North Carolina closing costs

Curious about closing costs in North Carolina? Expect to spend 2% to 4% of the home’s price if you’re buying in the Old North State

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First things first: Congrats on finding your dream home in North Carolina. Now, before crossing the finish line to make an offer, you should understand and plan for one often-overlooked expense: closing costs.

Closing costs are usually treated as an afterthought by homebuyers. But they can bring about unpleasant surprises if you don’t prepare for them. So, what are the closing costs like in North Carolina?

Buyers in North Carolina pay an average of 1.11% of a home’s price in closing costs; you can expect to spend about $3,406. That’s based on the average home price of $306,300 in North Carolina.

But this amount isn't set in stone. And by taking a few key steps, you can cut down your closing costs to get the best possible deal on your home purchase in North Carolina. Let's get you there.

Short on time? Here are the key takeaways

The average closing costs in North Carolina are 2% to 4% of the home's purchase price.

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Closing costs in North Carolina are a combination of different expenses, including appraisal fees, homeowners insurance and escrow payments, among others.

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You can cut down your closing costs in several ways, including researching better deals, negotiating with sellers and opting for a no-closing-cost mortgage.

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What are closing costs in North Carolina?

Always request a detailed estimate of closing costs from your lender. This gives you a chance to review charges, ask questions and, if needed, negotiate before the closing date.

Closing costs are fees and expenses that lurk beneath the surface of the listed price when buying a home. They include the cost of services like appraisals, legal fees, credit reports, title insurance, property taxes and more.

Many homebuyers in North Carolina often assume that the listing price is all that matters when making their purchase. But the closing costs that follow can be an unwelcome surprise.

These costs can easily run into thousands of dollars, so it’s important to budget for them.

Closing costs in North Carolina that buyers are responsible for

Personally shopping for services like home inspections, surveys and title searches can potentially save you money on closing costs. Be sure to compare prices and reviews before making your decision.

As a homebuyer in North Carolina, you’ll have to shoulder various expenses besides the listing price as part of your closing costs. While not all these costs may apply to your specific transaction, they're certainly worth preparing for.

Here's a breakdown of typical costs you'll come across:

  • Escrow fees: These are fees associated with the transfer of funds and documents between the buyer, seller and other relevant parties.
  • Loan application fees: Some lenders charge an application fee to process a loan request. In North Carolina, buyers can expect loan application fees of $150-$500.
  • Recording fees: Buyers may be charged a fee from the local recording office in North Carolina. This fee makes your home purchase official with the local authorities.
  • Origination fees: These are the costs of processing and underwriting your loan. They’re often a percentage of the total loan amount.
  • Property taxes: Buyers may foot part of the property tax bills at closing, depending on the sale terms and the time of year.
  • Title insurance fee: Buyers typically bear the costs for both the lender's and the owner's title insurance. In North Carolina, you can expect a title insurance fee of $0.60-$2.50 per $1,000.
  • Home inspection expenses: Home inspection fees in North Carolina range between $300-$500. And though these inspections are optional, they're highly recommended for buyers to avoid surprises.
  • Prepaid expenses: Bills like mortgage interest, homeowners insurance and property taxes typically require an upfront payment from buyers.
  • Real estate appraisals: Lenders often require an independent assessment of the property's value, and buyers typically foot the bill.

It's important to understand and assess all potential closing costs before finalizing your property purchase in North Carolina. Your real estate agent and lender can offer more insights to help you manage these costs for the best outcomes.

Does the buyer or seller pay for closing costs in North Carolina?

The closing costs division between buyers and sellers is often negotiable in North Carolina. It’s influenced by factors like market dynamics, local norms and the terms of the deal.

Typically, sellers in North Carolina bear costs like agent commissions, title transfer fees, home warranty costs and any outstanding liens on the property. That said, the exact allocation of costs depends on negotiation outcomes between buyers and sellers.

From August 2024 onward, real estate commissions (that are traditionally fixed) could become more negotiable, meaning better prices for both buyers and sellers.

» MORE: How much should you put down on a house?

How much are closing costs in North Carolina?

As we’ve established, total closing costs in North Carolina are an average of 1.11% of the home’s price. Before finalizing your property deal during closing, you'll receive an itemized list of closing costs.

That said, let's unpack each individual cost to help clarify what to expect in the Old North State:

*According to a 2023 survey by the National Association of Realtors

» GUIDE: Closing costs: average cost + how to calculate

How to save on closing costs in North Carolina

In any home purchase, every penny you save counts. And with closing costs amounting to thousands of dollars, even a 5% reduction goes a long way.

To ease the strain on your wallets, here are a few ways to cut down your closing costs when buying a home in North Carolina:

  • Thoroughly search for the best deals: Escrow agents and title companies typically compete in terms of pricing, so it’s smart to shop around for the best prices when it comes to these aspects of closing costs. This may require a little extra effort on your part, but it definitely pays off.
  • Pay keen attention to the Loan Estimate: The Loan Estimate is a breakdown of all costs associated with the loan. Carefully review it and don't hesitate to question charges that seem unreasonable or irrelevant. You'd be surprised by how much you can save by being proactive.
  • Negotiate with the seller: In a buyer’s market, buyers have more negotiating power. This means sellers are more likely to take on additional closing costs with a little push.
  • Consider a no-closing-cost mortgage: A no-closing-cost mortgage is one where the closing costs are included in the loan amount or handled by the lender. While lenders may charge a slightly higher interest rate, this option is a great way to lessen your upfront closing costs.

Want to learn more about cutting down closing costs? Check out our full guide on closing costs to approach your home purchase with confidence.

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    What are the closing costs in North Carolina?

    Closing costs for buyers in North Carolina are 1.11% of the home’s purchase price on average. Buyers generally pay around $3,406, including taxes.

    Are closing costs in North Carolina higher than in other states?

    No, closing costs in North Carolina tend to be lower than the national average of 1.81%.

    What is the typical amount a seller can expect to pay in closing costs in North Carolina?

    On average, sellers in North Carolina cover approximately 2.74% of the closing costs. This percentage varies based on whether it's a buyer’s or seller’s market.

    When are closing costs paid in North Carolina?

    Closing costs in North Carolina are typically settled on the property’s closing day, also known as the settlement day. Buyers are expected to provide their portion of the costs during the closing process. This may include fees for various services and expenses incurred during the real estate deal.

    Bottom line

    Closing costs in North Carolina can feel like a tough pill to swallow. But knowledge is power, and understanding what to expect with these expenses is the first step to managing them effectively.

    By learning all about closing costs in North Carolina and budgeting accordingly, you can approach your closing confidently, reduce financial strain and finalize your new home purchase with peace of mind.

    Article sources

    ConsumerAffairs writers primarily rely on government data, industry experts, and original research from other reputable publications to inform their work. Specific sources for this article include:

    1. CoreLogic, “Average Closing Costs for Purchase Mortgages Increased 13.4% in 2021, CoreLogic’s ClosingCorp Reports.” Accessed June 24, 2024. 
    2. National Association of Realtors, “Appraisal Survey.” Accessed June 24, 2024.
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