Congratulations! You are in the final stretch! However, the joy of finalizing the real estate deal brings with it the stress of financial planning. Closing costs in North Carolina are a sum of expenses you should plan for when buying or selling a house.
Key Takeaways
- Closing costs or “settlement costs” are a set of final expenses paid for completing a real estate transaction.
- The seller and the buyer both pay closing costs in North Carolina.
- The 3 major Seller Closing Costs in North Carolina are:
- 1. REALTOR Fee
- 2. Recording Fee
- 3. Escrow Fee
- The 3 major Buyer Closing Costs in North Carolina are:
- 1. Loan Origination Fee
- 2. Escrow or Impound Account
- 3. Appraisal Fee
- In North Carolina, real estate transactions are usually closed by attorneys.
💰 CLOSING COST CALCULATOR NORTH CAROLINA
What are Closing Costs in North Carolina?
Closing costs in North Carolina are a sum of fees that have to be paid to different stakeholders. Closing costs are essential for finalizing the real estate deal and transferring ownership of the house. These settlement costs are paid in addition to the net property amount.
Who Pays Closing Costs in North Carolina?
Both the buyer and seller pay certain closing costs at the end of the real estate transaction in North Carolina.
The seller shells out a higher monetary amount as closing costs as they pay the REALTOR commission. Other fees, like documentation charges, transfer fees, etc., are paid by the buyer.
Some closing costs are negotiable, while others are non-negotiable, like taxes charged by your state or local jurisdiction.
Depending upon the conditions of the current housing market in North Carolina, the buyer or the seller can negotiate their share of the closing costs. For example, in a buyer’s market, the seller may have to bear a portion of the buyer’s closing costs.
Who Pays Closing Costs on FSBO in North Carolina?
While For Sale By Owner (FSBO) property sellers do not have to pay heavy real estate agent commissions, they cannot completely escape closing costs. Some of these are:
1. Transfer Taxes (0.11%-2.2%)
Transfer tax is charged by the state and/or municipality before the ownership is transferred from the seller to the buyer. In North Carolina, the transfer tax is levied by the county. All counties in the Golden State charge a transfer tax amounting to $1.10 per $1,000 of property value.
2. Seller’s Attorney Fees ($150-$350 an hour)
The law in North Carolina does not mandate the presence of an attorney for FSBO real estate transactions. However, it is highly advised to hire a real estate attorney for FSBO North Carolina deals to avoid any type of legal risk.
A real estate attorney guides the owner in preparing the necessary documents like the North Carolina residential real property disclosure and drafts of other legal paperwork.
» Free Websites to List For Sale By Owner: Check out the blog to know about the best FSBO websites in 2023.
3. Pre-listing Appraisal ($400-$600)
FSBO sellers may have to invest in the pre-listing appraisal, as it would help them find an appropriate buyer in less time. This will, in turn, lower the number of days on the market and make the sale faster.
» Average Cost of Home Appraisal in North Carolina: Find out more about this North Carolina closing cost.
How Much are Closing Costs in North Carolina?
The closing cost in North Carolina for sellers is approximately 8%–10% of the home’s agreement value, while the buyers are expected to pay around 2%–5% of the home’s purchase price.
Let’s put this in perspective! The median home value in North Carolina is $328,682. So, if you are selling a house, you may have to pay $26, 294- $32,868 as closing costs. On the other hand, if you are buying a house, your closing costs may range between $6,573 to $16,434.
How Much are Closing Costs for Sellers in North Carolina?
As mentioned above, when selling a house in North Carolina, you will have to pay some closing costs to legally transfer the house ownership to the buyer. These costs include several fees that need to be paid over and above the net price of the property.
Some seller closing costs are negotiable. Real estate agents usually have information about who pays what at closing and can help you save on closing costs.
Here are some of the prime seller closing costs in North Carolina.
1. REALTOR Fee
The seller pays real estate commissions to both the listing agent and the buyer’s agent. The real estate commission in North Carolina usually amounts to 5%-6% of the agreement value.
» How To Negotiate Real Estate Commission: Check out this blog to find out how to negotiate REALTOR commissions like a pro!
2. Recording Fee
The recording fee is paid by the seller to make the real estate transaction a matter of public record. In North Carolina, the recording fee ranges from $600 to $700 across different counties.
3. Escrow Fee
An escrow agent is an unbiased third party who helps you and the buyer complete the transaction. They clear the house for sale, transfer the ownership to the buyer, and the respective funds to the seller.
The escrow fee is the remuneration charged by the escrow agent for their services.
» Average Closing Costs in North Carolina for Seller: Here is a detailed breakdown of seller closing costs in North Carolina.
4. Home Inspection Fee
Sellers can opt for a home inspection to identify any major defects and issues, like plumbing issues, water damage, mold, appliance malfunction, etc., in the house that they must resolve before selling.
This can be done before the property is listed on the market (pre-inspection) or just before the closing. Home inspection in North Carolina usually costs around $400-$600.
The buyer can also undertake a home inspection. However, if home inspectors in North Carolina find undisclosed defects, it might give them the upper hand during negotiations, or they may back out of the deal.
» What is the Average Cost of Home Inspection in North Carolina: Home inspection is an important part of a real estate transaction. Here’s what you need to know.
How Much are Closing Costs for Buyers in North Carolina?
These are the closing costs paid by the buyer while acquiring the property ownership from the seller. Like seller closing costs, these too are negotiable. Hence, hiring a buyer’s agent can help you save on closing costs.
We have listed some of the prime buyer closing costs.
1. Loan Origination Fees
Some mortgage lenders charge buyers a loan origination fee to execute the loan with other respective documentation and legal formalities. The loan origination fee usually amounts to 1% of the mortgage loan amount.
» Subprime Mortgage Lenders North Carolina: Here’s our pick of mortgage lenders in North Carolina you can choose from.
2. Mortgage Escrow Account/ Impound Account
A part of the buyer’s monthly mortgage payments is reserved in an escrow or impound account by the mortgage lender. This reserve is maintained to pay the property tax and homeowners insurance premiums.
A mortgage servicer manages the mortgage escrow account and makes the payments on behalf of the buyer.
3. Appraisal Fee
Appraisal fees are paid to the North Carolina real estate appraiser who assesses the home value and ensures you get the best competitive price.
The cost for home appraisal in North Carolina varies between $300 and $500, depending on the property characteristics like its actual saleable area and its geographical location.
» How Much are Closing Costs for Buyers in North Carolina: Here is a breakdown of North Carolina closing costs for buyers.
4. Title Insurance
A title company offers a title policy in NC to protect the insured against any type of loss with respect to any outstanding taxes, unpaid dues, default in the title, or any violations. Title insurance premiums in North Carolina could cost around $200-$250.
» How Much Does Owner’s Title Insurance Cost in North Carolina: Protect your real estate investment with owners’ title insurance. Learn more.
5. Land Survey Fee
A land survey is mandatory by law for buyers in North Carolina & Florida. The cost of a land survey may start from $250 and go further depending on the size of the land.
How are Closing Costs Calculated?
It is important to calculate closing costs while selling a house or buying one.
The estimated closing costs give sellers an idea about the home equity they will have after the sale and helps buyers find out the amount they will have to pay over and above the agreement value of the house.
» Closing Cost Calculator: Check out the closing costs calculator for calculating the closing costs for your real estate transaction.
How to Calculate Closing Costs for Seller?
Houzeo’s Home Sale Calculator helps calculate closing costs for sellers in North Carolina with a swish and a click! All the sellers have to do is enter their property location, home sale price, mortgage payoff, seller agent commission, and buyer agent commission and voila!
The Seller Closing Cost Calculator even gives sellers an estimate of their home inspection and warranty fees. With the help of this home sale proceeds calculator, sellers can find out their home equity and be prepared for closing.
» Seller Closing Cost Calculator North Carolina: Check out the seller closing costs calculator for calculating the closing costs for the seller.
How to Calculate Closing Costs for Buyers?
Houzeo’s Buyer Closing Cost Calculator helps calculate closing costs for buyers in North Carolina. For finding the estimated buyer closing costs, the buyers have to add the property location, home purchase price, and the down payment in the buyer closing cost estimator.
The closing cost calculator for buyers gives a detailed list of the buyer’s estimated closing costs.
Home buyers can find out everything right from origination fees, appraisal fees, and survey fees to the title search, attorney fees, recording fees, prepaid interest charges, escrow property taxes, and owner’s title insurance.
The Buyers Closing Cost Calculator even shows which fees have to be paid before closing and which ones have to be paid at closing.
» Buyer Closing Cost Calculator North Carolina: Check out the closing costs calculator for a buyer for calculating the closing costs for the buyer.
Closing Costs in North Carolina for Refinance
Before we dive into closing costs for refinance, let’s look at the term refinance:
What is Refinancing?
Refinance, also called “Refi,” is nothing but replacing your current loan with one that offers a lower rate of interest. This helps lower monthly mortgage payments.
How Much are Closing Costs in North Carolina for Refinance?
Refinancing closing costs are the sum of several expenses paid against any services that were used in the process of underwriting and closing on your mortgage loan, which makes up 3%-5% of the mortgage amount.
The closing cost for refinancing would vary with respect to the property’s location. Overall, North Carolina mortgage closing costs are the highest in the nation.
Junk Closing Costs to Watch Out For
Junk costs are the additional costs that are imposed by the mortgage lender. These are usually excessive but can be challenged and negotiated for a fairer price. Some of these are:
- Application Fee: The buyer pays this fee to the lender when applying for the mortgage. Not all lenders charge an application fee.
- Loan Processing Fee: This fee is charged by the lender to execute the loan once it has been approved. Borrowers can negotiate for these charges to be waived.
- Mortgage Rate Lock Fee: This fee is a guarantee that the lender will honor the pre-agreed interest rate for a said amount for a set period.
- Underwriting Fee: Mortgage underwriters charge an underwriting fee to evaluate and verify loan applications. It is a non-recurring fee. Some lenders charge it in place of the originating fee, while others charge it in addition to the same.
- Courier Fee: A fee of $20-$50 is typically charged in order to cover the courier transactions.
Note: The costs vary by region.
Conclusion
The closing cost in North Carolina is the mandatory fee that needs to be paid by the seller & the buyer. This is paid over and above the mortgage loan amount. Where the buyer pays 2%-5% and the seller pays 6%-10% against their share of the closing cost.
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Houzeo’s customer-centric approach, advanced technology, and flat fee packages make it an ideal choice for those looking to avoid paying high commissions and closing costs.
» Houzeo Reviews: Check out Houzeo.com’s reviews before listing your house!
Find Your New Home With Houzeo
With thousands of property listings, Houzeo.com is one of the biggest property listing sites in the US. Find condos, townhouses, co-ops, and other types of homes for sale in North Carolina on Houzeo.
» Need More Clarity? Read these exclusive Houzeo reviews and learn why the platform is the best in America’s competitive housing market.
Frequently Asked Questions
1. How much are closing costs in North Carolina?
The closing cost in North Carolina for buyers are approximately 2%–5% of the home’s agreement value. While the sellers are expected to pay around 6–10% of the home’s purchase price. For sellers, that includes the agency commission too.
2. How much are closing costs in North Carolina for buyer?
The buyer closing costs are the charges paid by the buyer while acquiring the property ownership from the seller. These charges included several fees that need to be paid over and above the agreement amount and are negotiable too. Hence, you would need the best listing agent that would benefit you in this deal.
3. How much are closing costs in North Carolina for seller?
The seller closing costs are the charges paid by the seller while transferring the property ownership to the buyer. These charges included several fees that need to be paid over and above the agreed amount and are negotiable too. Hence, you would need the best listing agent that would benefit you in this deal.
Also Read
- Who Pays Closing Cost in North Carolina: Closing costs vary according to the type of real estate deal.
- Flat Fee MLS in North Carolina: You can save a significant amount in closing costs in North Carolina by listing your house on the MLS for a flat fee.
- Real Estate Purchase Agreement North Carolina: Check out how to create a contract for an FSBO transaction.
- How to Stop Foreclosure in North Carolina: Read the blog to know how to stop foreclosure in North Carolina.
- Who Pays for Lender’s Title Insurance in North Carolina: If you are taking a mortgage to buy a house, you will most likely have to purchase a lender’s title insurance.
- Selling a Home AS IS in North Carolina: Check out how you can sell your house as is in North Carolina.
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