How much are closing costs for a buyer?
Closing costs usually run 2% to 5% of the purchase price, separate from your down payment. Here is what they include, why they vary by state, and how a rebate can offset them.
The short answer
For a buyer, closing costs usually run 2% to 5% of the purchase price. On a $400,000 home that is about $8,000 to $20,000, and it is separate from your down payment. The national average lands in the mid four figures, but where you buy matters a great deal.
What buyer closing costs include
Closing costs are a bundle of one-time fees due at the settlement table. The common ones are:
- Loan and lender fees, such as origination (often 0% to 1.5% of the loan), plus an appraisal ($400 to $700) and a credit-report fee.
- Title and settlement, including the lender's title insurance policy ($500 to $3,500), a title search, escrow or settlement fees, and, in some states, an attorney.
- Government fees, mainly recording fees and, in many places, a transfer tax.
- Prepaids, meaning the property taxes, homeowners insurance, and interest you pay in advance and set aside in an escrow account.
Why the total varies so much by state
The single biggest reason two buyers pay very different closing costs is transfer taxes, which states, and sometimes counties and cities, charge on the sale. Some states run high while several charge little or none. Title insurance and escrow customs also differ by region.
How a rebate can offset them
Here is the part most buyers miss. In states where buyer rebates are allowed, your agent can hand back part of their commission as a credit toward your closing costs at closing. That can erase a meaningful share of the bill. It is the same money either way; a rebate just routes some of it back to you.
See what a rebate is worth in your state →
Frequently asked questions
How much are closing costs for a buyer?
Buyer closing costs typically run 2% to 5% of the purchase price, roughly $8,000 to $20,000 on a $400,000 home, on top of your down payment.
What do buyer closing costs include?
Lender or origination fees, an appraisal, title insurance, escrow and settlement fees, recording fees and transfer taxes, and prepaid property taxes and homeowners insurance.
Can a buyer rebate cover closing costs?
Often yes. In states where rebates are allowed, your agent can apply the rebate as a credit toward your closing costs at the settlement table.
← All research & guidesFigures are typical 2026 ranges and vary by state, lender, and loan. This is general information, not financial advice; confirm your numbers with your lender and closing agent.