Buying or selling on the North Shore and wondering what closing will really cost? You are not alone. The mix of lender fees, legal work, taxes, and prepays can feel like a moving target, especially with coastal nuances and Greater Boston price points in the mix. This guide breaks down who pays what in Massachusetts, typical ranges for Beverly and nearby cities, how local factors change the numbers, and ways to plan and save. Let’s dive in.
What closing costs include
Closing costs are the fees, taxes, and prepaid items needed to complete your sale or purchase beyond the price and down payment. They cover lender charges, attorney and title work, appraisal, recording fees, and prorations for taxes or HOA dues. Sellers also pay their attorney fee, mortgage payoffs, and broker commission.
- Buyers typically cover loan fees, appraisal, title search and title insurance, recording the mortgage, and prepaids for taxes and insurance.
- Sellers typically cover broker commission, their attorney fee, mortgage payoffs, prorated taxes, and deed recording fees. Sellers may also offer credits if negotiated.
Buyer costs in Massachusetts
Typical total for buyers
Most buyers in Massachusetts budget about 2% to 5% of the purchase price for closing costs, not including the down payment. As quick examples, a $600,000 purchase often means roughly $12,000 to $30,000 in closing costs. At $1,000,000, think about $20,000 to $50,000.
Buyer line items you can expect
- Loan origination or points. Lender fees vary. Ask for a Loan Estimate within three business days of application, which lenders must provide under federal rules. See the CFPB’s explanation of the Loan Estimate.
- Appraisal. Often about $450 to $900 or more, higher for unique, multi‑unit, or coastal properties.
- Inspections. A standard home inspection often runs $300 to $800. Specialty checks such as pest, sewer, septic, or oil tank may be additional.
- Title search and title insurance. You will pay for the lender’s title policy. An owner’s title policy is common but negotiated. Premiums scale with price.
- Attorney and settlement. Massachusetts closings are attorney led. Buyer attorney fees often range from $500 to $1,500+.
- Recording fees. Counties charge to record the mortgage and deed. These are typically a few hundred dollars.
- Escrows and prepaids. Lenders often collect a few months of property taxes and home insurance upfront, plus the first year of insurance.
- Mortgage insurance. PMI applies to many loans with less than 20% down. FHA and VA have their own insurance profiles.
- Condo and HOA items. Condo questionnaires, certificates, and prorated dues are common for condo purchases.
North Shore nuances for buyers
- Coastal homes. Flood insurance may be required if the property is in a flood zone. Expect higher insurance premiums and larger initial escrow deposits for these policies.
- Condos in Cambridge and Newton. Condo documents and lender condo reviews can add time and modest cost.
- Septic and well. Some outer areas of Essex County use private systems that may need inspection and potential repairs if issues exist.
Ways to lower your cash to close
- Shop lenders. Compare origination fees and rate‑point options on your Loan Estimate.
- Ask for a seller credit. Credits toward closing costs are common and negotiated, subject to loan program limits.
- Use lender credits. Some costs can be offset with a slightly higher interest rate.
- Explore assistance. State and local programs can help with down payment or closing costs. Review options through MassHousing.
- Know your timeline. Lenders must provide a Closing Disclosure at least three business days before closing, which shows your final cash to close. See the CFPB’s guide to the Closing Disclosure.
Seller costs in Massachusetts
Typical total for sellers
Most Massachusetts sellers plan for about 6% to 10% of the sale price. The broker commission is the largest single item for many sales. As examples, at $600,000 this often means $36,000 to $60,000 in total selling costs. At $1,200,000, plan for $72,000 to $120,000.
Seller line items you can expect
- Broker commission. Typically 5% to 6% of the sale price in many transactions.
- Attorney fees. Often $500 to $1,500+ depending on complexity.
- Mortgage payoff and liens. Includes per‑diem interest up to the closing date.
- Prorated property taxes and utilities. Adjusted to the day of closing.
- Deed recording and any local filing fees. Check with the local registry and municipality for exact schedules.
- Negotiated credits. You may agree to closing cost credits or repair credits to help the buyer’s financing.
Local factors for sellers
- Price point impact. Cambridge and Newton’s higher prices increase the dollar impact of percentage‑based costs. Beverly and many North Shore towns may show lower dollar totals even when percentages are similar.
- Condo resales. Expect HOA document requests and potential transfer or move‑in fees based on the association.
- Recording districts. Beverly and many nearby towns record at the Southern Essex District Registry. Cambridge, Newton, and Framingham record at Middlesex South. Fee schedules and processing can vary slightly by registry.
Protecting your net proceeds
- Calibrate pricing and marketing to attract strong demand. More demand often means fewer buyer requests for credits.
- Review commission structure and services. Balance savings with the value of proactive marketing and skilled negotiation.
- Request a seller’s net worksheet early. Your agent and attorney can update it as payoff figures and prorations firm up.
Recording in Essex vs Middlesex
Registries and fee checks
Recording fees in Massachusetts are set by the registries and can vary by district. For Beverly and many North Shore communities, review the Southern Essex District Registry at the Massachusetts Land Records portal for Salem. For Cambridge, Newton, and Framingham, use the Middlesex South page. Your attorney or closing agent will confirm the exact amounts and handle recording.
Required disclosures and timing
You should expect two key disclosures from your lender. The Loan Estimate arrives within three business days of loan application and outlines your projected costs. The Closing Disclosure arrives at least three business days before you sign and shows your final numbers. Learn more from the CFPB Loan Estimate overview and the CFPB Closing Disclosure overview.
Title insurance basics in Massachusetts
You will purchase the lender’s title insurance policy if you finance. The owner’s title insurance policy is common but not always required. Who pays for the owner’s policy varies by local custom. In some neighborhoods the buyer purchases it, in others the seller does. Confirm the norm in Beverly or Cambridge with your attorney and agent, then negotiate accordingly.
Assistance programs to explore
Massachusetts and many Greater Boston communities offer programs that can reduce your up‑front cash needs. Eligibility rules apply, and funding can change through the year. Start with MassHousing for statewide buyer resources, then ask your lender and attorney about city‑specific options that may apply to your purchase.
Quick budgeting examples
- $400,000 purchase. Buyer closing costs often range from about $8,000 to $20,000. Seller costs often range from about $24,000 to $40,000.
- $700,000 purchase. Buyer closing costs often range from about $14,000 to $35,000. Seller costs often range from about $42,000 to $70,000.
- $1,000,000 purchase. Buyer closing costs often range from about $20,000 to $50,000. Seller costs often range from about $60,000 to $100,000.
These examples reflect typical ranges. Actual figures depend on loan type, property specifics, and any negotiated credits.
What to do next
- If you are buying, ask two or three lenders for itemized Loan Estimates and compare total cash to close, not just the rate. Share your questions with your attorney early.
- If you are selling, request a detailed net sheet that includes commission, expected payoffs, prorated taxes, and recording fees. Update it as you move toward closing.
- For Beverly and the North Shore, check potential flood insurance and any coastal inspection needs early. For Cambridge, Newton, and Framingham, plan for condo document timing if applicable.
- Review the registry pages for your district to understand recording practices. Your attorney will give you exact final numbers on your Closing Disclosure and settlement statement a few days before closing.
If you want a clear, custom estimate for your situation, reach out to the North Shore team that blends boutique care with top‑tier results. Start a conversation with Annie McClelland to review your plan or request a home valuation.
FAQs
How much should a Massachusetts buyer budget for closing costs?
- Most buyers should plan for about 2% to 5% of the purchase price, not including the down payment. Your Loan Estimate will show your projected total.
What do Massachusetts sellers typically pay at closing?
- Sellers usually pay broker commission, their attorney, mortgage payoffs, prorated taxes, deed recording, and any negotiated buyer credits. Totals often land near 6% to 10% of the sale price.
Who pays for title insurance in Massachusetts?
- Buyers typically pay for the lender’s policy. The owner’s policy varies by local custom, sometimes paid by the buyer, sometimes by the seller. Confirm with your attorney and agent.
When will I know my exact cash to close?
- Your lender must deliver a Closing Disclosure at least three business days before you sign, which lists exact cash to close. Sellers receive a settlement statement with final net proceeds.
Can I roll closing costs into my mortgage?
- Some costs can be offset by lender credits in exchange for a higher rate, and certain fees may be financed based on program rules. Down payments and many third‑party fees cannot be rolled in.
Are there programs to help with closing costs on the North Shore?
- Yes. State and local programs exist, including resources from MassHousing. Eligibility and funding vary, so ask your lender and attorney to review options for your city.
