Average closing costs in Vermont

Buying a home is a major milestone, and understanding closing costs ahead of time can help you feel more prepared. These costs cover the services and paperwork required to complete the transaction. In Vermont, both buyers and sellers share closing costs, and the exact amount depends on the home, financing details, and local requirements. 

Key takeaways:

• Closing costs in Vermont average about 4.31% of the home’s purchase price for buyers.

• Common expenses for buyers include loan origination fees, home inspections, appraisals, and title insurance.

• Seller expenses often cover real estate agent commissions (which are fully negotiable), prorated taxes, title fees, and deed preparation.

• Many fees — such as lender charges, title services, or certain third-party costs — can be compared or negotiated to help lower total closing expenses.

How much are closing costs in Vermont?

With the median home sale price around $427,000, a buyer in Vermont can expect to pay roughly $18,660 in closing costs, which equals about 4.31% of the home’s purchase price. The total can vary depending on the property, loan type, and the buyer’s financial situation. These costs include a range of fees — such as lender charges, title insurance, appraisal, escrow services, and taxes — that buyers and sellers both contribute to at the end of the transaction.

Closing costs can also vary by location within the state due to differences in local taxes, recording fees, and service providers. Buyers should factor in these regional variations when estimating their total upfront expenses.

What affects closing costs in Vermont?

Several factors can influence how much you’ll pay in closing costs, including:

• Where you’re buying: Recording fees, transfer taxes, and local charges can vary by town or county.

• The home’s price: Fees tied to the purchase price increase as the home’s value rises.

• Your loan type: FHA, VA, and conventional loans each come with different fees, insurance requirements, and upfront costs.

• Title and escrow services: Costs depend on the provider used and the complexity of the title search.

• Taxes and recording fees: Vermont’s property transfer tax and local recording fees can affect total closing costs.

• Prepaid costs: Up-front payments for homeowners insurance, prepaid interest, and escrowed taxes.

Understanding how these factors work together can help you estimate your total cash to close and plan ahead more confidently.

What do Vermont’s closing costs include?

Closing costs in Vermont cover a range of fees and services required to finalize a home purchase. Some costs are tied directly to the loan and lender, while others relate to inspections, insurance, and administrative steps. Understanding what each fee includes can help buyers plan ahead and avoid surprises at closing.

• Lender-related fees: Application, origination, and credit check fees. Some loans may also include mortgage rate lock fees.

• Appraisal fees: Required to confirm the home’s market value through a professional home appraisal.

• Home and pest inspection fees: Covers inspections to identify structural issues or potential concerns, outlined in a typical home inspection checklist.

• Title search and insurance: A title search reviews ownership history, while title insurance protects buyers and lenders from ownership disputes or liens.

• Survey fees: Verifies property boundaries and easements, which may be required in certain areas.

• Courier and recording fees: Covers the cost of filing and recording official documents with local offices.

• Notary fees: Ensures signatures on closing documents are properly verified.

• Prepaid items: Up-front payments for property taxes, homeowners insurance, and escrowed costs.

• Private mortgage insurance (PMI): Required for some loans when the down payment is less than 20%.

• Attorney fees: Paid if legal review or representation is used during closing.

• Mortgage discount points: Optional mortgage points paid upfront to reduce the interest rate.

Each of these costs helps ensure a smooth and secure transaction. Reviewing your Loan Estimate and Closing Disclosure can help clarify exactly what you’re paying for and why.

Who pays closing costs in Vermont?

Both buyers and sellers in Vermont are responsible for certain closing costs. While there are common expectations around who pays what, these are general guidelines, and some costs may be negotiated as part of the transaction.

Closing costs for buyers

Buyers in Vermont typically pay most lender- and property-related fees. These costs are tied to the mortgage process and to confirming the home’s value, condition, and legal ownership. Common buyer closing costs include:

• Loan application and origination fees

• Home appraisal and inspection

• Title search and lender’s title insurance

• Prepaid expenses

• Recording and notary fees

• Attorney fees (if used)

• Mortgage discount points

These costs help protect both the buyer and the lender and ensure the transaction is properly documented. Planning ahead for these expenses can help buyers budget more confidently. For additional guidance, it can be helpful to review first-time home buyer expenses to save for.

Closing costs for sellers

Sellers in Vermont also pay a portion of closing costs, some of which may overlap with buyer expenses. The largest cost for sellers is often the real estate agent commission (which is fully negotiable), though other fees and prorated costs may apply. Common seller closing costs in Vermont include:

• Real estate agent commissions

• Owner’s title insurance and title-related fees

• Prorated property taxes and HOA fees

• Deed preparation and recording fees

• Attorney fees (if used)

• Outstanding mortgages and liens

• Seller concessions

How to reduce your closing costs in Vermont

While some closing costs in Vermont — such as title insurance, recording fees, property taxes, and prepaid interest — are fixed, others can be reduced with the right approach. Buyers who plan ahead may be able to lower their upfront expenses by comparing options and exploring available assistance programs before closing.

• Research home buyer assistance programs: Vermont offers several assistance programs designed to help make homeownership more accessible. Organizations like the Vermont Housing Finance Agency (VHFA) provide down payment and closing cost assistance programs for eligible buyers, including first-time buyers. Some programs offer grants or forgivable loans that can be applied toward upfront costs, helping reduce the amount due at closing.

• Shop around for a lender: Lender fees can vary, so comparing multiple loan offers may help you find lower origination or processing costs. Understanding how to choose a mortgage lender can make it easier to identify the most competitive option.

• Negotiate seller concessions: In some transactions, sellers may agree to cover a portion of the buyer’s closing costs through seller concessions. This can reduce how much cash you need upfront, depending on market conditions and negotiations.

• Consider a no-closing-cost mortgage: Some lenders offer no-closing-cost mortgage options that roll certain fees into the loan balance or offset them with a slightly higher interest rate, which can reduce upfront costs at closing.

While not every fee is negotiable, understanding which closing costs can be adjusted may help buyers find opportunities to save.

FAQ on closing costs in Vermont

Does Vermont require paying for a real estate attorney?

No, Vermont doesn’t require buyers or sellers to hire a real estate attorney. Most transactions are handled by real estate agents, title companies, and escrow professionals who manage the paperwork and legal details. Some buyers and sellers still choose to work with an attorney for added guidance in complex transactions. Learn more about when hiring a real estate attorney may be helpful.

When do Vermont buyers find out their closing costs?

Buyers in Vermont learn their estimated closing costs early in the loan process. Lenders provide a Loan Estimate—sometimes referred to as a Good Faith Estimate—within three business days of applying for a mortgage. At least three days before closing, buyers receive a Closing Disclosure outlining final costs. Reviewing both documents can help prevent surprises at closing.

When and how will I pay my Vermont closing costs?

In Vermont, closing costs are typically paid on closing day when ownership of the property officially transfers. Buyers usually pay by cashier’s check or wire transfer to the title or escrow company. Timing and payment instructions are shared in advance, so buyers know exactly what to expect when it’s time to close on a house.

How can I save up for Vermont closing costs?

Closing costs in Vermont often fall within the national range of about 3% to 6% of the home’s purchase price. Buyers can prepare by setting aside a portion of each paycheck, using bonuses or tax refunds, or exploring assistance programs through the Vermont Housing Finance Agency. For more strategies, see tips on how to save for a house.

Are Vermont closing costs deductible on my taxes?

Most closing costs in Vermont aren’t tax deductible, but some exceptions apply. Fees like title insurance, appraisal, and recording costs generally can’t be deducted. However, prepaid mortgage interest and property taxes may qualify in the year you buy your home. Homeowners who itemize may also deduct mortgage interest and property taxes over time. Learn more in are closing costs tax deductible and tax deductions for homeowners, or review IRS Publication 530 and IRS guidance on tax benefits for homeowners.

The bottom line: Prepare your finances for Vermont closing costs

Closing costs in Vermont typically average around 4.31% of the home’s purchase price, covering expenses such as lender and title fees, insurance, taxes, and recording costs. Both buyers and sellers share these costs, though the exact amounts can vary based on location, loan type, and negotiations. Understanding which fees apply to your situation — and which ones you may be able to reduce — can help you budget more confidently. If you’re ready to buy a home in Vermont, now’s the time to get preapproved and begin your mortgage application process.