Buying a new home is an exciting and big decision, whether it’s your first rodeo or not. But before you dive too deep into furniture shopping, picking out new colors for your bathroom, or re-designing your backyard, you’ll want to budget 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 unprepared or overwhelmed, don’t worry. To help you budget for closing costs, this Redfin article will cover how much closing costs are in Massachusetts, who pays for them, and which costs you can expect to pay as a buyer and as a seller.
How much are closing costs in Massachusetts?
Before securing the keys to your new home, homebuyers will need to pay for closing costs. On average, closing costs in Massachusetts typically range from 2%-5% of the home’s purchase price. But it’s important to remember that this is just a range and the total amount will depend on a number of factors, such as the buyer’s loan program or negotiations made with the seller.
Let’s say you’re buying a home in Boston, where the median home sale price is $797,000. Based on this, you could expect closing costs to be between $15,940 and $39,850. Whereas if you’re buying a home in Milton, which has 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 most areas, including Massachusetts, both the buyer and the seller will pay closing costs. But, each party’s closing costs amount will vary depending on what they are required to pay. Another thing to keep in mind is that buyers typically pay for closing costs out of pocket, while the seller’s closing cost payments are often deducted from the home sale proceeds.
Buyer closing costs in Massachusetts
Closing costs in Massachusetts for buyers typically range between 2%-5%. In most cases, you’ll pay…