recording fees are set by government and are not negotiable.
Can the seller pay the buyer's closing costs?: Yes. Seller concessions toward buyer closing costs are common — occurring in roughly 40-50% of transactions in 2026. Conventional loans allow up to 3-6% in seller concessions depending on down payment. FHA allows up to 6%, and VA allows up to 4%. This is a standard negotiation point, especially in buyer-friendly markets.
Are closing costs included in the mortgage?: Most closing costs cannot be rolled into a conventional mortgage. However, you can finance closing costs through: seller concessions (seller credits reduce your cash needed), lender credits (accept a higher interest rate in exchange for closing cost coverage), and on FHA loans, the upfront mortgage insurance premium (1.75%) can be rolled into the loan balance.