Understanding Closing Costs: What Buyers & Sellers Should Know

Whether you're buying your first home or selling your third, closing day comes with one final surprise if you're not prepared: closing costs. These expenses can add up quickly and vary depending on the transaction, location, and deal terms. Let’s break down what buyers and sellers in Central PA need to know before they get to the closing table.

💸 What Are Closing Costs?

Closing costs are the fees and expenses associated with finalizing a real estate transaction. They’re separate from the home’s purchase price and can include lender fees, title services, taxes, and more.

Both buyers and sellers typically have their own set of costs to cover, although these can sometimes be negotiated during the offer process.

🏡 For Home Buyers: Typical Closing Costs

Buyers can expect to pay 2% to 5% of the purchase price in closing costs. Here's what that may include:

• Loan Origination Fees – Charged by the lender for processing the loan

• Appraisal Fee – Required by lenders to determine the home’s market value

• Home Inspection Fee – Paid to a licensed inspector to evaluate the property condition

• Title Insurance – Protects against future claims on the property title

• Attorney Fees – If applicable, depending on state or complexity

• Escrow Deposits – For property taxes and homeowners insurance

• Recording Fees – Paid to the local government for processing the deed

Pro Tip: In competitive markets, sellers are less likely to offer closing cost assistance—plan accordingly.

🏠 For Home Sellers: Typical Closing Costs

Sellers can expect to pay 6% to 10% of the sale price in closing costs, much of which is tied to commission and title work:

• Real Estate Commission – Typically a percentage of the sale price, often a full professional fee is split between the listing and buyer’s agent

• Title Transfer Fees – Covers transferring the title to the new owner

• Seller Concessions – If negotiated, this could include paying part of the buyer’s closing costs

• Outstanding HOA Dues or Taxes – Prorated at closing

• Attorney Fees – In certain transactions

Pro Tip: A well-priced and prepared home can reduce negotiation pressure and preserve your bottom line.

🤝 Can Closing Costs Be Negotiated?

Yes. In some cases, a buyer can negotiate for the seller to cover part (or all) of their closing costs—particularly in a buyer’s market. Conversely, sellers may offer closing cost assistance to sweeten the deal or speed up the transaction.

📊 How to Plan Ahead

• Ask for a Loan Estimate Early – Buyers should request this document from lenders to understand fees

• Get a Net Sheet – Sellers can request a breakdown from their agent to estimate proceeds after costs

• Review the Closing Disclosure – Both parties will receive this at least three days before settlement

🏡 Final Thoughts

Understanding closing costs upfront helps prevent surprises and ensures you can plan with confidence—whether you're buying your dream home or selling your longtime residence.

At TeamPete Realty Services, our experienced agents walk you through every detail of your transaction, including what to expect at the closing table. It’s just one more way we care more.

📝 Ready to make your move?

Let’s talk about how we can help you navigate closing costs and everything in between. Contact us today to get started.