How Much Are Closing Costs When Buying or Selling a Home in Vermont ?

Buying or selling a home in Vermont comes with a lot of excitement, but also a lot of paperwork and expenses. One of the most commonly misunderstood aspects of a real estate transaction is closing costs. These are the one-time fees due at the end of the buying or selling process, and if you’re not prepared, they can catch you off guard.

Whether you're a first-time buyer eyeing a home in Burlington or a seller in Middlebury preparing to list, understanding Vermont’s unique closing costs can help you budget wisely and avoid surprises. Let’s break it down for both buyers and sellers—and show how Flex Realty can help you keep more money in your pocket.

What Are Closing Costs?

Closing costs are the fees and expenses paid when a real estate transaction is finalized. Both buyers and sellers are responsible for different portions of these costs. In Vermont, buyers typically pay around 2%–5% of the home’s purchase price, while sellers often pay 6%–10%, mainly due to real estate commission.

These costs can include everything from attorney fees to recording charges, and they vary based on location, loan type, and the professionals involved in the transaction.

Buyer Closing Costs in Vermont

Common Closing Fees for Buyers

Here’s a breakdown of typical buyer-side closing costs in Vermont:

• Loan Origination Fee: Usually 0.5% to 1% of the loan amount. This is charged by your lender to process your mortgage.
• Appraisal Fee: $400–$700 to confirm the property’s value.
• Home Inspection: $300–$600. Not required, but highly recommended given Vermont’s older housing stock and unique environmental concerns.
• Title Search and Title Insurance: $600–$1,000 to confirm clear ownership and protect against future disputes.
• Recording Fees: Town clerks charge ~$10 per page. Expect $70–$150 depending on how many documents are filed.
• Prepaid Property Taxes and Insurance: You’ll likely need to prepay several months into escrow.
• Attorney Fees: While not mandatory, most Vermont buyers hire an attorney. Expect $500–$1,500.

Buyer Cost Estimate

For a $400,000 home purchase in Vermont, buyer closing costs typically range between $8,000–$12,000, depending on your loan type and service providers.

How Buyers Can Save

• Shop for lenders: Rates and fees vary. Always compare at least 2–3 lenders.
• Negotiate credits: Some sellers offer credits toward closing costs to make deals more attractive.
• Use Vermont-specific programs: First-time buyers may qualify for VHFA (Vermont Housing Finance Agency) assistance, which can reduce upfront expenses.

Seller Closing Costs in Vermont

Common Closing Fees for Sellers

Sellers carry the bulk of closing expenses, especially commissions. Here's a closer look:

• Real Estate Commission: The biggest chunk—typically 5%–6% of the sale price. At Flex Realty, our low commission model helps sellers save thousands.
• Attorney Fees: Common in Vermont, with costs averaging $500–$1,500.
• Property Transfer Tax: 1.25% of the sale price, with a reduced rate (0.5%) on the first $100,000 for primary residences.
• Mortgage Payoff and Discharge Fee: Your lender may charge $100–$300 to prepare the necessary documentation.
• Prorated Property Taxes: Depending on the closing date, you may need to reimburse the buyer or receive a credit.
• Title Work or Miscellaneous Recording Fees: Usually around $200–$500 if you're contributing to any buyer closing costs.

Seller Cost Estimate

For a $400,000 sale, total closing costs can reach $25,000–$30,000, with the real estate commission making up the largest portion.

How Sellers Can Save

• Work with a low-commission brokerage: Flex Realty clients typically save $8,000–$10,000 compared to sellers using traditional 6% agencies.
• Get clear quotes: From attorneys, payoff providers, and municipalities to avoid overpayment.
• Review buyer requests carefully: Some buyers may ask you to cover part of their closing costs—always consult with your agent before agreeing.

Local Nuances in Vermont Real Estate Closings

Unlike some other states, Vermont is an attorney-closing state—which means legal professionals often oversee contracts, title work, and fund disbursement. This can add a level of protection but also introduces variability in legal fees.

Other Vermont-specific quirks:

• Town clerks handle recording at the local level, so fees and turnaround times vary.
• Rural properties may have added costs for well testing or septic inspections.
• Winter closings can be tricky due to weather delays, so factor in flexibility.

How Flex Realty Helps Minimize Your Closing Costs

At Flex Realty, we’re passionate about helping Vermont buyers and sellers save money without sacrificing service. Here’s how we do it:

• Low Commission, Full Service: Sellers save thousands while still getting full MLS exposure, expert negotiation, and local guidance.
• Trusted Partners: We connect you with affordable, high-quality lenders, inspectors, and attorneys.
• Transparent Process: No hidden fees. We’ll break down your estimated closing costs before you list or make an offer.
• Smarter Tech = Lower Costs: Our digital-first systems reduce delays and minimize administrative charges.

Whether you’re buying a starter home in Winooski or selling a lakefront property in Colchester, we help keep your transaction efficient and affordable.

Final Thoughts

Closing costs are a critical—but often overlooked—part of buying or selling real estate in Vermont. From attorney fees to transfer taxes, these costs can add up fast. But with the right team, including a low-commission real estate partner like Flex Realty, you can navigate the process with confidence—and save money in the process.

Want a custom estimate for your situation? Reach out today and let’s break down your potential closing costs together.

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