How to Calculate Closing Costs When Paying Cash for a Home

By Motley Fool Staff – Updated Apr 23, 2025 at 12:12PM

Key Points

Closing costs vary by location and whether you're paying cash or financing.
Property inspections are worth their cost, possibly saving more in future repairs.
Negotiate with sellers on who pays specific fees, as practices vary by locale.
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Ben Franklin said that only death and taxes are certain, but closing costs surely had to come close to making that list. Depending on where you live, there are different items that may or may not fall on the list of closing costs.

Furthermore, closing costs can vary greatly depending on whether you're financing or paying cash for a home, as there are a number of mortgage-related costs that cash buyers can avoid altogether.

Two people smiling and holding a house key in a home with boxes.

Image source: Getty Images.

Common closing costs

Here's a list of common closing costs that cash buyers may be required to pay:

Appraisal.
Property inspection.
Title insurance.
Survey.
Escrow fees and bank transfer fees to fund escrow.
Notary.
Taxes, such as property tax.
Local, county, and state government fees.
Attorneys fees.
Homeowners insurance premium.

Many of these fees are fixed costs, such as home inspections, appraisals, and notary fees, while others, such as taxes, escrow, and insurance premiums, will be based on the property value or the selling price. Other fees, such as attorney's fees, can also vary, depending on location and the extent of the services the buyer requires.

Some of these fees may or may not apply, depending on your locale, including appraisals, inspections, and title insurance. But just because they aren't required (they're often only required by a lender, not any laws), that doesn't mean you should automatically skip them, particularly things like property inspections, which can end up saving you much more than their cost if you're not a seasoned property buyer.

Costs paid by the seller

The seller may be willing to pay some or all of these fees, and in many locales, it may be a normal practice for buyers and sellers to split certain costs. It's also important to note that your actual closing costs will vary from one locale to the next and that your real estate professional should be able to give you a list of costs for the property you're buying.

It pays to shop around

When it comes to things such as appraisal, survey, and property inspection, it's worth shopping around, just as you would with your insurance. You can save a few bucks here or there, but it's more important to consider the quality and reputation of the professional you hire as much as saving money. After all, paying a little more for a home inspector who catches a major problem before you pull the trigger is as good as money in the bank.