Closing Costs in North Carolina

Decoding Closing Costs: A Quick Guide to Buying and Selling Homes in North Carolina

In the realm of U.S. Real Estate, where the median home price was $420,321, according to the National Association of Realtors, the significance of closing costs cannot be overstated. These costs, comprising fees and taxes integral to every property transaction, can add up to 5 percent of the loan amount.

Closing costs exhibit significant variability across states, with North Carolina emerging as a relatively affordable option. Data from CoreLogic’s ClosingCorp reveals that the average closing costs in the Tar Heel state hover around a mere 1.1 percent of the sale price. This figure starkly contrasts other states; for instance, Pennsylvania’s closing costs can reach up to 4.3 percent, while neighboring Virginia sees an average of 1.7 percent.

In North Carolina, the median selling price of a single-family home, as reported by Redfin, was $368,300 in March 2024. Translating this into closing costs, at 1.1 percent, amounts to approximately $4,051. These costs typically include the lender’s and owner’s title policies, appraisal, settlement, recording fees, and transfer tax, among others. However, it’s essential to note that some fees like escrow charges, agent commissions, and optional mortgage points are not encompassed within this percentage.

The actual amount incurred in closing costs can fluctuate significantly based on the local market dynamics. For instance, the median sale price in Mount Airy, NC stands at $200,000, equating to closing costs of about $2,203. Conversely, booming cities like Charlotte and Raleigh, with just over $400,000 medians, entail closing costs of around $4,400. Opting for a coastal residence in Kure Beach would command a median sale price of $921,000, resulting in closing costs exceeding $10,000.

In North Carolina, both buyers and sellers share the responsibility of covering closing costs, with sellers typically bearing a larger financial burden due to real estate agent commissions. However, the allocation of these costs can vary based on negotiations and local market conditions. Common closing costs for buyers include origination fees, mortgage points, title-related fees, insurance premiums, property taxes, appraisal, inspection, and recording fees. On the other hand, sellers are tasked with covering agent commissions, excise tax, prorated property taxes and HOA fees, wire fees, and potential seller concessions.

Mitigating closing costs is possible through negotiation strategies. For instance, buyers can request sellers to cover repair expenses identified during home inspections, while sellers can negotiate real estate agent commissions. Additionally, buyers may explore eligibility for federal, state, or local assistance programs, such as the NC Home Advantage Mortgage program, aimed at first-time buyers.

Navigating the intricacies of real estate transactions in North Carolina is best facilitated with the guidance of a trusted local real estate agent and mortgage broker. Whether in the Research Triangle, Charlotte, or coastal regions, a knowledgeable team can streamline the process and secure favorable deals.

Call Certified Home Loans today and let’s get started together at 919-510-1108.