Closing costs in Virginia usually run between 2% and 5% of the home’s purchase price, divided between buyer and seller according to the terms of the purchase contract. On a home near the state’s median sale price of roughly $400,000, that works out to somewhere between $8,000 and $20,000 in combined fees, taxes, and prepaid items, before the real estate commission is added in.1Fannie Mae. Closing Costs Calculator Buyers generally carry the loan-related charges and recordation taxes; sellers carry the commission and the grantor’s tax. What follows breaks down each line so you can estimate your own number.
What Buyers Pay
Loan Fees and Appraisal
Your lender charges an origination fee for underwriting and processing the mortgage, commonly around 1% of the loan amount. On a $360,000 loan, that is roughly $3,600, though some lenders use a flat fee or build the cost into the interest rate. Smaller lender charges cover the credit report, flood certification, and tax service.
An appraisal is required on nearly every financed purchase. In Virginia, expect $400 to $700 for a single-family home, depending on size and location. The appraisal confirms to the lender that the property’s value supports the loan.
Title Insurance
Lender’s title insurance is mandatory on any financed purchase and is paid by the buyer. Owner’s title insurance is optional but protects your equity against ownership disputes or recording errors; it typically runs 0.5% to 1% of the sale price. Virginia law requires the settlement agent to notify you that owner’s title insurance is available before closing.2Virginia Code Commission. Code of Virginia – Chapter 9. Real Estate Settlements
Inspection and Optional Survey
A home inspection is not required by law but is standard practice, generally $300 to $500 for a single-family home. A boundary survey, if you or your lender want the lot lines confirmed, adds another $300 to $800.
Prepaid Escrow Items
Several items on your settlement statement are not fees but money you pay in advance:
- The first year’s homeowner’s insurance premium, plus roughly two months of premium to seed the escrow account.
- Property tax escrow, calculated to cover taxes coming due before the next collection.
- Per diem interest on the mortgage from your closing date through the end of that month. Closing later in the month reduces this charge.
Together, prepaid items commonly add $2,000 to $5,000 to a buyer’s costs, driven mostly by the local tax rate and insurance premium.
What Sellers Pay
Real Estate Commission
The commission is almost always the seller’s largest closing expense. Total commissions in Virginia are commonly negotiated at 5% to 6% of the sale price, split between the listing agent and the buyer’s agent. On a $400,000 sale, that is roughly $20,000 to $24,000. There is no legally fixed rate.
Deed Preparation and Payoff
The settlement agent or an attorney prepares the deed transferring title to the buyer, and that document-preparation charge is separate from the court’s recording fee. Sellers also pay off the remaining balance on any existing mortgage, along with a lender payoff-processing fee. Wire fees for sending and receiving funds usually run $25 to $75 each.
FIRPTA Withholding for Foreign Sellers
If you are a foreign person selling Virginia real property, the buyer is generally required to withhold 15% of the sale price and remit it to the IRS under the Foreign Investment in Real Property Tax Act.3Internal Revenue Service. FIRPTA Withholding The withholding is a credit toward your federal income tax on the sale, not an additional tax. A qualifying seller can apply to the IRS for an exemption or reduced rate before closing.
Virginia Transfer Taxes
Three transfer-related taxes apply to most Virginia real estate sales. These rates are set by statute and are not negotiable.
Grantor’s Tax (Seller)
The seller pays a grantor’s tax of $0.50 per $500 of the sale price or actual value, whichever is greater — the equivalent of $1.00 per $1,000. On a $400,000 sale, the grantor’s tax is $400.4Virginia Code Commission. Code of Virginia 58.1-802 – Additional Tax Paid by Grantor; Collection
Recordation Tax on the Deed (Buyer)
The buyer pays a recordation tax on the deed at $0.25 per $100 of the sale price or actual value, whichever is greater. On a $400,000 purchase, that is $1,000.5Virginia Code Commission. Code of Virginia 58.1-801 – Deeds Generally; Charter Amendments
Recordation Tax on the Deed of Trust (Buyer)
A separate recordation tax applies to the deed of trust at the same $0.25 per $100 rate, calculated on the loan amount rather than the sale price. On a $360,000 mortgage, that comes to $900. The buyer typically pays this charge.6Virginia Code Commission. Code of Virginia 58.1-803 – Deeds of Trust or Mortgages; Maximum Tax For a $400,000 sale with a $360,000 loan, the three transfer taxes total $2,300: $400 from the seller and $1,900 from the buyer.
Recording and Notary Fees
After the transfer taxes are paid, the clerk of the circuit court charges a separate fee to record each document. Virginia’s fee schedule is based on page count:
- 10 pages or fewer: $18
- 11 to 30 pages: $32
- 31 or more pages: $52
A standard residential closing records at least the deed and the deed of trust, so recording fees usually total between $36 and $64. Some localities add small surcharges that can push the per-document cost up by a few dollars.7Virginia General Assembly. Virginia Code 17.1-275 – Fees Collected by Clerks of Circuit Courts; Generally
Notary fees are capped by statute at $10 per act on paper and $25 per act for electronic notarization.8Virginia Code Commission. Code of Virginia 47.1-19 – Fees Even with several documents requiring notarization, the total is usually under $100, and many settlement agents fold notary work into their overall fee.
HOA and Condo Resale Packet Fees
If the property is in a homeowners association or condominium, the seller must provide a resale certificate covering the association’s finances, rules, fees, and any pending assessments. State law caps what the association or its management company can charge. Current maximums, in effect since January 2023 and scheduled for review no later than 2028, are:9Virginia Department of Professional and Occupational Regulation. Maximum Allowable Preparation Fees
- Resale certificate: $211.96 paper, $176.64 electronic
- Unit inspection: $141.31
- Expedited processing within five business days: $70.66 additional
- Pre-settlement update: $70.66
- Post-closing update fee, charged to the buyer: $70.66
The seller usually pays for the resale certificate; the buyer pays the post-closing update. Some associations also charge a capital contribution or move-in fee governed by the association’s own declaration rather than state-mandated limits.
Property Tax Proration
Virginia property taxes are billed to whoever owns the home on the assessment date, so at closing the settlement agent splits the bill by the number of days each party owned the property during the current tax period. If the seller has already paid the annual bill and closes in June, the buyer reimburses the seller for the remaining months. If taxes have not yet been paid, the seller credits the buyer. The county treasurer does not adjust the bill itself; the proration lives on the settlement statement.
Who Runs Your Closing
Virginia does not require an attorney at closing, but it does require a qualified settlement agent: a licensed attorney, a title insurance company, a title insurance agent, a licensed real estate broker, or an authorized financial institution.10Virginia Code Commission. Code of Virginia – Chapter 10. Real Estate Settlement Agents The buyer has the legal right to choose the settlement agent, and the seller cannot require you to use a specific one. Settlement agent fees range from a few hundred dollars to over $1,000 depending on the transaction.
Virginia is a “wet settlement” state. The lender’s funds must be available at the closing table, and the settlement agent must record the documents and disburse proceeds within two business days of settlement. Loan funds cannot be released before recording, with narrow exceptions such as paying the recording fees themselves.2Virginia Code Commission. Code of Virginia – Chapter 9. Real Estate Settlements The rule protects both sides by keeping money and title moving together.