Buying or selling a home in Boston comes with more than a price tag. Closing costs play a big role in your budget, and the details can feel confusing if you have not seen a breakdown before. You want to know who pays what, what is normal in Massachusetts, and how to plan without surprises. In this guide, you will learn the typical costs for buyers and sellers in Boston and Suffolk County, what is unique to Massachusetts, and simple steps to get your exact number. Let’s dive in.
What closing costs cover
Closing costs are the fees, taxes, and prepaid items due to complete a real estate transfer. For buyers, these are paid in addition to the down payment. For sellers, they are taken from the sale proceeds. Who pays which items depends on local custom and negotiation, but the ranges below will help you plan.
- Buyers often spend about 2% to 5% of the purchase price in closing costs, not including the down payment.
- Sellers commonly spend about 6% to 10% of the sale price when you include the real estate commission. Your net can vary with the commission you negotiate, your mortgage payoff, and any credits.
Exact figures depend on the property type, loan terms, and local charges. Your lender and closing attorney will give you written estimates as you move forward.
Buyer closing costs in Boston
As a buyer, you will see a mix of lender fees, third-party services, and prepaids. If you finance your purchase, your lender will give you a detailed Loan Estimate early and a Closing Disclosure at least 3 business days before closing.
Earnest money deposit
You will likely make an earnest money deposit to show good faith. In many markets this is about 1% to 3% of the price, but the amount is negotiable. It is not a fee. It is credited toward your cash due at closing.
Loan fees and points
If you are financing, you may see:
- Origination or application fee. This can range from none to about 1% of the loan amount.
- Underwriting, processing, or admin fees. These are flat fees that often run in the hundreds to low thousands.
- Discount points. Optional charges to reduce your interest rate. One point equals 1% of the loan amount.
- Upfront mortgage insurance. Certain loan programs may include it depending on your down payment.
Your lender is your source for exact numbers. Use the Loan Estimate to compare options.
Appraisal and inspections
- Appraisal. Most lenders require one to confirm value. In the Boston area, single-family and condo appraisals often run about 400 to 900 dollars, with higher costs for complex homes or multifamily.
- Inspections. Plan for a general home inspection in the 300 to 800 dollar range. Specialty inspections like pest, radon, oil tank, sewer, or lead paint add to the total.
Title and closing services
Massachusetts closings are commonly handled by a title company and/or a closing attorney. Fees vary by firm and loan type.
- Title insurance. Lenders usually require a lender’s title policy. An owner’s policy is optional but commonly recommended. In parts of Massachusetts, sellers sometimes pay for the owner’s policy as a convenience, but practices vary by town and by firm. Always confirm who pays in your deal.
- Title premiums are one-time charges tied to price or loan amount. A rough national range is about 0.2% to 0.8%, but you will get an exact quote from your closing agent.
- Settlement or attorney fee. Often a flat fee, commonly about 400 to 1,500 dollars for buyer-side services.
Recording and municipal fees
Your deed and mortgage documents are recorded at the Suffolk County Registry of Deeds. Recording fees depend on the document type and number of pages. To see current categories and costs, review the Suffolk County Registry of Deeds recording fees or ask your closing attorney for today’s schedule.
Prepaids and escrow items
- First year of homeowner’s insurance is often paid at closing.
- Property tax prorations depend on the closing date and the city or town billing cycle.
- Prepaid mortgage interest covers the period from closing to your first payment.
- Some HOAs or condo associations charge transfer fees or require a few months of dues in escrow.
Cash-to-close overview
Your cash due equals your down payment plus closing costs plus prepaids and required reserves, minus your earnest money deposit. Review your Closing Disclosure at least 3 days before closing for final figures.
Seller closing costs in Boston
Sellers pay a different set of costs, with the commission being the largest line item in many cases.
Commission and representation
Many sellers pay a combined broker commission that is commonly 5% to 6% of the sale price, split between listing and buyer representation. This amount is negotiated in your listing agreement and paid from proceeds at closing.
Payoffs, taxes, and prorations
- Mortgage payoff. Your lender will issue a payoff statement. Pay attention to the expiration date and any per diem interest.
- State deed excise tax. Massachusetts imposes a tax on certain real estate conveyances. Rates and rules can change, so confirm the current requirements with the Massachusetts Department of Revenue or your closing attorney.
- Recording fees. Releasing or discharging mortgages and recording the deed carry fees at the Suffolk County Registry of Deeds.
- Prorations. Property taxes, water, sewer, condo assessments, or other municipal charges are prorated to the closing date.
Title insurance and closing fees
In some Massachusetts transactions, sellers may pay for the owner’s title policy by local custom, but it varies by area and by transaction. Confirm with your listing agent and closing attorney. Sellers also often retain their own attorney. Fees for seller-side legal and closing services vary by firm.
Repairs and concessions
If you agreed to repairs, inspection credits, or a contribution to the buyer’s closing costs, include those in your net sheet. Your settlement statement will show the final amounts.
Boston specifics to verify
- Deed recording fees. Recording fees are set and collected at the Suffolk County Registry of Deeds. Check the current fee schedule or ask your closing agent for exact totals.
- State deed excise. Massachusetts applies a state-level tax to many real estate transfers. Because rules and thresholds can change, verify the current rate with Mass DOR or your title company.
- Municipal charges. Some cities and towns consider or adopt local transfer measures or surcharges. Confirm with your closing attorney or the city clerk whether any local fees apply to your property.
- Who pays for owner’s title insurance. Practice varies across Massachusetts communities. Ask your agent and closing attorney what is customary for your specific town and property type.
How to get your exact number
Your lender and closing attorney are the authorities for line-by-line figures. Here is how to get precise numbers early.
For buyers: quick checklist
- Have a copy of your accepted offer or purchase and sale agreement.
- Ask your lender for an updated Loan Estimate with itemized closing costs.
- Request a draft settlement statement from your title company or closing attorney.
- Confirm who will pay for the owner’s title policy in your transaction.
- Verify recording fees with the Suffolk County Registry of Deeds and ask your closing agent about any local municipal fees.
- Prepare proof of funds for down payment, earnest money, and closing costs.
For sellers: quick checklist
- Contact your lender for an updated mortgage payoff and per diem interest.
- Ask your listing agent for a net sheet that includes commission, estimated closing fees, prorations, and potential transfer taxes.
- Confirm with your closing attorney whether the seller is expected to pay for the owner’s title policy.
- Check on any HOA or condo transfer fees and outstanding assessments.
Hypothetical example: Boston condo
Below is an illustrative example to show scale. These are not quotes and your numbers will differ.
- Purchase price: 750,000 dollars; buyer puts 20% down.
- Buyer costs, illustrative:
- Loan fees and points: about 0.5% to 1.0% of the loan amount, roughly 2,250 to 7,500 dollars.
- Appraisal: about 500 dollars.
- Inspections: about 650 dollars total for home and pest.
- Title insurance and lender’s policy: roughly 0.3% to 0.6% of price, or about 2,250 to 4,500 dollars combined. Actual allocation varies.
- Attorney or settlement fee: about 500 to 1,200 dollars.
- Prepaids and escrows: often 2,000 to 5,000 dollars depending on timing.
- Approximate buyer closing costs: 8,650 to 21,350 dollars plus a 150,000 dollar down payment.
- Seller costs, illustrative:
- Commission at 6%: 45,000 dollars.
- Seller closing, attorney, and title fees: about 1,000 to 3,000 dollars.
- Transfer and recording-related charges: often 1,000 to 4,000 dollars, plus mortgage payoff as applicable.
- Approximate seller closing costs: 47,000 to 52,000 dollars or more.
Your lender’s Closing Disclosure and your settlement statement will replace estimates with exact figures before you sign.
Final thoughts and next step
You do not need to memorize every line item to be prepared. Focus on the typical ranges for your side of the table, know what is customary in Boston, and get written estimates early. With the right team, you will review clear, final numbers before closing so you can move forward with confidence.
If you want a personalized estimate for your Boston or MetroWest purchase or sale, reach out. You will get a calm, step-by-step plan and local guidance tailored to your timeline. Connect with Ashley Fuller to get started.
FAQs
Who typically pays for the owner’s title insurance in Boston?
- Practices vary across Massachusetts. In some transactions sellers pay for the owner’s policy as a convenience, but it is negotiable. Confirm with your agent and closing attorney for your town and deal.
How much should a Boston buyer budget for closing costs aside from the down payment?
- A common planning range is about 2% to 5% of the purchase price, plus prepaids and reserves. Your lender’s Loan Estimate and Closing Disclosure will show exact amounts.
When will I see my final buyer closing numbers in Massachusetts?
- Most buyers receive a Closing Disclosure at least 3 business days before closing that lists exact cash-to-close. Your title company or closing attorney will confirm the final wire amount.
What are the biggest closing costs for Boston sellers?
- The commission is typically the largest cost, often 5% to 6% of the sale price by custom and negotiation. Other costs include your mortgage payoff, deed excise tax, recording fees, prorations, and any credits.
Where can I confirm Massachusetts deed excise tax and Suffolk County recording fees?
- Check the Massachusetts Department of Revenue for deed excise guidance and the Suffolk County Registry of Deeds for current recording fees, or ask your closing attorney for today’s totals.
