Closing Costs

Closing costs are a part of every real estate transaction — for both buyers and sellers. While the exact amounts vary depending on the property, financing, and terms of the agreement, understanding what to expect can help you plan ahead and avoid surprises.

In Vermont, closing costs are outlined in your Purchase & Sale Agreement, lender disclosures, and attorney documents. Here’s a clear breakdown of how they typically work.

What are Closing Costs?

Closing costs are the fees and expenses associated with finalizing a real estate transaction. These costs go beyond the purchase price of the home and cover services, taxes, and administrative steps required to transfer ownership.

Both buyers and sellers have closing costs, and each side is responsible for different parts of the transaction.

Buyer Closing Costs

For buyers, closing costs are primarily related to financing, due diligence, and securing ownership of the property.

Buyer closing costs may include:

• Inspections (home, radon, water, and others depending on the property)
• Loan-related charges and prepaid interest
• Vermont Property Transfer Tax
• Attorney closing and title search fees
• Lender’s title insurance
• Optional owner’s title insurance
• Recording fees for documents in the buyer’s name
• Homeowner’s insurance premium (if required by the lender)
• Prorated costs such as property taxes, fuel, and HOA dues
• Additional lender, attorney, or administrative fees

These costs are typically reviewed in detail by your lender and attorney before closing so you know exactly what to expect.

Seller Closing Costs

For sellers, closing costs are tied to transferring ownership and settling existing financial obligations tied to the property.

Seller closing costs may include:

• Listing brokerage compensation and cooperating broker fees (as agreed)
• Negotiated contributions toward buyer costs (if applicable)
• Attorney document preparation and closing-related legal fees
• Payoff of existing mortgages and related fees
• Recording fees to clear title
• Prorated property taxes, fuel, utilities, and HOA dues
• Required inspections (such as septic, chimney, or heating systems)
• Condo or HOA documents and resale certificates (if applicable)
• Municipal or association fees required to complete the transfer

Each transaction is different, and your Realtor® and attorney will walk you through these items before closing.

What Can Vary?

Closing costs are not one-size-fits-all. They can vary based on:

• financing type and lender requirements
• property type (single-family, condo, multi-family)
• inspection needs
• negotiated terms between buyer and seller
• timing of closing (which affects prorations)

Because of these variables, your final numbers are always specific to your transaction.

How to Prepare

The best way to prepare for closing costs is to understand them early in the process.

• Buyers should review lender estimates carefully
• Sellers should discuss expected costs with their Realtor® before listing
• Both sides should plan for these expenses as part of their overall financial picture

Clarity ahead of time helps avoid last-minute surprises.

Final Thought

Closing costs are a normal part of buying or selling a home. While they can seem complex at first, they are simply the details required to move a transaction from contract to closing.

With the right preparation and guidance, they become a predictable and manageable part of the process.