When it comes to purchasing a new home, there are many factors to consider, including budgeting for closing costs. Closing costs are the fees and expenses associated with finalizing a real estate transaction and transferring ownership of a property from the seller to the buyer. If you’re feeling overwhelmed, don’t worry. This article will guide you through how much closing costs are in Massachusetts, who pays for them, and what costs you can expect to incur as a buyer and as a seller.
How much are closing costs in Massachusetts?
On average, closing costs in Massachusetts typically range from 2%-5% of the home’s purchase price. Keep in mind that this is just an estimate, and the actual amount will depend on various factors such as the buyer’s loan program and negotiations with the seller.
For example, if you’re buying a home in Boston with a median sale price of $797,000, closing costs could range from $15,940 to $39,850. Similarly, if you’re purchasing a home in Milton with a median sale price of $955,000, closing costs could be anywhere from $19,100 to $47,750.
Who pays closing costs in Massachusetts?
In Massachusetts, both the buyer and the seller typically share the burden of paying closing costs. However, the amount each party pays can vary depending on the specific costs involved. Buyers usually pay their closing costs out of pocket, while sellers may have their costs deducted from the proceeds of the home sale.
Buyer closing costs in Massachusetts
Closing costs for buyers in Massachusetts usually range between 2%-5%. Some common closing costs that buyers may incur include appraisal fees, inspection fees, loan origination fees, loan processing fees, loan discount points, private mortgage insurance, title insurance, homeowners insurance, homeowners association dues, and property taxes.
Seller closing costs in Massachusetts
Sellers in Massachusetts may be responsible for covering costs such as real estate agent commission fees, homeowners association fees, unpaid property taxes, title insurance, and transfer taxes. These costs can vary depending on the specific circumstances of the sale.
Median home sale price data sourced from the Redfin Data Center as of July 2024.