Closing costs in DC, Maryland, and Virginia can vary significantly. This guide breaks down what buyers and sellers should expect to pay at the settlement table in the DMV.
Closing Costs Catch People Off Guard
You've got your down payment. You've been pre-approved. You think you know what you're spending.
Then you get your Closing Disclosure and there's $12,000 in costs you weren't fully prepared for.
This happens every week in the DMV. Closing costs in DC, Maryland, and Virginia vary significantly — both in amount and in who typically pays what. Here's the breakdown you need.
| Virginia | Maryland | DC | |
|---|---|---|---|
| Buyer closing costs | 2–3% | 3–5% | 3.5–5%+ |
| Seller closing costs | 1–3% | 1–2% | 1.5–2.5% |
| Transfer tax burden | Seller (Grantor's tax) | Split buyer/seller | Split buyer/seller |
| First-time buyer exemption? | ❌ No | ✅ Partial state tax | ✅ Recordation tax exempt |
| Highest cost item | Lender fees | Transfer + recordation taxes | Transfer taxes (1.1–1.45% each side) |
Virginia Closing Costs
For buyers in Virginia, typical closing costs run 2–3% of the purchase price. On a $600,000 home, that's $12,000–$18,000.
ℹ️ What Virginia Buyers Pay at Closing
- —Lender fees (origination, underwriting, appraisal, credit report)
- —Prepaid items (homeowners insurance, prepaid interest, initial escrow deposit)
- —Title charges (owner's title insurance, lender's title insurance, settlement fee)
- —Government fees (recording fees ~$25–$50/document)
- —Grantor's tax ($0.10 per $100 of value — typically paid by seller)
For sellers in Virginia, closing costs typically run 1–3% for title/transfer costs (plus real estate commission).
Maryland Closing Costs
Maryland is known for having some of the highest transfer taxes in the region.
ℹ️ Maryland Closing Cost Breakdown
State transfer tax: 0.5% of purchase price (first-time buyers get a partial exemption). County transfer tax: Varies — Montgomery County 1%, Prince George's County 1.4%, others vary. Recordation tax: $6.90–$10 per $1,000 depending on county. On a $700K home in Montgomery County: combined state + county transfer taxes ≈ $10,500 before recordation.
💡 Maryland First-Time Buyer Exemption
Maryland offers a partial state transfer tax exemption for first-time homebuyers — you pay 0.25% instead of 0.5%. Some counties offer additional exemptions. Ask your title company to confirm eligibility before closing.
DC Closing Costs
DC has the highest transfer taxes in the DMV — and they apply to both buyer and seller.
⚠️ DC Has the Highest Transfer Taxes in the DMV
DC transfer tax (buyer pays): 1.1% on purchases under $400K; 1.45% above $400K. DC recordation tax (seller pays): same rates. On a $900K DC condo, buyer and seller are each paying roughly $13,000 in transfer/recordation taxes alone — before any lender or title fees. First-time DC buyers are exempt from the recordation tax on their side if purchase price is under $400K.
Negotiating Seller Concessions
In all three jurisdictions, buyers can negotiate seller concessions — a credit at closing that offsets closing costs.
This is especially common when:
💡 When Seller Concessions Work in Your Favor
Seller concessions are most effective when: the market has slowing inventory (longer DOM), you're using FHA or VA financing, or the seller needs a quick close. Concessions are capped by loan type: FHA allows up to 6%, VA up to 4%, conventional loans 2–9% depending on down payment.
How to Prepare
✅ 3 Steps to Prepare for Closing Costs
1. Get a Loan Estimate early — your lender must provide one within 3 business days of application. 2. Ask your title company for a settlement estimate — a good title company provides a full breakdown before contract. 3. Budget conservatively: 3–5% of purchase price is the safe range across the DMV.
The DMV is an expensive market to buy in. Understanding your closing costs before you make an offer makes the whole process less stressful — and helps you negotiate smarter.
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Pruitt Title serves buyers, sellers, and lenders across Virginia, Maryland, and Washington, DC. We make closing simple.
