A comprehensive breakdown of what you'll pay at closing when buying a home in Vermont. Closing costs typically range from 2-5% of your purchase price, with Vermont's unique 1.45% buyer-paid transfer tax being the largest single expense.
Closing costs are the fees and expenses you pay when finalizing your home purchase, separate from your down payment. These costs cover everything from loan processing to title insurance to government taxes.
In Vermont, buyers should budget 2-5% of the purchase price for closing costs. On a $300,000 home, this means $6,000-$15,000 in addition to your down payment.
All closing costs are paid at the closing table, typically via cashier's check or wire transfer.
Buyers typically pay lender fees, inspections, and in Vermont, the 1.45% property transfer tax. Sellers pay agent commissions.
Vermont requires BUYERS (not sellers) to pay the 1.45% transfer tax - the largest closing cost you'll face.
THE LARGEST CLOSING COST FOR VERMONT BUYERS
Important Planning Note
When calculating your total cash needed to close, remember to add this 1.45% transfer tax to your other closing costs. Many first-time buyers are surprised by this expense, so budget accordingly!
Here's every fee you can expect to see on your closing statement, organized by category.
Charges from your mortgage lender for processing and originating your loan.
Costs for ensuring clear property ownership and legal document preparation.
Government taxes, property tax escrow, and insurance prepayments.
Pre-closing inspections and miscellaneous costs for due diligence.
Paid before closing
If required
VT rural areas
VT rural areas
See how closing costs break down for different purchase prices in Vermont.
Follow these steps to understand, budget for, and manage your closing costs effectively.
Within 3 business days of your mortgage application, you'll receive a Loan Estimate that breaks down all estimated closing costs.
You must receive the Closing Disclosure at least 3 business days before closing. This is your final cost breakdown.
You'll need to bring certified funds to closing. Plan ahead to have the money ready.
Some closing costs are negotiable, while others are set by law or third parties.
Understanding which costs are flexible and which are fixed can help you save money.
These fees can often be reduced or waived through shopping around or negotiation:
These fees are set by law or third parties and cannot be negotiated:
Sellers can contribute toward your closing costs as part of the purchase negotiation. Here's what you need to know:
Vermont has unique requirements and common practices that affect your closing costs.
Unlike many states where the seller pays, Vermont law requires the BUYER to pay the 1.45% property transfer tax. This is often the single largest closing cost.
On a $300,000 home, this equals $4,350
Vermont is an 'attorney state,' meaning real estate attorneys must be involved in the closing process. This is for your protection.
Budget $800-$1,200 for attorney fees
Many Vermont properties are in rural areas with private wells and septic systems. These inspections are critical and often required by lenders.
Budget an additional $500-$900 for these inspections
Older Vermont homes may have oil heating systems. Underground or old oil tanks can be environmental hazards and should be inspected.
Inspection: $200-$400, Removal/Replacement: $1,000-$3,000+
Vermont winters require efficient heating systems. Lenders may require larger escrow accounts for heating oil or propane prepayment.
May need to prepay heating fuel at closing
Winter closings in Vermont may require snow removal for inspectors and appraisers. Spring closings may reveal foundation or drainage issues after snow melt.
Plan inspection timing carefully
Use our free calculators to estimate your total closing costs and monthly payments for homes in Vermont.
