Are you trying to figure out which closing costs are yours in a Virginia Beach sale or purchase? You are not alone. Between lender fees, title charges, and taxes, the list can feel long. This guide breaks down who typically pays what, what is negotiable, and smart ways to estimate and reduce your costs. Let’s dive in.
What closing costs include
Closing costs are the expenses needed to transfer the property and fund a loan. They can include lender charges, title services and insurance, recording and transfer fees, inspections, and prorated items like taxes and HOA dues. In Virginia Beach, who pays each line often follows local custom and state rules, but many items are negotiable.
Who pays what in Virginia Beach
Buyer-typical costs
- Loan origination or points, underwriting, and credit report fees.
- Appraisal fee required by the lender.
- Lender’s title insurance policy and typical title/settlement charges.
- Escrow deposits for taxes and homeowner’s insurance, plus prepaid interest.
- Home inspection and any specialty inspections.
- Survey if required by the lender.
- Recording fees for the mortgage and usually the deed.
- HOA transfer or application fees if applicable, as negotiated.
Seller-typical costs
- Real estate commissions, which are commonly about 5%–6% of the sale price as of 2025.
- Payoff of existing mortgage(s) and related release fees.
- Prorated property taxes and HOA dues through the closing date.
- Owner’s title insurance policy in some Tidewater transactions, though local custom varies and this is negotiable.
- Transfer and recordation taxes or deed-related fees depending on local practice.
- Seller concessions or repair credits agreed to in the contract.
- Any seller-side document preparation or attorney fees if used.
What is negotiable
- Owner’s title insurance policy. Custom varies across Virginia and the Tidewater area. In many cases the seller pays, but it is negotiable.
- Settlement or closing fee. Some title companies charge each party, others split it.
- HOA transfer and resale-package fees. Allocation depends on contract terms.
- Recording fees for the deed can be split or assigned in negotiations.
- Seller concessions toward buyer costs, subject to loan-program limits.
Loan program rules that matter
Different loan programs cap how much a seller can contribute to buyer costs. Conventional, FHA, VA, and USDA loans all have specific limits and rules that can shape your negotiation. Some programs also include upfront mortgage insurance or funding fees that are paid at closing or financed. Ask your lender to confirm current contribution caps and any required escrow deposits for your exact loan.
For most mortgage loans, federal rules require a Loan Estimate within three business days of application, and a Closing Disclosure at least three business days before closing. Use these documents to confirm final amounts and timing.
Estimate your costs quickly
- Buyer rule of thumb: about 2%–5% of the purchase price, excluding the down payment. Expect the lower end with no points and minimal prepaids, and the higher end if you pay points, fund a larger escrow, or order multiple inspections.
- Seller rule of thumb: about 6%–10% of the sale price when including commission. Without commission, seller closing charges are often much smaller and shaped by payoffs, prorations, and any concessions.
Quick example at $400,000
- Buyer estimate at 2%–4%: roughly $8,000–$16,000.
- Seller estimate with a 5.5% commission: about $22,000 in commission plus $2,000–$4,000 in other fees, or roughly $24,000–$26,000 total.
These are illustrative ranges. Actual figures depend on loan type, escrow requirements, tax timing, and negotiated terms.
Ways to lower your costs
- Compare Loan Estimates from more than one lender to find lower fees or rates.
- Ask for seller concessions within your loan’s contribution limits.
- Request that certain title or settlement fees be split.
- Time your closing date to manage prepaid interest and escrow deposits.
- Consider rate options that reduce points if cash to close is tight.
Local details to confirm in Virginia Beach
- Recording and deed-related fees are set by the City of Virginia Beach. Confirm current amounts and typical payer with the Clerk of the Circuit Court.
- Property taxes are prorated based on your closing date. Verify billing cycles with the Virginia Beach Treasurer or Commissioner of the Revenue.
- HOA and condo resale packages vary by association. Ask for the fee schedule and turnaround time early.
- Title practices vary by company. Contact a local title or settlement company to confirm fee splits and who usually pays the owner’s policy in your area of Virginia Beach.
Your next step
If you are buying or selling in Virginia Beach, you deserve clear numbers before you sign. Bring your questions, your Loan Estimate, and any HOA details, and we will map out your bottom line with local title and lender partners. For practical guidance tailored to your timeline and neighborhood, connect with Alison Mccarthy.
FAQs
Who pays the owner’s title policy in Virginia Beach?
- Local custom varies. In some Tidewater-area closings the seller pays for the owner’s policy, but it is negotiable. Confirm with your title company and agent.
Do buyers pay property taxes at a Virginia Beach closing?
- Buyers pay their share from the closing date forward. Taxes are prorated, so the seller covers the portion up to the day of closing.
Can a Virginia Beach seller cover a buyer’s closing costs?
- Yes. Sellers can offer concessions in the contract, subject to your loan program’s contribution limits. Your lender can confirm the cap.
When will I see my final closing costs for a mortgage?
- Your lender must provide a Closing Disclosure at least three business days before closing. Review it against your Loan Estimate and ask questions promptly.
What are typical buyer closing costs as of 2025?
- A common range is about 2%–5% of the purchase price, depending on loan type, points, prepaids, and title fees.
What are typical seller costs as of 2025?
- Including commission, seller costs often total about 6%–10% of the sale price. Excluding commission, seller charges are usually much smaller and depend on prorations and concessions.
