Closing Costs in Massachusetts? Key Insights for Buyers

In Massachusetts, closing costs for a median-priced $600,000 home are approximately 1.3%, or $7,800. However, prices can vary significantly across different markets within the state. Buyers should expect to pay between 2% and 5% of the purchase price for closing costs, not including the down payment. On the other hand, sellers’ closing costs are typically lower, ranging from 6% to 10% of the selling price. However, this includes realtor commissions, which can be a significant portion of the cost, usually 5% to 6% of the sale price.

Key Takeaways

  • Closing costs in Massachusetts typically range from 2% to 5% of the purchase price for buyers and 6% to 10% for sellers.
  • Buyers can expect to pay around $11,679 to $29,198 for a typical Massachusetts home priced at $583,964.
  • Sellers can expect to pay between $46,717 and $58,396, including realtor commissions, for a $583,964 home.
  • Closing costs can vary depending on factors such as location, home price, and the complexity of the transaction.

What Are Closing Costs in Massachusetts?

Closing costs are the various fees and expenses that buyers and sellers must pay to complete a real estate transaction in Massachusetts. These costs are in addition to the purchase price of the home and are typically paid at the closing table when the property ownership is transferred from the seller to the buyer.

Different Types of Closing Costs

For Home Buyers

Home buyers in Massachusetts can expect to pay several types of closing costs, including:

  • Origination fees
  • Appraisal fees
  • Title insurance
  • Property taxes
  • Homeowners insurance
  • Private Mortgage Insurance (PMI) if applicable
  • Recording fees

For Home Sellers

Home sellers in Massachusetts also have closing costs to pay, which may include:

  • Real estate agent commissions
  • Transfer taxes
  • Title insurance
  • Attorney fees
  • Property taxes
  • Mortgage payoff
  • Recording fees

Also read: How Much Are Closing Costs in Minnesota? Tips for Homebuyers

Who Pays Closing Costs in Massachusetts?

In Massachusetts, both buyers and sellers are responsible for paying certain closing costs. However, the specific costs each party pays can be negotiated as part of the purchase contract. In some cases, the seller may agree to pay a portion of the buyer’s closing costs to incentivize the sale.

Who Pays Closing Costs on FSBO in Massachusetts?

In a For Sale By Owner (FSBO) transaction in Massachusetts, the buyer and seller must negotiate and agree upon who pays which closing costs. Without a real estate agent involved, it’s essential for both parties to understand the various closing costs and work together to determine a fair split.

How Much Are Closing Costs in Massachusetts?

Closing costs in Massachusetts vary depending on the home price and the buyer’s or seller’s role. Buyers typically pay 2% to 5% of the purchase price, while sellers pay 6% to 10%, including realtor commissions. For a median-priced $600,000 home, closing costs are around $7,800 (1.3%), but can be higher in some markets. On a $583,964 home, buyers may pay $11,679 to $29,198, and sellers may pay $46,717 to $58,396, largely due to realtor commissions.

Home PriceAverage Closing Costs (1.3%)Buyer Closing Costs (2% – 5%)Seller Closing Costs (6% – 10%)
$200,000$2,600$4,000 – $10,000$12,000 – $20,000
$300,000$3,900$6,000 – $15,000$18,000 – $30,000
$400,000$5,200$8,000 – $20,000$24,000 – $40,000
$500,000$6,500$10,000 – $25,000$30,000 – $50,000
$600,000$7,800$12,000 – $30,000$36,000 – $60,000
$700,000$9,100$14,000 – $35,000$42,000 – $70,000
$800,000$10,400$16,000 – $40,000$48,000 – $80,000
$900,000$11,700$18,000 – $45,000$54,000 – $90,000
$1,000,000$13,000$20,000 – $50,000$60,000 – $100,000

How Much Are Closing Costs for Buyers in Massachusetts

Buyers can expect to pay around 2% to 5% of the purchase price for closing costs, not including the down payment. For a typical Massachusetts home priced at $583,964, this translates to roughly $11,679 to $29,198.

How Much Are Closing Costs for Sellers in Massachusetts

Sellers can expect to pay around 6% to 10% of the selling price for closing costs, including realtor commissions. For a $583,964 home, closing costs could be between $46,717 and $58,396, with a significant portion being realtor commissions (usually 5% to 6% of the sale price).

Also read: Closing Costs in Iowa: Planning for the Final Expenses

Factors impacting Closing Costs in Massachusetts

Several factors can impact the amount of closing costs in Massachusetts:

  • Home price
  • Location
  • Type of property
  • Mortgage type and lender
  • Real estate market conditions
  • Negotiation between buyer and seller

Tips for Reducing Closing Costs

  • Shop around for lenders and compare fees
  • Negotiate with the seller to split or cover certain costs
  • Schedule your closing for the end of the month to reduce prepaid interest
  • Ask for a breakdown of all fees and question any that seem unnecessary
  • Consider a no-closing-cost mortgage (but be aware of the potential trade-offs)

How to Avoid Paying Closing Costs When Buying a House

While it’s not always possible to avoid paying closing costs entirely, there are a few strategies that can help minimize your out-of-pocket expenses:

  • Negotiate with the seller to cover some or all of the closing costs
  • Look for lender-paid closing cost options (but be aware of the potential impact on your interest rate)
  • Apply for closing cost assistance programs, if eligible
  • Use a gift from a family member to cover closing costs

How to Calculate Closing Costs

To calculate your estimated closing costs, follow these steps:

  1. Determine the price of the home you’re buying or selling
  2. Multiply the price by the appropriate percentage range (2-5% for buyers, 6-10% for sellers)
  3. Add any additional fees specific to your situation (e.g., HOA fees, transfer taxes)
  4. Review the Loan Estimate or Closing Disclosure provided by your lender for a more precise breakdown of costs

Steps to Prepare for Closing

  1. Review and compare Loan Estimates from multiple lenders
  2. Schedule and attend home inspections and appraisals
  3. Obtain necessary insurance policies (homeowners, title, etc.)
  4. Review the Closing Disclosure and ask questions about any unclear fees
  5. Arrange for payment of closing costs (cashier’s check, wire transfer)
  6. Perform a final walk-through of the property
  7. Attend the closing and sign all necessary documents

Also read: Budgeting for Kansas Closing Costs: A Comprehensive Guide

How to Find a Trusted Real Estate Agent

A knowledgeable real estate agent can help guide you through the closing process and ensure a smooth transaction. To find a trusted agent:

  • Ask for referrals from friends, family, or colleagues
  • Research agents online and read reviews from past clients
  • Interview multiple agents and ask about their experience and expertise
  • Choose an agent who communicates well and understands your needs

Conclusion

In Massachusetts, buyers should expect to pay 2% to 5% of the purchase price for closing costs, not including the down payment. On the other hand, sellers typically pay 6% to 10% of the selling price, which includes realtor commissions. For a median-priced $600,000 home in Massachusetts, closing costs amount to approximately $7,800 (1.3 percent). However, it’s essential to note that closing costs can vary significantly depending on the specific market within the state.

Frequently Asked Question (FAQ)

Does the buyer pay closing costs in Massachusetts?

Yes, buyers in Massachusetts typically pay closing costs ranging from 2% to 5% of the purchase price, not including the down payment. For a home priced at $583,964, this translates to approximately $11,679 to $29,198 in closing costs for the buyer.

Who pays most closing costs?

In Massachusetts, both buyers and sellers pay closing costs, but sellers usually pay more due to realtor commissions. Sellers often pay 6% to 10% of the selling price, with 5% to 6% going towards realtor commissions. Buyers, on the other hand, typically pay 2% to 5% of the purchase price.

What is the average cost of housing in Massachusetts?

The average cost of housing in Massachusetts varies by location, but the typical home price in the state is around $583,964. In some markets, prices can be significantly higher or lower than this average.

Does the buyer pay closing costs in Massachusetts?

Yes, buyers in Massachusetts are responsible for paying closing costs, which typically range from 2% to 5% of the purchase price. These costs are in addition to the down payment and can include items such as origination fees, appraisal fees, title insurance, and property taxes.

How much does it cost to buy a house in Massachusetts?

The cost of buying a house in Massachusetts depends on the home price and closing costs. For a median-priced home of $600,000, buyers can expect to pay approximately $7,800 (1.3%) in closing costs. However, closing costs can range from 2% to 5% of the purchase price, depending on the specific situation.

Razib

Razib is a skilled writer with 5 years of experience specializing in technology, finance, automotive and real estate. A BBA graduate from 2014, Razib's passion for these industries shines through in his informative and engaging content. His ability to break down complex topics and stay current on the latest trends makes him a valuable resource for readers seeking to understand these dynamic fields.

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