Closing costs are an essential aspect of any real estate transaction, encompassing various fees and taxes that buyers and sellers must pay to finalize the sale of a property. In North Carolina, these costs are relatively moderate compared to other states, but they can still significantly impact your overall financial planning. This guide provides an updated overview of closing costs in North Carolina, offering insights to help you navigate your home-buying or selling journey effectively.​

Understanding Closing Costs in North Carolina

Closing costs in North Carolina typically range from 2% to 5% of the home’s purchase price for buyers and approximately 8% to 10% for sellers. These percentages can vary based on factors such as the property’s location, price, and the specifics of the transaction.

Median Home Prices and Estimated Closing Costs

The median home value in North Carolina is approximately $328,682. Based on this figure, buyers can expect to pay between $6,573 and $16,434 in closing costs, while sellers might incur costs ranging from $26,294 to $32,868.

To illustrate, let’s consider the Raleigh housing market and surrounding cities: (Buyers might anticipate closing costs between 1% to 2.5% of this price.)

• Raleigh, NC: With a median home sale price of $435,000.
• Chapel Hill, NC: With a median home sale price of $614,000.
• Morrisville, NC: With a median home sale price of $595,000.
• Cary, NC: With a median home sale price of $560,000.
• Apex, NC: With a median home sale price of $550,000.
• Holly Springs, NC: With a median home sale price of $523,000.
• Rolesville, NC: With a median home sale price of $516,000.
• Pittsboro, NC: With a median home sale price of $500,000.
• Wake Forest, NC: With a median home sale price of $500,000.
• Carrboro, NC: With a median home sale price of $492,000.
• Hillsborough, NC: With a median home sale price of $444,000.
• Fuquay-Varina, NC: With a median home sale price of $419,000.
• Durham, NC: With a median home sale price of $380,000.
• Clayton, NC: With a median home sale price of $371,000.
• Garner, NC: With a median home sales price of $367,000.
• Youngsville, NC: With a median home sales price of $365,000.
• Knightdale, NC: With a median home sales price of $359,000.
• Wendell, NC: With a median home sales price of $350,000.
• Franklinton, NC: With a median home sales price of $330,000.
• Zebulon, NC: With a median home sales price of $330,000.

Common Buyer Closing Costs in North Carolina

Buyers in North Carolina should be prepared for several standard closing costs, including:

• Appraisal Fee: Typically ranging from $300 to $800, this fee covers the professional assessment of the property’s market value.

• Inspection Fee: A home inspection, costing between $300 and $500, is highly recommended to identify any potential issues with the property.​

• Loan Origination Fee: Charged by lenders for processing the new loan, this fee varies and should be discussed with your lender.​

• Title Insurance: This one-time fee protects against potential title disputes and is usually required by lenders.​

• Property Taxes and Homeowners Insurance: Buyers may need to prepay certain amounts at closing, depending on the lender’s requirements. ​

Common Seller Closing Costs in North Carolina

Sellers also encounter various closing costs, such as:

• Real Estate Agent Commission Fees: Typically amounting to 5%–6% of the sale price, these fees are negotiable and cover both the listing and buyer’s agents.​

• Recording Fee: Ranging from $600 to $700, this fee is paid to make the transaction a matter of public record.​

• Escrow Fee: This fee compensates the escrow agent for facilitating the transaction and varies based on the service provider.​

• Home Inspection Fee: Sellers may opt for a pre-listing inspection, costing around $400–$600, to identify and address issues before listing the property.

Strategies to Mitigate Closing Costs

Both buyers and sellers can employ strategies to reduce their closing costs:

• Negotiation: Buyers can request that sellers cover certain closing costs or repair expenses identified during inspections. Sellers can negotiate agent commissions to lower their expenses.​

• Assistance Programs: Buyers should explore eligibility for federal, state, or local assistance programs designed to aid with down payments and closing costs.​

• Shop Around: Comparing services from various lenders, title companies, and inspectors can help secure competitive rates and reduce overall expenses.​

The Importance of Professional Guidance

Navigating the complexities of closing costs and real estate transactions in North Carolina is best accomplished with the assistance of experienced professionals. Partnering with a trusted local real estate agent and mortgage broker ensures you receive personalized advice tailored to your unique situation, helping you make informed decisions and potentially saving you money.​

At Certified Home Loans, we are committed to guiding you through every step of the home buying or selling process. Our team of local mortgage experts is dedicated to providing personalized solutions that align with your financial goals—including our exclusive No Closing Cost Program to help you save more at closing.

Contact Certified Home Loans today at 919-510-1108 to begin your journey toward a successful real estate transaction in North Carolina.

Please note that the information provided in this article is for informational purposes only and does not constitute financial advice. Closing costs and real estate market conditions can change over time. For the most accurate and personalized information, consult with a qualified real estate professional or mortgage advisor.