Are you budgeting for a Wilmington home and wondering who pays what at closing? You are not alone. Buyers and sellers across New Hanover County often feel unsure about which fees fall on which side and how much to plan for. In this guide, you will learn the typical cost split in North Carolina, what is negotiable, and how to build a realistic estimate for your situation. Let’s dive in.
Who pays what in Wilmington
In many North Carolina transactions, sellers commonly cover the owner’s title insurance premium and real estate commission. Buyers usually pay lender-related fees, third-party reports, and the lender’s title policy. That said, every contract is negotiable. Your Offer to Purchase and Contract controls the final allocation, so confirm each line item with your agent and closing attorney.
Buyer costs: what to expect
Buyers in New Hanover County typically pay lender and third-party expenses plus prepaid items. Plan for lender fees, inspections, and initial escrow funding.
Common buyer-paid items include:
- Loan application and origination fees
- Discount points if you choose to buy down the rate
- Appraisal, credit report, flood determination if required
- Home inspection, pest inspection, and survey if needed
- Lender’s title insurance policy
- Title search and buyer-side settlement or closing fee if charged
- Recording fee for the mortgage or deed of trust
- Prepaid items such as homeowners insurance, property tax prorations, and HOA dues if applicable
- Escrow or impound account funding for taxes and insurance
As a starting estimate, budget roughly 2% to 5% of the purchase price for buyer closing costs. Your exact amount depends on your loan type, discount points, escrow setup, and any seller credits.
Seller costs: what to expect
Sellers often cover items tied to the transfer of ownership and the sale itself. The largest line item is usually the real estate commission, followed by title-related costs and prorations.
Common seller-paid items include:
- Real estate commission, commonly 5% to 6% of the sale price
- Owner’s title insurance premium in many NC markets
- Prorated property taxes through the closing date
- Seller-side settlement or attorney fee
- Deed recording fee
- Payoff of any existing mortgage, liens, or judgments
- Repairs or concessions negotiated during inspections
As an initial planning range, seller closing costs can total about 6% to 10% of the sale price, excluding mortgage payoff.
What is negotiable
Several items can be negotiated in your contract. You can agree on who pays for the owner’s and lender’s title policies. You can also negotiate repair credits, HOA transfer fees, and seller concessions toward buyer closing costs. Lender rules limit the amount of seller credits, and limits vary by loan program, so confirm with your lender before finalizing terms.
North Carolina practices to know
- Closings are commonly handled by attorneys, title companies, or licensed settlement agents. Your lender will specify acceptable settlement options.
- In many NC markets, the seller pays the owner’s title insurance premium and commission, while the buyer pays lender fees and the lender’s title policy. Confirm local practice in Wilmington and document your agreement in the contract.
- Recording fees and property tax rates are county specific. For exact recording fees, consult the New Hanover County Register of Deeds. For tax rates and billing periods, consult the New Hanover County Tax Administration.
- Federal consumer disclosure rules require a Loan Estimate early in the process and a Closing Disclosure before closing. Use these documents to compare estimates with final numbers.
How to estimate your costs
Use this step-by-step process to build a Wilmington-specific estimate:
- Confirm a current price point for your target home in New Hanover County using local data.
- Ask your lender for a Loan Estimate based on your loan program and down payment. This shows your itemized borrower costs and projected cash to close.
- Request a title and settlement fee quote from your closing attorney or title agent, including title insurance premiums and recording fees.
- Verify the current county property tax rate and billing period to model prorations accurately.
- Clarify the commission structure with your listing agent if you are selling.
- Add estimates for appraisal, inspections, pest inspection, and survey based on local vendors.
- Combine all line items, identify negotiable costs, and calculate your total or net.
Illustrative breakdown: $375,000 purchase
The following example is for demonstration only. Your numbers will vary by price, loan type, lender, title premiums, county fees, and negotiated terms.
Buyer example (20% down, conventional)
- Purchase price: $375,000
- Down payment (20%): $75,000
- Loan amount: $300,000
- Loan origination fee (0.5%): $1,500
- Appraisal: $600
- Credit, processing, underwriting: $800
- Home inspection: $450
- Pest inspection: $100
- Lender’s title policy and title search: $1,200
- Recording fee for mortgage: $50
- Prepaid homeowners insurance: $900
- Initial escrow funding for taxes and insurance: $1,200
- Miscellaneous or HOA transfer: $200
- Estimated buyer closing costs total: $6,000 to $12,000 (about 1.6% to 3.2% of price), not including down payment
Seller example
- Real estate commission (6%): $22,500
- Owner’s title insurance premium: $1,500
- Prorated property taxes (illustrative mid-year): $1,200
- Seller-side settlement and recording: $500
- Repairs or concessions: $2,000
- Estimated seller closing costs total, excluding payoff: about $27,700 (about 7.4% of price)
Your net proceeds will subtract any mortgage payoff and other liens. Small changes in commission, title premiums, prorations, or concessions can materially change your final number, so use written quotes whenever possible.
DIY worksheets: copy and use
Use these fields to build your own spreadsheet. Replace placeholders with the figures from your lender, title agent, and county offices.
Buyer worksheet fields
- Purchase price
- Down payment percent and amount
- Loan amount
- Loan origination fee percent and dollar amount
- Discount points
- Appraisal fee
- Credit report fee
- Underwriting and processing fees
- Home inspection fee
- Pest inspection fee
- Survey fee
- Lender’s title insurance premium
- Title search and closing fee
- Recording fees for mortgage
- Prepaid homeowners insurance
- Prepaid property taxes (prorated)
- HOA transfer and prorated dues
- Escrow or impound funding
- Seller credits toward buyer costs
- Estimated total buyer cash to close
Tip for prorated taxes: estimate by multiplying the annual tax bill by the portion of the year you will own the home.
Seller worksheet fields
- Sale price
- Real estate commission percent and dollar amount
- Owner’s title insurance
- Prorated property taxes
- Seller-side closing or attorney fee
- Repairs or credits to buyer
- Outstanding mortgage payoff(s)
- Other liens or judgments
- Estimated seller net at closing
Final tips for Wilmington closings
- Start early. Request a Loan Estimate from your lender and a title quote from your closing attorney as soon as you are under contract.
- Confirm who pays for the owner’s and lender’s title policies in your contract. Customary practice can vary by neighborhood and property type.
- Verify county fees. Recording fees and tax rates come from New Hanover County offices and can change.
- Keep a cushion. Closing costs can shift based on final prorations, lender updates, or negotiated credits.
If you want a local partner to help you compare estimates and negotiate who pays what, we are here to help. Schedule your free consultation with Carla Jai Ollison to get a tailored closing plan and a clear net or cash-to-close target.
FAQs
Who typically pays owner’s title insurance in Wilmington?
- In many North Carolina markets, the seller pays the owner’s title policy, but you should confirm locally and specify your agreement in the Offer to Purchase and Contract.
How much should a buyer budget for closing costs in New Hanover County?
- A common planning range is 2% to 5% of the purchase price, then refine with a lender’s Loan Estimate and title quote.
What are typical seller closing costs beyond commission in Wilmington?
- Sellers often cover the owner’s title policy, prorated property taxes, seller-side settlement fees, deed recording, and any repairs or buyer credits agreed to during negotiations.
Are property taxes prorated at closing in New Hanover County?
- Yes, taxes are typically prorated to the closing date based on the county’s tax calendar; verify the current rate and billing period with the county tax office.
Can a seller pay part of the buyer’s closing costs in Wilmington?
- Yes, seller credits are common, but loan program rules limit how much credit is allowed; your lender can confirm the maximum for your financing type.
Who handles the closing in North Carolina?
- Closings are commonly handled by attorneys, title companies, or licensed settlement agents, and your lender will specify acceptable options.
