Are you trying to pin down how much cash you’ll need to close on a home in Johnson City? You’re not alone. Closing costs can feel confusing, especially when you’re juggling inspections, loan terms, and move dates. This guide breaks down typical buyer and seller costs in Tennessee, shows what’s negotiable, and gives you clear steps to budget with confidence. Let’s dive in.
What closing costs cover
Closing costs are the one-time expenses you pay at settlement in addition to your down payment. They include lender fees, title and escrow charges, inspections, county recording, prepaids for taxes and insurance, and any agreed credits or commissions.
These are not the same as ongoing costs like monthly mortgage payments, property taxes, HOA dues, and maintenance. Federal disclosure rules require lenders to provide a Loan Estimate early in the process and a final Closing Disclosure before you sign. Compare them carefully to spot changes and confirm your cash-to-close.
Buyer costs: what to expect
As a buyer, your closing costs typically fall around 2% to 5% of the purchase price, depending on your loan, title charges, and prepaids for taxes and insurance. Here are common line items you may see in Washington and Sullivan counties:
- Loan origination and application fees. Some lenders charge a flat fee or a percentage of the loan amount. Fees vary by lender and loan type.
- Mortgage points. Optional prepaid interest that can lower your rate. One point equals 1% of the loan amount. Points can sometimes be paid by the seller if negotiated.
- Appraisal. Commonly about $400 to $700 for a typical single-family home. Larger or complex properties can be higher.
- Credit report and underwriting. Often $30 to $200 combined.
- Home inspections. A general inspection might run $300 to $600. Specialty inspections like termite or radon can add $50 to $200 each.
- Title search and lender’s title insurance. Your lender will require a policy that protects the loan. Premiums depend on price and are based on state or policy schedules.
- Owner’s title insurance. In many Tennessee transactions sellers often pay for the owner’s policy, but this is custom and negotiable.
- Escrow or settlement fee. Paid to the closing agent or title company. Sometimes split between buyer and seller, depending on local practice.
- Recording fees. The county charges to record your deed and mortgage. Exact fees vary; confirm with the Washington County or Sullivan County Register of Deeds.
- Prepaid taxes and insurance. Lenders often collect several months of property tax and homeowner’s insurance to set up your escrow account. The amount depends on timing and premiums.
- Survey, if required. Often $300 to $900 depending on lot size and complexity.
- HOA transfer fees or documents. If the property is in an HOA, expect $100 to $400 in many cases.
- Miscellaneous. Courier, wire, flood certification, and notary fees can add a small amount.
Bold planning tip: Start with a 2% to 5% estimate for buyer closing costs, then refine using your lender’s Loan Estimate and a title fee quote.
Seller costs: what to expect
For sellers, closing costs are driven mostly by the brokerage commission. Other fees are smaller but still matter when you plan your net proceeds.
Common seller items in Tennessee include:
- Real estate commission. Historically, many U.S. markets see a combined commission around 5% to 6% of the sale price, though rates and splits vary and are negotiable. This is usually the largest cost.
- Owner’s title insurance policy. In many Tennessee deals it is customary for the seller to provide the owner’s policy for the buyer. This is local custom and negotiable.
- Payoff of existing mortgage(s). Includes the loan balance, per diem interest, and any payoff fees.
- Recording-related fees. Small county charges to record the deed and any necessary documents. Amounts vary by county.
- Prorated property taxes and HOA dues. You typically reimburse the buyer for your share of the current period up to the closing date. Proration depends on local tax calendars.
- Miscellaneous seller fees. Courier, payoff statements, and any agreed concessions or credits.
As a broad planning range, sellers often see total costs (including commission) commonly land around 6% to 10% of the sale price. Excluding commission, seller fees can run about 1% to 3%, depending on local practice and what is negotiated.
Who pays what in Tennessee
Many items are negotiable and are set in your purchase contract. Typical patterns include:
- Buyers usually pay loan-related costs, appraisal, inspections, and the lender’s title policy and escrow prepaids.
- Sellers commonly pay brokerage commission and, in many Tennessee transactions, the owner’s title policy. Customs vary by county and are negotiable.
- Property taxes and HOA dues are commonly prorated to the closing date. The exact method depends on county calendars and agreements.
Because practices can differ by county and even by neighborhood, confirm details with your agent and the closing/title company before you finalize terms.
Local specifics to check
Johnson City closings typically record with the Washington County Register of Deeds, and some transactions in the Tri-Cities involve Sullivan County as well. For accurate recording fees and deed requirements, check directly with the Register of Deeds in the applicable county.
Property taxes are commonly prorated at closing, but calendars can vary. Ask the Washington County or Sullivan County tax assessor or collector about current schedules so you understand how proration will affect your numbers.
Title insurance premiums are price-based and follow state or policy schedules. Settlement or closing fees may be split or assigned to one party depending on custom and negotiation. Ask a local title company for an itemized estimate.
If your property is inside city limits or in an HOA, ask your closing agent whether any municipal certificates, estoppel letters, or HOA transfer fees will apply.
Ways to lower your costs
There are several ways to trim closing costs without risking the deal:
- Shop lenders. Compare at least two Loan Estimates. Review lender fees and APR, not just the headline rate.
- Negotiate lender fees. Ask about credits that reduce closing costs in exchange for a slightly higher rate. Compare long-term costs before deciding.
- Seek seller concessions. Buyers can negotiate credits for closing costs or for rate buydowns, especially if a seller wants a quicker sale.
- Evaluate no-closing-cost loans. These usually shift costs into a higher rate. Make sure the trade-off fits your time horizon.
- Get title quotes. Ask for an itemized title fee schedule and check if any bundled discounts are available.
- Time your closing. If possible, schedule to minimize prepaid interest and escrow deposits for taxes and insurance. Ask your lender and title company to model options.
- Sellers can negotiate commission. Consider service levels and marketing reach along with rate, then choose the path that maximizes your net.
Budget checklists
Use these quick lists to organize your numbers and avoid surprises.
Buyer budgeting checklist
- Request a Loan Estimate from each lender you’re considering and line up fees side by side.
- Ask a local title company for an itemized quote for title, escrow, and recording fees.
- Price your inspections and appraisal with local providers to refine estimates.
- Confirm whether the seller customarily pays the owner’s title policy for your property type and county.
- Ask about property tax proration and the expected escrow deposit for taxes and insurance.
- Decide whether to buy mortgage points and how that affects your budget.
- Build a 2% to 5% buffer for closing costs, then update once you receive your Closing Disclosure.
Seller budgeting checklist
- Discuss commission structure and service plan with your listing agent.
- Ask the title company for a seller-side estimate including owner’s title policy, recording, and payoff-related fees.
- Verify payoff amounts for all mortgages, lines of credit, and any liens.
- Confirm property tax, HOA, and utility prorations based on the projected closing date.
- Decide whether to offer buyer credits or rate buydown incentives to speed the sale.
Example estimates
The following examples are illustrative only. Real numbers change with loan terms, insurance premiums, exact county fees, title rates, and negotiated terms.
Example A: buyer on a $300,000 purchase
- Appraisal: $500
- Home inspection: $450
- Lender fees and any points: $2,500
- Title and lender’s policy: $900
- Escrow or closing fee share: $400
- Recording and miscellaneous: $200
- Prepaid taxes and insurance escrow: $2,000
Approximate total buyer closing costs: about $6,950, or roughly 2.3% of the price.
Example B: seller on a $300,000 sale
- Real estate commission at 6%: $18,000
- Owner’s title policy: $1,200
- Prorated taxes, HOA, municipal items: $700
- Recording and courier: $150
Approximate total seller closing costs: about $20,050, or roughly 6.7% of the price. Excluding commission, other seller closing costs total about $2,050, or roughly 0.7%.
Verify your numbers
To lock in your budget, take these steps early:
- Get a Loan Estimate from your lender, then review the Closing Disclosure before settlement to confirm fees and cash-to-close.
- Ask a local title company for written quotes on title insurance, settlement, and recording.
- Confirm current recording fees with the Washington County or Sullivan County Register of Deeds.
- Ask the county tax assessor or collector about the current property tax schedule and how proration will be calculated for your closing date.
- Clarify who will pay the owner’s title policy and how any closing fee is split in your contract.
Next steps in Johnson City
Understanding closing costs helps you plan, make stronger offers, and protect your net proceeds. If you are buying, start with a 2% to 5% budget and refine it with real quotes. If you are selling, focus on commission, owner’s title policy, and prorations to estimate your net.
When you want clear local guidance and someone to coordinate the details end to end, connect with Mary Glenn Lively. You’ll get neighborhood-level advice, tailored estimates, and white-glove coordination from contract to close. Get your home’s free valuation and schedule a no-obligation consult.
FAQs
How much should a Johnson City buyer budget for closing costs?
- A common planning range is 2% to 5% of the purchase price, depending on lender fees, title charges, and prepaids, and before any negotiated seller credits.
How much do Tennessee sellers typically pay to close?
- The largest cost is usually brokerage commission, often around 5% to 6% of the sale price in many markets, with other seller fees commonly adding 1% to 3% depending on local practice.
In Tennessee, who usually pays the owner’s title policy?
- In many Tennessee transactions the seller pays for the owner’s title policy, but this is a local custom and fully negotiable; confirm with your title company and agent.
Can buyers roll closing costs into the mortgage?
- Some costs can be covered via lender credits or by accepting a slightly higher rate, but many items, including prepaids and some fees, are typically paid at closing; check your loan program.
What are smart ways first-time buyers can cut closing costs?
- Shop lenders, compare Loan Estimates, negotiate lender fees, ask for seller credits, and avoid optional add-ons that do not provide clear value for your home and loan.
