Understanding Closing Costs in Charlotte: What Buyers and Sellers Need to Know

When it comes to buying or selling a home in Charlotte, closing costs can often feel like a mystery. But understanding what’s included—and who’s responsible—can help you plan confidently and avoid surprises on closing day.

What Are Closing Costs?

Closing costs are the expenses beyond the agreed-upon purchase price that both buyers and sellers must pay to complete a real estate transaction. These fees typically cover a range of professional services required to finalize the deal, and they vary depending on your role in the transaction.

Closing Costs for Buyers in Charlotte

For buyers, closing costs usually range from 2% to 5% of the home’s purchase price. These fees may include:

• Lender charges: Loan origination, application, underwriting, and appraisal fees

• Title-related expenses: Title search, lender’s title insurance, and recording fees

• Escrow and prepaid items: Initial deposits for property taxes and homeowners insurance, as well as prepaid interest

• Additional costs: Home inspection, survey, and potential HOA transfer fees

Buyers will receive a Loan Estimate from their lender within three business days of applying for a mortgage. This document provides a detailed breakdown of anticipated costs and is a valuable tool for asking questions and planning ahead.

Want to better understand what to expect as a buyer? Check out our Home Buying Guide for a step-by-step overview.

Closing Costs for Sellers in Charlotte

Sellers also incur closing costs—typically around 2.74% of the home’s sale price, not including real estate commissions, which average another 5.47% in Charlotte. Common seller costs include:

• North Carolina excise tax

• Owner’s title insurance (typically provided for the buyer)

• Recording fees to clear the title

• Prorated property taxes and HOA dues through the closing date

• Attorney fees and possible buyer concessions, depending on the negotiated contract

Discussing potential costs with your real estate agent early on can help you understand your net proceeds from the sale and avoid last-minute surprises.

Looking to sell your home in Charlotte? Our Home Selling Resources can guide you through the process.

Plan Ahead for a Smooth Closing

Whether you're buying or selling, closing costs in Charlotte are an important part of the financial picture. Knowing what to expect—and budgeting accordingly—can make for a more confident and stress-free transaction.

Need expert guidance? The Fagan Realty Group is here to walk you through every step of the closing process. Contact us today to get started.