With all the whirlwind of finding the perfect home, making an offer, getting it accepted and working through all the conditions, it's easy to forget about the costs that will be incurred upon a successful closing. In order to help you prepare, here is an estimated breakdown of what to expect :
- Deed Transfer Tax: Depending on the location of the property you're purchasing, this will cost between 1.0-1.5% of the purchase price.
- Lawyer: While the legal costs depend on the complexity of the transaction, they generally run between $1,000-1,250 for a standard real estate purchase.
- Adjustments: Your lawyer will be able to confirm the property tax adjustment. If the house has oil or propane tanks, you will need to credit the sellers for a full tank, usually between $700-800.
- Title Insurance: Lenders typically require this document, which usually costs between $300-450.
Since there are so many variables, a rule of thumb is to budget $3,500 + 1.5% of the purchase price.