Are you trying to figure out how much cash you’ll need to close on a home in Raleigh or what you’ll net when you sell? You’re not alone. Closing costs can feel confusing because they include many small fees from different sources. The good news is that most expenses are predictable once you know what to expect. In this guide, you’ll learn what closing costs cover, who typically pays in North Carolina, what’s common in Wake County, and how to estimate your total so you can plan with confidence. Let’s dive in.
What closing costs include
Closing costs are the third-party fees, taxes, prepaid items, and lender charges required to complete a purchase or sale. They are separate from a buyer’s down payment and separate from a seller’s mortgage payoff.
For buyers, this includes things like lender fees, appraisal, title services, and prepaid items for taxes and insurance. For sellers, the largest single cost is brokerage commission, plus items like deed preparation, title premiums if applicable, prorated taxes, and any agreed credits to the buyer.
Who pays what in North Carolina
Many line items follow local custom, but almost everything is negotiable in your contract. Loan type and lender rules also matter. In the Triangle, buyers typically pay lender-related charges, inspections, the appraisal, and the lender’s title insurance policy if they are financing. In many North Carolina transactions, the seller often pays for the owner’s title insurance policy, but this can vary by contract.
North Carolina commonly uses closing attorneys to handle settlement, prepare documents, and record deeds. Confirm early who will serve as your settlement agent, since your lender will need to work with that approved attorney or title company.
Typical totals in Raleigh and Wake County
While every deal is different, these rules of thumb can help you budget:
- Buyers: plan for about 2% to 5% of the purchase price in closing costs, not including the down payment.
- Sellers: the total cost often runs about 6% to 9% of the sale price, with the commission commonly 5% to 6% as the largest line item. Additional seller costs typically add 1% to 3% before paying off any mortgage.
Illustrative examples to show how this plays out:
- Example A: $350,000 home
- Buyer closing costs: about 2.5% = ~$8,750
- Seller costs: about 6.5% (including 5.5% commission) = ~$22,750
- Example B: $500,000 home
- Buyer closing costs: about 2.5% = ~$12,500
- Seller costs: about 6.5% = ~$32,500
- Example C: $800,000 home
- Buyer closing costs: about 2% to 3% = ~$16,000 to ~$24,000
- Seller costs: about 6% to 7% = ~$48,000 to ~$56,000
These figures are directional. Your actual costs will depend on loan details, escrow requirements, county fees, and any negotiated concessions.
Buyer costs: line by line
Here are common buyer closing costs and typical Triangle ranges. Your lender and closing attorney will provide exact numbers.
- Lender origination or application fee: buyer pays if financing; often 0% to 1% of the loan amount or a flat fee around $300 to $2,000.
- Appraisal: buyer pays; typically $400 to $700.
- Credit report: buyer pays; often $30 to $70.
- Title search and lender’s title insurance: buyer usually pays if there is a mortgage; amount varies by loan size.
- Owner’s title insurance: optional for buyers; in many NC deals the seller pays this premium, but confirm in your contract.
- Recording fees: buyers often pay mortgage recording; deed recording may be buyer or seller per local custom. Fees are typically modest.
- Prepaid property taxes and homeowner’s insurance: buyers fund initial escrows at closing; amount depends on lender rules and timing.
- Prepaid interest: covers interest from funding to the start of the first payment; amount depends on closing date and rate.
- Escrow deposits: lenders often collect a couple months of taxes and insurance to seed the escrow account.
- Inspections: buyers typically pay; home inspections commonly $300 to $600, with optional termite, radon, or specialty inspections extra.
- Survey or boundary certification: often buyer-paid if required; usually $300 to $900.
- HOA documents or transfer fees: can be buyer or seller by contract; often $100 to $500 total.
- Miscellaneous: wires, flood certification, courier, and notary fees are typically small.
Seller costs: line by line
Sellers have several standard items. Your listing agreement and settlement statement will outline exact amounts.
- Real estate commission: typically paid by seller and commonly 5% to 6% of the sale price in total.
- Owner’s title insurance premium: in many NC transactions the seller pays this; confirm with your attorney and contract.
- Deed preparation and closing attorney fees: often seller-paid for deed and settlement tasks; commonly $200 to $800 for routine transactions.
- Prorated property taxes: seller pays for their period of ownership up to the day of closing. Proration shows on the settlement statement.
- Mortgage payoff and lien releases: any existing mortgage, judgments, or liens must be paid off from proceeds.
- State excise or transfer taxes and recording: North Carolina has excise taxes on deeds and county recording fees. Who pays can follow local custom, so confirm with your settlement agent.
- HOA resale or transfer fees: often seller responsibility; typically $100 to $400.
- Seller concessions or credits: any negotiated credit to the buyer for closing costs, repairs, or rate buydowns will reduce net proceeds.
Raleigh and Wake specifics to know
- Closing attorneys: North Carolina commonly uses closing attorneys to conduct settlement, handle funds, and record documents. Choose yours early so your lender can coordinate.
- Title insurance custom: in many NC deals, buyers pay for the lender’s policy and sellers pay for the owner’s policy. This is common but negotiable.
- Deed excise tax and recording: NC charges excise taxes on deed transfers and county recording fees. Who pays often follows local practice, so check your contract and confirm with your attorney.
- Wake County taxes and recording: property tax proration is standard. The seller is credited or charged based on the county’s tax calendar and the closing date. Recording fees and calendars are county specific, so verify with your settlement team.
- HOA resale packets: condos and many HOA communities in the Triangle require resale documents. Turnaround times vary and can delay closing if ordered late.
Estimate your costs: a simple worksheet
Use this quick worksheet to build a realistic estimate. Then ask your lender and closing attorney to fill in exact figures.
- Purchase price: $________
Buyer items:
- Lender fees / origination: ______ (% or $)
- Appraisal: $_______
- Credit report: $_______
- Inspections (home, termite, radon): $_______
- Title / lender’s policy: $_______
- Recording fees: $_______
- Prepaid interest (per lender estimate): $_______
- Initial escrow deposit (taxes/insurance): $_______
- HOA estoppel / resale fee: $_______
- Misc (wires, flood cert, survey): $_______
- Subtotal buyer closing costs = $_______
- Buyer % (subtotal / purchase price) = ______ %
Seller items:
- Broker commissions: % of sale = $_
- Owner’s title policy (if seller pays): $_______
- Deed/attorney fees: $_______
- Prorated property taxes (credit to buyer): $_______
- HOA resale packet (if seller pays): $_______
- Seller concessions / credits to buyer: $_______
- Payoff existing mortgage / liens: $_______
- Subtotal seller closing costs = $_______
- Seller % (subtotal / sale price) = ______ %
Timeline and key disclosures
If you are financing, federal rules help you see costs early. Your lender must provide a Loan Estimate within three business days of your application. This shows interest rate, monthly payment, and projected closing costs.
At least three business days before closing, you will receive the Closing Disclosure. Compare it to your Loan Estimate and ask your lender about any differences right away. Certain changes can trigger a new three day waiting period, so quick communication helps keep your timeline on track.
Tips to save and avoid surprises
- Shop lenders and compare Loan Estimates on the same day so you can weigh both interest rate and fees.
- Consider a lender credit to offset closing costs in exchange for a slightly higher rate, if it fits your long term plans.
- Ask for seller credits to cover some buyer closing costs. This can lower your upfront cash even if the price stays the same.
- Do not assume local customs. If you want the seller to pay for the owner’s title policy or an HOA fee, write it into the contract.
- Order inspections and HOA resale documents early. You need time to negotiate repairs or address issues.
- Ask your closing attorney for an itemized title estimate early, including expected title premiums and recording fees.
- Always verify wiring instructions by phone with your closing attorney. Avoid sending funds based on email alone.
Common delays and how to prevent them
- HOA document delays: request the resale packet as soon as your contract is signed and follow up.
- Title issues or liens: have your settlement team run title work early and resolve municipal or judgment items promptly.
- Last minute underwriting conditions: provide pay stubs, bank statements, and documentation quickly to your lender.
- Funding or wire mistakes: double check routing and account details by phone with your settlement agent and your bank.
Ready to plan your numbers?
Closing costs in Raleigh and Wake County are manageable once you break them down and build an estimate. Most fees are predictable, many items are negotiable, and your lender and closing attorney can provide exact figures well before closing. If you want a realistic estimate tailored to your price point, loan type, and community, we are here to help.
Have questions or want a custom breakdown for your property or offer strategy? Reach out to Rachel Greenwood for local guidance and a clear plan.
FAQs
How much should a Raleigh buyer budget for closing costs?
- Expect about 2% to 5% of the purchase price for buyer closing costs, separate from the down payment. Your Loan Estimate will show the most accurate figure.
Who usually pays real estate commission in Wake County?
- The seller typically pays the total commission, commonly about 5% to 6% of the sale price, which is then split per the listing agreement and MLS terms.
Does the seller pay for owner’s title insurance in North Carolina?
- In many NC transactions the seller often pays the owner’s title policy, but it is negotiable. Confirm this in your contract and with your closing attorney.
What if my Closing Disclosure is higher than my Loan Estimate?
- Ask your lender to explain any differences immediately. Certain changes can require a new three day review period, which may delay closing if not addressed quickly.
How are Wake County property taxes handled at closing?
- Taxes are prorated between buyer and seller based on the closing date and the county’s billing cycle. The proration appears as credits and debits on the settlement statement.
When should title work begin in a Raleigh purchase?
- Start title work as soon as your contract is signed. Early title searches help surface any issues in time to fix them without delaying closing.
