Say Hello to Our Customer Care Team
Buying or selling a home in North Carolina comes with a set of closing costs that can feel confusing at first, but they’re very manageable once you know what to expect. Here’s a simple breakdown to help you plan with confidence.
What Are Closing Costs?
Closing costs are the fees and expenses paid at the end of a real estate transaction. They’re separate from your down payment and cover lender charges, title services, taxes, and prepaid items like insurance and interest.
Both buyers and sellers contribute, but the types of fees vary.
Closing Costs for Buyers in North Carolina
Buyers typically pay 2%–5% of the purchase price in closing costs.
Example: On a $400,000 home, buyers usually spend $8,000–$20,000.
Common Buyer Closing Costs Include:
- Loan origination and lender fees
- Appraisal and credit report
- Survey fees (common in NC purchases)
- Attorney fees (NC requires attorney closings)
- Title insurance
- Recording fees
- Prepaid insurance and taxes
One North Carolina–specific element is that real estate closings are handled by attorneys, so you’ll see attorney fees included in your buyer costs.
Closing Costs for Sellers in North Carolina
Sellers generally pay around 1%–3% of the sale price, plus agent commissions.
Example: On a $400,000 home, seller closing costs are often around $4,000–$12,000 before commissions.
Common Seller Closing Costs Include:
- Attorney fees
- Title services
- Owner’s title insurance (paid by buyers in some areas, sellers in others)
- Excise tax (state transfer tax)
- Prorated property taxes
- HOA dues
North Carolina’s excise tax is $2 per $1,000 of the sale price statewide.
Understanding Set Closing Costs on New Builds
New construction homes usually come with predetermined closing costs, which differs from the flexibility you may find when buying a resale home. Many builders also provide incentives during the year, such as paid closing costs, to make your new home more affordable.
The Bottom Line
- Buyers: Expect 2%–5%
- Sellers: Expect 1%–3%, plus commissions
- Everyone: Attorney closings and local customs can affect totals
If you're financing a home in North Carolina, M/I Financial is here to guide you through the lending process. Our team helps break down closing costs, compares loan options, and offers competitive rates to make your homebuying journey smooth and stress-free.
Recommended Stories
How Much Are Closing Costs in Tennessee?
