Closing costs in New Hampshire: Who pays for what?
Buying a home is a significant financial decision that comes with a variety of fees and costs beyond just the home’s price tag. And selling a home isn’t all profit — there are costs associated with that as well. The laundry list of fees and expenses associated with a real estate transaction, called closing costs, must be paid before any home sale can be finalized. Here’s a breakdown of closing costs in New Hampshire, how they work and who pays which costs.
How much are closing costs in New Hampshire?
The exact price for closing costs depends on the state in which the sale is taking place, among other factors. In the Granite State, the average closing cost tab is 2.3 percent of a home’s sale price, according to the most recent data available from CoreLogic’s Closing Corp.
Redfin data shows that the median price of a home in New Hampshire was $502,800 as of August 2024 — that would put closing costs in the state at around $11,564 for a median-priced sale.
But of course, not all homes sell for the median price: Depending on the location, a home’s price could be substantially higher or lower. In Keene, for instance, the median price was just $353,000, which means closing costs there would be $8,119. But in Portsmouth, where the median was a steep $739,900, they’d be substantially higher at $17,017.
Who pays closing costs in New Hampshire, buyers or sellers?
Both buyers and sellers are on the hook for closing costs in a real estate deal, at least to some degree. For buyers, many of these costs will be fees charged by their lender as part of the mortgage-approval process. Typical closing costs for sellers in New Hampshire, on the other hand, include transfer taxes, recording fees and more.
Keep in mind, too, that both buyers and sellers may need to pay real estate agent commissions at closing. Which party pays which commission, and how much that will be, is negotiated beforehand. Each agent typically makes somewhere between 2.5 and 3 percent of the home’s sale price — on a median-priced $502,800 home sale, 2.5 percent comes to $12,570. Both parties may choose to hire a real estate attorney as well, and if so, the legal fees will also be due at closing.
Here’s a closer look at who pays what.
Common closing costs for buyers
- Loan-related fees: Mortgage lenders usually charge a variety of fees along the way, for everything from your application to checking your credit to originating the loan. If you opt to pay mortgage points to lower your interest rate, those funds will be part of your closing costs as well.
- Appraisal: A professional home appraisal will be required by your mortgage lender to ensure that the home is worth at least the amount they’re loaning you. The average appraisal cost in New Hampshire is $650, according to data from World Population Review.
- Home inspection: Though not a requirement, an inspection will help ensure that there are no underlying problems with a home — or make you aware of them early if there are. The cost of a home inspection typically runs another few hundred dollars.
- Title-related fees: In New Hampshire, home buyers are typically responsible for paying for title insurance policies to protect against ownership issues that could impact the sale. There may be a fee to run a title search as well.
- Transfer taxes: Unlike most states, New Hampshire imposes a real estate transfer tax on both the buyer and the seller. The rate is 75 cents for every $100 in home value — for a median-priced $502,800 home, this comes to $3,771.
- Prepaids: Homebuyers are often required to prepay a certain amount of property taxes and home insurance premiums upfront. The funds will be held in escrow and distributed on your behalf as needed.
Common closing costs for sellers
- Transfer taxes: As described above, this common real estate tax is charged to both buyers and sellers in New Hampshire.
- Recording fee: In New Hampshire, the seller is on the hook for recording fees, which cover the cost of making the real estate transaction public record. These can run to several hundred dollars.
- Property taxes and HOA fees: The seller is responsible for making sure any applicable property taxes and HOA fees are fully paid up until the day the sale is completed.
- Concessions: Seller concessions, in which the seller agrees to cover some of the buyer’s expenses to sweeten the deal, are common. For example, many sellers agree to pay for the cost of the repair if an issue is found in during the home inspection.
- Mortgage payoff: It’s also not unusual to have a remaining balance on your mortgage when selling your house. If this is the case, you’ll need to pay that off from the proceeds of the sale, and there may be a wire-transfer fee as well.
Lowering your closing costs in New Hampshire
The old adage that everything is negotiable certainly applies to real estate, and in some cases, also to closing costs.
The most expensive cost associated with closing, Realtor commissions, is open to negotiation: Even a minimal discount here can make a big difference on a sale totaling hundreds of thousands of dollars. In addition, some “discount brokers” represent clients for a much lower percentage, and some agents are willing to work for a flat fee, rather than a percentage of the home sale price.
Homebuyers can also lower their closing costs simply by shopping around for a mortgage lender to find the best rate and terms — the fees associated with a mortgage can vary substantially from one lender to another.
It’s also possible for buyers to request that the seller cover some of their closing expenses. The seller doesn’t have to say yes, and the tactic may not be as successful in a tight housing market where sellers have the upper hand, but seller concessions are not uncommon.
Finally, the government may be able to help qualified buyers cover some closing and down payment costs. There are often programs offered at the city, county and state levels, especially if you’re a first-time buyer. New Hampshire has a variety of programs that can help ease the burden of closing costs.
Find a local real estate agent
Whether you’re buying or selling, having a knowledgable local real estate agent on your team can make the process much easier, especially for more complex steps like price negotiations and navigating closing requirements. Consider asking friends or family for recommendations, and check out online reviews from past clients too. It’s also smart to look around your neighborhood, or the one you want to buy in, noting the names on any “for sale” signs you might see. Interview more than one candidate before you commit to someone, to help ensure you find someone who understands your budget and goals. The better you click with your agent, the smoother your experience is likely to be.
