How Much Are Closing Costs in Minnesota?
Closing costs in Tennessee tend to be more affordable than in many other states, but it’s still important to know what to expect as you prepare to buy or sell a home. Here’s an easy breakdown to help you plan confidently.
What Are Closing Costs?
Closing costs are the fees paid when a property officially transfers from seller to buyer. They’re separate from the down payment and include lender fees, title services, taxes, and prepaid items.
Both parties contribute, but the amounts differ.
Closing Costs for Buyers in Tennessee
Buyers typically pay 2%–5% of the purchase price in closing costs.
Example: For a $400,000 home, that’s usually $8,000–$20,000.
Common Buyer Closing Costs Include:
- Loan origination and lender fees
- Appraisal and credit report
- Title insurance
- Recording fees
- Transfer tax (split in many counties, buyer-paid in others)
- Prepaid property taxes and insurance
Tennessee has relatively low property taxes, so prepaid escrows tend to be less expensive than in many states.
Closing Costs for Sellers in Tennessee
Sellers often pay 1%–3% of the sale price in closing costs, plus real estate commissions.
Example: On a $400,000 home, sellers usually spend $4,000–$12,000 before commissions.
Common Seller Closing Costs Include:
- Title services
- Owner’s title insurance (varies by county who pays)
- Transfer tax (split or seller-paid depending on local custom)
- Prorated taxes
- HOA fees
- Realtor commissions (typically 5%–6%)
Tennessee’s transfer tax is $0.37 per $100 of the sale price, though who pays may vary by region.
How Closing Costs Work for New Construction Homes
When you purchase a new construction home, closing costs are typically set in advance rather than negotiated like they often are with resale homes. Builders also run incentives throughout the year, including offers that cover closing costs to help reduce your overall expenses.
The Bottom Line
- Buyers: Budget 2%–5%
- Sellers: Expect 1%–3%, plus commissions
- Everyone: Transfer tax customs vary by county
Whether you're buying in Middle Tennessee or the fast-growing Knoxville area, M/I Financial offers personalized loan guidance, competitive interest rates, and clear explanations of your closing costs. Our goal is to make your financing experience simple and stress-free from application to closing day.
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