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Real Estate Closing Cost Calculator

Closing costs are 2–5% of purchase price for buyer, 6–10% for seller (with broker commission).

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Buyer total closing

$11,500

% of price

0.02%

Origination fee

$4,000

How the math works

Closing = origination + title + recording/transfer + misc.

$500k × 1% × loan + 0.5% title + 0.5% recording + $2,500 = $4k + $2.5k + $2.5k + $2.5k = $11,500.

How to Use

  1. Enter purchase price.
  2. Enter loan amount.
  3. Enter origination fee %.
  4. Enter title insurance %.
  5. Enter recording + transfer tax %.
  6. Enter misc closing fees.
  7. Read buyer total closing.

Frequently Asked Questions

Buyer vs seller closing costs?

Buyer typical: 2–5% of price. Title insurance lender: 0.20–0.50%. Recording fee: $50–250. Inspection: $300–800. Appraisal: $500–800. Origination: 0.5–2% of loan. Property tax escrow: 2–6 months prepaid. Insurance prepaid: 1 year. HOA assessment: prorated. Seller typical: 6–10% with broker commission. Broker: 5–6%. Title owner's policy (regional varies): 0.40–0.80%. Transfer tax: 0–4% (state-dependent). Attorney/escrow: $500–2,500.

How does this affect deal economics?

Transaction economics — closing costs, escrow holdbacks, post-close true-ups, broker comp, title savings — directly reduce buyer or seller proceeds. Often 1–4% of deal value cumulatively. Allocate deliberately in PSA negotiation. Reps and warranties insurance (RWI) becoming standard for $20M+ transactions to backstop indemnification.

Standard market practice?

Major markets follow ALTA closing protocols. Buyer typically pays: lender title, recording fees, half escrow, half conveyance tax (varies). Seller pays: owner's title, broker comp, half escrow. Mortgage recording tax (NY, FL): substantial. Transfer tax (CT, DE, NJ, PA): 1–4%. Allocations negotiable but standard market practice limits negotiation leverage.

Risk allocation?

Holdbacks and escrows backstop seller indemnities for representations and warranties. Standard: 1–2% of purchase price for 12–18 months. Larger for: leasing risk, environmental, litigation, tenant credit. RWI shifts indemnity to insurer (1–4% of policy limit premium). Use earnouts for performance risk on operating businesses or stabilizing assets.

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