Buying or selling a home in Wilmington comes with more than the price on the contract. Closing costs can surprise you if you have not seen a detailed estimate. You want a clear, local guide so you can plan your budget and avoid last‑minute stress. In this post, you will learn who typically pays what, what ranges to expect, and how to estimate your own numbers for New Hanover County. Let’s dive in.
Buyer closing costs: what to expect
Buyer costs usually fall into three buckets: loan charges, third‑party and title fees, and prepaids and escrows. If you are financing, most costs relate to your loan and your escrow setup.
Loan and lender charges
- Origination or application fee: often 0.0% to 1.0% of the loan amount or a flat fee.
- Processing and underwriting: typically $300 to $1,000.
- Discount points (optional): 1 point equals 1% of the loan amount and can buy down your rate.
- Appraisal: about $400 to $800 depending on the property.
- Credit report: about $25 to $50.
- Flood certification: about $20 to $50.
- Survey if required: roughly $300 to $900.
Title and settlement fees
- Lender’s title insurance: usually paid by the buyer when there is a mortgage.
- Owner’s title insurance: protects you. Who pays varies by local custom and negotiation.
- Settlement or closing attorney fee: commonly $300 to $1,000, depending on the provider.
- Recording of mortgage documents: small county fees that vary by document.
Prepaids and escrow deposits
- Property taxes and homeowner’s insurance: prorated based on the closing date and local tax calendar.
- Initial escrow deposit: often 2 to 6 months of taxes and insurance, depending on lender rules.
- HOA dues or transfer fees: prorated and subject to your community’s rules.
Inspections and contingencies
- General home inspection: about $300 to $700.
- Pest or termite inspection: about $75 to $200.
- Specialty inspections (septic, roof, plumbing, electric): variable based on need.
Government and recording fees
- Recording fees for deed and mortgage: county‑set fees that vary by document. Check the current schedule before closing.
What buyers typically spend
- Plan for about 2%–5% of the purchase price in closing costs, not including your down payment. Your exact number depends on your loan type, prepaid escrows, and any seller credits you negotiate.
Seller closing costs: what to expect
Sellers face fewer line items, but one large cost. Your biggest expense is usually the real estate commission.
Common seller line items
- Realtor commissions: often about 5%–6% of the sale price in many markets, typically split between the listing and buyer brokerages. Local rates and splits vary by agreement.
- Title‑related costs: owner’s title insurance may be paid by the seller or buyer depending on local custom and negotiation. Sellers also pay to clear title issues and record necessary releases.
- Prorations: property taxes and HOA dues are split based on the closing date and the billing period.
- Mortgage payoff(s): your existing loan balance, plus any accrued interest and recording or reconveyance fees.
- Transfer or recording fees: confirm any state or county transfer charges and who customarily pays them.
- Concessions or credits: any negotiated credit to the buyer for closing costs or repairs reduces your net proceeds.
What sellers typically spend
- With commission included, total seller costs often land around 6%–10% of the sale price. Your payoff, concessions, and local fee allocations will change this number.
Wilmington and New Hanover specifics
Wilmington has a few local factors that can influence your closing costs and timing.
- Flood zones and insurance: Coastal proximity increases the chance your property may be in a flood zone. If you have a mortgage and the property is in a high‑risk zone, your lender may require flood insurance. Premiums and escrow deposits can raise your cash to close.
- HOA and condo fees: Many coastal and condo communities have transfer or estoppel fees, plus capital contributions at purchase. Ask for these early.
- Title and attorney practice: In North Carolina, closings often involve a closing attorney. Who pays for the owner’s title policy or settlement fees can vary by local custom. Clarify this when you write your offer or list your home.
- Recording fees and deed requirements: The New Hanover County Register of Deeds sets document rules and fees. Confirm the current schedule so you know what will appear on your settlement statement.
- Property tax calendar: Your prorations depend on the county’s billing cycle and whether taxes are paid in arrears or advance. The New Hanover County Tax Office can confirm current dates.
- Septic or well systems: Some properties outside municipal services may need septic inspections, permits, or certifications. Budget for testing or repairs if applicable.
How to estimate your numbers
Use these simple templates to get a quick estimate. Your lender and closing attorney will provide exact figures.
Buyer cash to close
- Down payment: purchase price times your down payment percentage.
- Plus buyer closing costs: estimate 2%–5% of purchase price.
- Plus prepaids and escrow deposits: first year of insurance and initial escrows set by the lender.
- Less seller credits: any negotiated closing cost help.
- Equals cash needed at closing, minus any earnest money you already paid.
Seller net proceeds
- Sale price
- Less commissions: often 5%–6% of sale price, per your listing agreement.
- Less mortgage payoff(s): principal, interest to payoff date, and any fees.
- Less prorations: property taxes and HOA dues based on closing date.
- Less seller closing fees: title work, recording, deed prep, and any transfer charges.
- Less concessions: credits to buyer for costs or repairs.
- Equals estimated net proceeds.
Hypothetical example (for illustration only)
On a $350,000 purchase:
- Buyer with 5% down pays $17,500 down payment.
- Closing costs at 3% are about $10,500.
- Prepaids and escrow deposits of about $3,000.
- Estimated cash to close is about $31,000, minus any earnest money already paid.
For a $350,000 sale:
- Commission at 6% is $21,000.
- Other seller fees might be $5,000 to $10,000 depending on payoff, prorations, and title work.
- Estimated net before mortgage payoff is roughly $321,500 if other seller fees land near the middle of that range.
Actual figures will vary by property, loan type, and negotiation. Review your Loan Estimate early and compare it to your Closing Disclosure to confirm changes before you sign.
Ways to reduce your cash to close
- Ask for seller credits: Concessions can cover part of your closing costs, subject to loan program limits.
- Consider lender credits: A slightly higher rate can lower upfront fees.
- Time your closing date: Closing near a tax or HOA billing cutoff can change prorations.
- Shop services: You can often choose your homeowner’s insurance provider and some third‑party services.
- Compare loan options: Different programs have different fee structures. FHA, VA, and conventional loans allocate costs in different ways.
What to review before closing
- Loan Estimate: Provided within three business days of your loan application, it outlines your projected costs.
- Closing Disclosure: Delivered at least three business days before closing. Check for updates to fees, taxes, and escrows.
- Settlement statement: Buyers and sellers should confirm prorations, payoffs, and recording fees with the closing attorney or title company.
Ready to run your numbers?
If you want a custom buyer estimate or a seller net sheet for your Wilmington property, reach out. You will get a clear breakdown, local fee expectations, and next steps tailored to your plan. Connect with Alexis Allen to get started today.
FAQs
How much cash to close will I need as a first‑time buyer in Wilmington?
- Many buyers spend about 2%–5% of the purchase price in closing costs, plus the down payment and initial escrow deposits, with exact numbers set by your lender and contract terms.
Who usually pays real estate commission in New Hanover County home sales?
- The seller commonly pays the commission, and total rates are often around 5%–6% of the sale price, with splits set by the listing agreement.
Can a seller in Wilmington pay my closing costs?
- Yes, seller concessions are negotiated in the contract and can cover some buyer costs, subject to the rules of your loan program.
Do I need to buy title insurance as a buyer?
- Lenders usually require a lender’s title policy when you finance; the owner’s policy is optional but recommended, and who pays is often based on local custom and negotiation.
How do property tax prorations work at closing in New Hanover County?
- Taxes are split based on the closing date and the county’s billing cycle so each party pays for the period they own the home; your settlement statement will show the exact proration.
Are there transfer or excise taxes when selling a home in North Carolina?
- Some jurisdictions charge transfer taxes; confirm current state or county charges and who pays them with your closing attorney or the county before you finalize your budget.
