Are you trying to budget for closing day in Fairfax and not sure where the dollars go? You are not alone. Closing costs can feel opaque, and Virginia’s mix of state and regional fees adds extra layers. In this guide, you will learn who typically pays what in Northern Virginia, how local taxes and fees work, and how to estimate your cash to close or seller net. You will also get a simple checklist to verify your numbers with your lender and title company. Let’s dive in.
What closing costs cover in Fairfax
Closing costs are the expenses needed to transfer ownership and fund your loan. Many are percentage based, while others are fixed fees. In Northern Virginia, local custom influences who pays for certain items, so your contract and title company matter.
Buyer cost basics
- Buyers commonly pay about 2% to 4% of the purchase price in closing costs, not including the down payment.
- Typical items include loan origination and underwriting, appraisal, inspections, lender’s title insurance, recording the mortgage, prepaid interest, and initial escrow deposits for taxes and insurance.
- You also fund the first year of homeowners insurance or an escrow deposit with your lender.
Seller cost basics
- Sellers commonly pay about 6% to 10% of the sale price, although broker commissions make up a large share of that total.
- When you remove commissions, direct seller costs still include transfer-related taxes, owner’s title insurance where customary, deed prep and settlement charges, and any payoff or lien release fees.
- Sellers also handle prorations so the buyer is credited for expenses after the closing date.
Who pays what in Northern Virginia
Customs can vary by deal, but here is how costs are commonly allocated in Fairfax and nearby markets:
Buyer typically pays
- Loan-related fees: application, processing, underwriting, and any points.
- Appraisal and inspections you order.
- Lender’s title insurance policy and related title search fees.
- Recording the mortgage.
- Prepaid interest, homeowners insurance, and initial escrow deposits for taxes and insurance.
Seller typically pays
- Broker commissions agreed to in the listing agreement.
- Virginia grantor’s tax, often referred to as the transfer tax, unless negotiated otherwise in the contract.
- Owner’s title insurance policy for the buyer, which is a common Northern Virginia custom.
- Deed preparation and select settlement charges.
- Payoff of mortgage(s) and lien release fees.
- Prorations to credit the buyer for taxes, HOA dues, or other prepaid items after the closing date.
Virginia and Fairfax taxes and fees
Rates and rules can change, and some fees include regional components. Your title company will calculate exact amounts on your Closing Disclosure or settlement statement. Here is what to know.
Grantor’s tax explained
- What it is: a tax on the transfer of real property in Virginia, calculated from the sale price.
- Who pays: the seller typically pays this tax by custom in Fairfax and throughout much of Virginia, but your purchase agreement can shift it.
- How it is computed: it is based on the consideration stated in the deed and may include state and local components. Confirm the exact rate for your transaction with your title company or relevant government offices.
Recordation taxes and recording fees
- What it is: fees for recording the deed and mortgage with the county clerk or recorder.
- Who pays: recording the mortgage is typically a buyer expense. Recording the deed can be allocated by contract.
- What to do: your title company will provide the accurate fee schedule for your closing.
Regional congestion relief fee
- What it is: certain Northern Virginia transportation initiatives may use regional surcharges collected at closing.
- Who pays: it depends on current rules and local practice. If a surcharge applies to your transfer or recordation, your title company will include it and show who pays.
- How to confirm: ask your settlement agent to verify whether any regional fee applies to your transaction.
HOA and condo estoppel fees
- Many Fairfax associations charge a resale package or estoppel fee that confirms account status and community rules.
- Amounts vary by association and can range from about $100 to $400 or more.
- Your contract should state who pays, and your agent or title company can request the exact quote early.
Title insurance norms
- In Northern Virginia, it is common for the seller to pay for the owner’s title insurance policy that protects the buyer. The buyer typically pays for the lender’s title policy.
- Owner’s title premiums are tied to the purchase price and can be a noticeable seller expense.
- Confirm actual premiums with your title company for your price point.
Property tax proration
- Fairfax County real estate taxes are prorated at closing.
- The seller usually pays taxes through the day of settlement, and the buyer covers the period that follows.
- Proration affects both the buyer’s cash to close and the seller’s net.
Estimate your bottom line
Use these simple methods to get close, then verify with your lender and title company.
Buyer cash to close formula
Buyer cash needed at closing = down payment + buyer closing costs + prepaid items and escrow deposits + any prorations owed to the seller ± seller credits negotiated.
Include these common line items:
- Down payment minus your earnest money credit.
- Loan fees, points, and appraisal.
- Inspections you choose to order.
- Lender’s title insurance and mortgage recording.
- Prepaid interest, first-year homeowners insurance or escrow deposit, and initial tax reserves.
- HOA/condo transfer or estoppel fees if assigned to buyer.
Seller net proceeds formula
Seller net proceeds = sale price − mortgage payoff(s) − seller closing costs − prorations owed to buyer ± credits granted in the contract.
Include these common line items:
- Broker commission(s) per your listing agreement.
- Grantor’s tax and any applicable regional or local surcharges.
- Owner’s title insurance premium if customary in your deal.
- Deed prep and settlement fees.
- HOA estoppel fees if assigned to seller.
- Mortgage payoff and any reconveyance or release fees.
Hypothetical examples
These examples are for illustration only. Your lender and title company will provide exact figures for your home.
Buyer on a $700,000 purchase:
- Down payment at 20%: $140,000
- Buyer closing costs at 2.5%: $17,500
- Prepaids and escrow deposits: $4,000
- Estimated total cash to close: about $161,500 minus any earnest money credit
Seller on a $700,000 sale:
- Commission at 6%: $42,000
- Grantor’s tax and local fees: several hundred to a few thousand dollars depending on current rates
- Owner’s title policy: can be a few thousand dollars based on price tier
- Plus mortgage payoff, deed and settlement fees, and prorations
- Estimated net proceeds: sale price minus the items above
Verify your numbers
Use this checklist to get accurate, current figures for your transaction in Fairfax:
- Request a Loan Estimate from your lender early, then compare it to your final Closing Disclosure.
- Ask your title or settlement company for a written estimate of title charges, title insurance premiums, recording fees, grantor’s tax, and any regional surcharges.
- Confirm who pays for the owner’s title policy in your contract.
- Obtain HOA or condo estoppel and transfer fee quotes as soon as you go under contract.
- Verify real estate tax projections and proration method with Fairfax County information and your title company.
- Put broker commission, seller concessions, and any repair credits in writing within the purchase agreement.
Ways to manage closing costs
You cannot change certain taxes and recording fees, but you can plan and negotiate other items.
- Ask your lender about rate-cost tradeoffs. A slightly higher rate may allow lender credits to offset some closing costs.
- Negotiate seller credits in your offer. Be mindful of lender limits on concessions.
- Time your closing date. A later-in-month closing can reduce prepaid interest for buyers.
- Compare lenders and lock when fees are favorable.
- Confirm who pays owner’s title insurance and HOA fees in the contract, since local custom can be flexible.
What to expect on settlement day
- Your title company coordinates final payoffs, records documents with Fairfax County, and disburses funds.
- Buyers bring a cashier’s check or wire for the cash to close. Sellers receive net proceeds by wire after funding.
- Keys are delivered once the transaction funds and records. Your title team will confirm timing.
If you want a calm, organized path to the finish line, you deserve an advisor who understands how Fairfax closings really work and who will run the numbers with you. If you are planning a move, reach out for a clear estimate and a step-by-step plan tailored to your goals. Connect with Gwak Homes to get started.
FAQs
Who pays the Virginia grantor’s tax in Fairfax?
- Customarily the seller pays the grantor’s tax, but your contract can allocate it differently. Your settlement agent will confirm for your specific deal.
What is the regional congestion relief fee in Northern Virginia?
- Some transportation initiatives use regional surcharges collected at closing. Whether it applies and who pays depends on current rules, which your title company will list if relevant.
Who pays for title insurance in Northern Virginia?
- It is common for the seller to pay for the owner’s title policy while the buyer pays the lender’s policy, but confirm the allocation in your contract.
How do I estimate my cash to close as a buyer?
- Add your down payment, buyer closing costs, and prepaids or escrow deposits, then subtract any seller credits. Your lender and title company will provide exact figures.
Can closing costs be financed into the mortgage?
- Some lender fees and prepaids can be financed depending on the program, but many costs must be paid at closing or covered by negotiated seller credits. Check with your lender.
