Who Pays Closing Costs in DC? A 2026 Breakdown
Closing costs in Washington DC are typically split between buyers and sellers, but the specifics can vary based on negotiations and local customs.
Local insight
DC has some of the highest closing costs in the nation. The combined recordation and transfer taxes reach 2.9% for properties over $400,000—typically split 50/50 between buyer and seller by custom.
Buyer Responsibilities in DC
DC buyers typically pay 3% to 5% of the purchase price in closing costs, in addition to their down payment. Here's what buyers are responsible for:
- Loan Origination Fees: Charged by the lender for processing the mortgage, typically 0.5%-1% of the loan amount.
- Title Insurance: Protects the buyer and lender from title disputes. Buyers usually pay for the lender's title insurance policy.
- Appraisal Fees: Required by lenders to assess the home's value, usually $400-$600.
- Home Inspection Fees: Optional but recommended, costing $400-$600.
- Prepaid Expenses: Includes property taxes, homeowners insurance, and prepaid interest from closing date to end of the month.
- Recording Fees: Fees to record the deed and mortgage with DC authorities.
- DC Recordation Tax: 1.1% of purchase price (properties under $400K) or 1.45% (properties over $400K) — typically split 50/50.
- DC Transfer Tax: 1.1% of purchase price (properties under $400K) or 1.45% (properties over $400K) — typically split 50/50.
Seller Responsibilities in DC
DC sellers typically pay 1% to 3% of the sale price in closing costs (excluding real estate commissions). Here's what sellers are responsible for:
- Real Estate Agent Commissions: Typically 5-6% of the sale price, split between the buyer's and seller's agents.
- DC Transfer Tax: 1.1% of purchase price (properties under $400K) or 1.45% (properties over $400K) — typically split 50/50 with buyer.
- DC Recordation Tax: 1.1% of purchase price (properties under $400K) or 1.45% (properties over $400K) — typically split 50/50 with buyer.
- Title Insurance for Buyer: Sellers often pay for the owner's title insurance policy as a concession.
- Prorated Property Taxes: Property taxes from January 1 to the closing date.
- Outstanding Liens: Any liens on the property must be paid at closing.
- Condo/Co-op Fees: Any outstanding monthly fees or special assessments.
DC Tax Rates: Who Pays What
| Tax Type | Properties under $400K | Properties over $400K | Typically Paid By |
|---|---|---|---|
| Recordation Tax | 1.1% | 1.45% | Split 50/50 |
| Transfer Tax | 1.1% | 1.45% | Split 50/50 |
| Combined Total | 2.2% | 2.9% | Buyer & Seller |
Example: On a $600,000 home (over $400K), the combined taxes are 2.9% or $17,400. Split 50/50, each party pays $8,700.
Can Closing Costs Be Negotiated?
Yes! While there's a customary 50/50 split for recordation and transfer taxes, buyers and sellers can negotiate who pays other fees:
- Title Insurance: Who pays can be negotiated (traditionally split or paid by seller as concession)
- Inspection Repairs: Sellers may agree to credit buyers for repair costs
- Attorney Fees: Can be split or paid by either party
- Home Warranty: Often paid by seller as part of the sale
In a competitive market, sellers may offer to pay more closing costs to attract buyers. In a buyer's market, buyers may request seller concessions.
Frequently Asked Questions
Can closing costs be negotiated in DC?
Yes, buyers and sellers can negotiate who pays certain fees, such as transfer taxes or inspection costs.
Are there any programs to help with closing costs in DC?
DC offers some assistance programs for first-time homebuyers, including grants for closing costs.
How much is the DC transfer tax?
The transfer tax is 1.1% of the sale price, typically split between buyer and seller.
When do I pay closing costs?
All closing costs are paid at the settlement table when the transaction is finalized.
Estimate Your DC Closing Costs
Contact Pruitt Title LLC for an accurate breakdown of what you'll pay or receive at closing in DC.