Buying or selling a home in Vermont? You’ve probably heard the term “closing costs” thrown around—but what exactly does it cover? And more importantly, how much will you actually pay?

At Flex Realty, we believe in transparency and helping Vermonters keep more of their equity, so today we’re breaking down what goes into closing costs—everything from attorney fees and Realtor commissions to taxes and lender charges.

Whether you're a first-time buyer in Essex, selling your family home in Colchester, or purchasing investment property in Burlington, understanding closing costs can help you avoid surprises and negotiate smarter.

What Are Closing Costs, Really?

Closing costs are the fees and expenses due at the end of a real estate transaction—when the property officially changes hands. They’re paid by buyers, sellers, or both, depending on the type of transaction and what's negotiated.

They usually add up to 2%–6% of the purchase price, although the total depends on your situation. In Vermont, buyers tend to pay more in closing costs than sellers, but both sides have financial responsibilities.

Let’s break it all down.

1. Realtor Commissions

Who pays: Usually the seller

Real estate commission is typically the largest closing cost for sellers. In most Vermont transactions, this fee is split between the listing agent (representing the seller) and the buyer’s agent.

Traditional model: Often 5–6% of the home’s sale price

Flex Realty model: We offer a low commission structure to help sellers keep more of their profits

Local example: On a $400,000 home sale in South Burlington, a traditional commission of 6% would cost $24,000. Flex Realty's low-commission approach could save sellers thousands while still delivering full-service marketing and negotiation support.

2. Attorney Fees

Who pays: Both buyers and sellers typically hire attorneys in Vermont

Unlike many states, Vermont requires attorneys to handle the legal aspects of real estate closings. Your attorney will:

Review contracts

Conduct the title search

Coordinate with the lender

Ensure a smooth closing process

Typical cost: $900–$1,500 per side
(Note: Prices can vary depending on complexity or location)

Tip: Choose a local attorney experienced in Vermont real estate law. Flex Realty can recommend trusted legal partners in areas like Chittenden, Franklin, and Washington counties.

3. Vermont Property Transfer Tax

Who pays: Typically the buyer (unless negotiated otherwise)

This is a state tax based on the property’s sale price. Here’s how it works:

1.25% of the purchase price for most buyers

Reduced rate of 0.5% on the first $100,000 for buyers who will use the home as their primary residence

Example: For a $350,000 home:

First $100,000 taxed at 0.5% = $500

Remaining $250,000 taxed at 1.25% = $3,125
Total = $3,625

This tax is paid at closing and goes directly to the state of Vermont.

4. Title Insurance

Who pays: Buyer (owner's policy optional, lender’s policy usually required)

Title insurance protects against future claims or disputes over the property’s ownership. It’s a one-time cost paid at closing.

Lender's title insurance: Typically required if you have a mortgage

Owner's title insurance: Optional but recommended for peace of mind

Cost range: $700–$1,200 depending on home value

5. Loan Origination & Lender Fees

Who pays: Buyer

If you’re financing your home purchase, your lender will charge a variety of fees, which may include:

Loan origination fee (typically 0.5%–1% of the loan amount)

Credit report

Underwriting and processing fees

Appraisal fee ($500–$700 in Vermont)

Flood certification (if applicable)

Pro tip: Always request a Loan Estimate early in the mortgage process to understand what you’ll owe. It helps you compare lenders and avoid hidden charges.

6. Escrow & Prepaid Costs

Who pays: Buyer

Your lender may require you to prepay some expenses to fund your escrow account. This ensures there’s enough money to cover:

Property taxes

Homeowners insurance

Mortgage insurance (if applicable)

In Vermont, property taxes are collected by the town, and the amount can vary significantly. Be prepared to prepay a few months' worth of taxes and insurance premiums at closing.

7. Inspection & Testing Fees

Who pays: Typically the buyer (before closing)

While not always considered a “closing cost” because they’re paid ahead of time, inspection and environmental testing costs are critical to factor into your budget.

Home inspection: $400–$600

Radon testing: $100–$200

Water/well testing: $150–$400

Septic inspection (if applicable): $300–$500

Tip: Vermont’s older housing stock means thorough inspections are crucial, especially in rural or historic properties.

8. Recording Fees

Who pays: Buyer

To make the sale official, Vermont towns charge fees to record the deed and mortgage.

Typical recording fee: $15 per page
(Deeds and mortgages are usually 2–4 pages each)

While this is a relatively small cost, it’s a necessary part of the legal transfer of property.

9. Miscellaneous Fees

Other potential closing costs include:

Survey fees (if required by the lender): $500–$1,000

Courier or wire fees: $25–$50

HOA transfer fees (if buying into a condo or planned community): Varies

These can add up, so always ask your agent or attorney for a detailed Closing Disclosure a few days before closing.

10. Seller Concessions

Who benefits: Buyer (if negotiated)

Buyers can sometimes negotiate for the seller to cover part of their closing costs. This is especially useful for first-time buyers or those tight on upfront cash.

Example:
In a softer market or if the home has been sitting for a while, a seller might agree to cover $5,000 of the buyer’s closing costs in exchange for a full-price offer.

Flex Realty agents can help structure offers with smart concessions while keeping deals competitive.