When buying or selling a home in Vermont, one of the most common questions is: How much will I pay in closing costs? These are the expenses due at the end of a real estate transaction, and they can significantly impact your bottom line as a buyer or seller.
At Flex Realty, we believe in helping our clients navigate the numbers with transparency. This guide breaks down the typical closing costs in Vermont, who pays what, and what you should plan for — whether you're buying your first home or preparing to sell your current one.
What Are Closing Costs?
Closing costs are all the fees and expenses — outside of the purchase price — that must be paid to finalize a real estate transaction. These costs typically include legal fees, taxes, lender charges, title services, and administrative costs.
In Vermont, both buyers and sellers have closing costs, although buyers generally carry more of the expense. Depending on the transaction, closing costs in Vermont typically range from 2% to 5% of the home’s sale price.
Buyer Closing Costs in Vermont
If you’re buying a home in Vermont, your closing costs can include several key components.
1. Vermont Property Transfer Tax
This is one of the largest buyer expenses. Vermont charges a property transfer tax when a home is sold, and buyers are typically responsible for paying it.
For primary residences, the first $100,000 is taxed at 0.5%, and the remaining balance is taxed at 1.25%.
If you're not planning to live in the home (like with a second home or investment property), the full amount is taxed at 1.45%.
For example, if you're buying a $350,000 home as a primary residence, your total property transfer tax would be $3,625.
2. Attorney Fees
In Vermont, real estate closings must be overseen by an attorney. Buyers typically hire an attorney to represent their interests during the transaction. The attorney ensures the title is clear, prepares closing documents, and coordinates with the lender.
Expect to pay between $900 and $1,500 for legal representation, depending on the complexity of the transaction.
3. Title Search and Title Insurance
A title search ensures there are no outstanding liens or legal issues with the property. Title insurance protects you and your lender in case any issues arise after closing.
This can cost between $700 and $1,200, depending on the value of the home.
4. Lender Fees and Loan Costs
- Loan origination fee (usually 0.5%–1% of the loan amount)
- Appraisal fee (often $500–$700 in Vermont)
- Credit report and underwriting fees
- Escrow setup for property taxes and insurance
Your lender will provide a Loan Estimate early in the process that outlines these costs.
5. Inspections and Testing
While not technically part of closing costs, inspections are a crucial part of your upfront expenses. In Vermont, many homes rely on wells, septic systems, or have radon exposure — so you may need multiple inspections.
General home inspection: $400–$600
Radon test: $100–$200
Water or septic testing: $200–$500
Seller Closing Costs in Vermont
Sellers typically pay fewer closing costs but often face the largest single expense: the real estate commission.
1. Realtor Commission
In Vermont, the seller usually pays the full real estate commission, which is split between the listing agent and the buyer’s agent. Traditional brokerages charge 5–6%, but at Flex Realty, we offer low commission listing options to help you keep more of your home’s equity.
For example, on a $400,000 home sale, a 6% commission would be $24,000 — a significant cost. Many sellers who work with Flex Realty save thousands while still receiving full-service support and marketing.
2. Attorney Fees
Sellers also typically hire an attorney to review the contract, prepare the deed, and oversee closing. Like buyers, sellers can expect to pay $900–$1,500, depending on the attorney and location.
3. Transfer of Deed and Recording Fees
There are small administrative costs involved with recording the deed and other legal documents. These fees are usually minor, around $100–$150, but should be included in your total estimate.
4. Repairs or Concessions
If inspection issues come up, you may agree to offer a seller credit or make repairs. These are negotiable and can add to your total out-of-pocket costs.
Tips for Planning Your Closing Costs
It’s a smart move to budget early and ask your real estate agent and lender for a full breakdown of your estimated costs. Here are a few tips:
Buyers: Get a Loan Estimate from your lender early and review your Closing Disclosure closely before settlement.
Sellers: Understand your net proceeds by subtracting closing costs and commissions from your expected sale price.
Ask about seller concessions: In some cases, sellers may agree to cover a portion of the buyer’s closing costs as part of negotiations.
Work with local experts: Attorneys, lenders, and inspectors who know Vermont’s regulations and quirks can save you time and money.
Need Help Understanding Your Closing Costs?
At Flex Realty, we’re here to make the buying and selling process as smooth and transparent as possible. Whether you're preparing to buy your first home or getting ready to list your property, we’ll walk you through every cost, every step of the way — and help you keep more money in your pocket with our low commission model.
