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  • Emily Humes

Closing Costs

How much are closing costs in North Carolina?

In North Carolina, the buyer and the seller are both responsible for paying portions of the closing cost. Closing costs can generally be made up of administrative fees including transfer taxes, insurance fees, title fee, home appraisal fees, home inspection fees, escrow fees, loan origination fees, realtor commission, mortgage payoff, and other fees. It is important to note that some of these costs can be negotiated, so make sure you ask questions to determine if you can save some money!



Title Fees

There are two types of title fees, including title search and title insurance fees. A title search is conducted through public records to discover the ownership history of the property and verifies the seller’s ownership of title over the property. The title search will indicate whether the current owner is caught up on all payments and fees and whether the property has marketable title. Marketable title is free of any defects that could prevent a reasonable buyer from purchasing the property, including encumbrances such as mortgages or other liens. The buyer is typically the party that pays for the title search. In North Carolina, you can expect to pay between $75 and $200 dollars for a title search.

Although, title insurance is not required, it can protect you and your lender if any problems arise during the title transfer. This fee is a one-time expense paid by the buyer. In North Carolina, title insurance can ran range from 0.22% -0.25% of the purchase price of the home.

The buyer will also be responsible for paying the recording fee on the deed. Once the deed is recorded in the County Registrar’s office, the buyer is required to pay a one-time recording fee. Although the amount of this fee can vary from county to county, it is usually $26 for the instruments and $64 for the deeds of trust and mortgages to be recorded.

Home Appraisal Fee

It is the buyer’s responsibility to pay for the home to be appraised. Appraisals are typically done by a third party and help determine the value of the home the buyer is looking to purchase. Although the appraisal cost can vary, in North Carolina typical appraisal fees will be anywhere from $300 -$400.

Home Inspection Fee

Buyers are responsible for paying to have inspection done on the home they are looking to purchase. Buyers tend to contract an independent home inspect to check out the property to make sure that it is up to proper standards. Inspectors look at the foundation of the home, plumbing, electrical wiring, roofing, gas and water lines, heating and central air condition, attic and insulation, and other aspects of the property. Buyers tend to conduct inspections to understand the condition of the home, but also to have an opportunity to negotiate the purchase price with the seller if an aspect of the property needs improvement. The inspection provides the buyer with protection against structural problems or other issues that could cause them to spend thousands of dollars to repair down the line. The average home inspection in North Carolina will be in between $400 and $500, however for smaller homes or condos, it may be as low as $200.

Overall, home buyers can expect to pay .02 to 0.5% of the home’s purchase price in total closing costs, along with the down payment.






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