Closing costs are fees paid when property ownership transfers. They average 2–5% of the purchase price, separate from the down payment. Always budget for both when saving to buy a home.
How much are closing costs?
Typically 2–5% of the purchase price. On a $400k home: $8,000–$20,000 in addition to the down payment.
Can sellers pay closing costs?
Yes — seller concessions of 2–3% are common in buyer's markets and can be negotiated into the offer.