Boston Closing Costs in Massachusetts: Buyer Guide

You know you need a down payment, but how much extra cash will you actually need to close on a Boston home? The add-ons can feel murky when you are trying to plan a budget. You want clear numbers, realistic timing, and zero surprises on closing day. This guide gives you straightforward ranges, Boston norms, and simple checklists so you can plan with confidence. Let’s dive in.

What Boston buyers typically pay

Closing costs in Massachusetts usually run 2% to 5% of the purchase price for buyers, not including your down payment. That range covers lender fees, appraisal, inspections, title work and title insurance, attorney fees, recording, and prepaids like taxes and insurance.

Here are quick examples to help you budget:

$500,000 home: about $10,000 to $25,000 in buyer closing costs
$750,000 home: about $15,000 to $37,500
$1,000,000 home: about $20,000 to $50,000

These figures exclude your down payment and any credits negotiated with the seller.

Buyer closing cost breakdown

Earnest money deposit

Your earnest money is a good faith deposit that shows commitment when your offer is accepted. In Boston, it often ranges from a fixed amount to 1% to 2% of the price in competitive situations. It is held in escrow and later credited to you at closing. Confirm who holds the funds and the contingencies that protect you.

Loan and lender fees

If you are financing, budget for lender costs like application, underwriting, and processing. Combined lender fees commonly fall in the $500 to $3,000 range, depending on the lender and loan type. You will also pay a small credit report fee, usually under $50 to $75. Some buyers trade slightly higher rates for lender credits to offset these fees.

Appraisal

Most lenders require an appraisal. Plan for $400 to $900 for a standard single-family appraisal in Boston. Complex or higher value properties may cost more. Your lender typically orders the appraisal after loan application.

Home inspection and specialized inspections

A standard home inspection usually runs $300 to $800, depending on size and scope. You may add specialized inspections for things like pests, radon, sewer, oil tank, or mold, each often a few hundred dollars. You pay these out of pocket during the inspection period.

Title search and title insurance

The title attorney or title company will research ownership and liens and issue title insurance policies. Lenders typically require a lender’s policy, which buyers usually pay for in Boston. An owner’s title policy is common and can be negotiated. Combined title premiums in Massachusetts are typically several hundred to a few thousand dollars, with additional search or exam fees often a few hundred dollars.

Attorney fees

In Massachusetts, both buyers and sellers commonly retain attorneys to review the purchase and sale agreement, clear title, and conduct the closing. For straightforward deals, plan $800 to $2,500 for your attorney. Complex cases can cost more.

Recording and municipal fees

Plan for recording the deed and mortgage, plus required municipal documents. These are generally modest compared with other costs, often $50 to $300 for recording. Municipal certificates, such as a municipal lien certificate or a condo estoppel, can add $100 to $500.

Transfer or excise taxes

Transfer or conveyance tax responsibility varies by state and locality. In Massachusetts, rules and local practice can vary, and responsibility may be set by contract. Confirm current Boston and Suffolk County norms and who pays in your specific deal.

Prepaids and escrow accounts

Your lender may collect prepaids for property taxes and homeowners insurance and set up escrow reserves. Expect a few hundred to several thousand dollars, depending on closing date, tax cycles, and your annual insurance premium. You will also prepay daily mortgage interest from the closing date to month end.

Condo or co-op fees

Boston has many condos, and associations often charge for documents and transfers. Budget $100 to $500+ for items like a condo questionnaire, resale certificate, or transfer fee. Responsibility can vary by building rules and negotiation.

Survey, flood cert, and other searches

A survey may be requested by your lender and can range $300 to $1,000+, depending on property type and complexity. Flood certification and other due diligence searches are typically modest, often under $100 to $200.

When you pay what

Earnest money timeline

Your earnest money is typically due within 24 to 72 hours of offer acceptance, as stated in the contract. It is held in escrow and credited to you at closing. Make sure you understand the contingency timelines that protect this deposit.

Inspection and mortgage milestones

Inspections usually occur within about 7 to 10 days after acceptance. You pay inspection fees when scheduled. After the contract is executed, apply for your loan and expect appraisal and underwriting to take 2 to 4 weeks, depending on the file.

Closing Disclosure and final cash to close

Federal rules require that your lender deliver the Closing Disclosure to you at least 3 business days before closing. This document shows your final closing costs and the exact cash you need to bring. Review it carefully with your attorney and lender so you can wire the correct amount.

Wiring funds and day of closing

Final funds are usually wired one business day before closing or the morning of closing. Always verify wire instructions by phone using a known, trusted number because wire fraud schemes target real estate transactions. On closing day, you sign documents, the deed is recorded, the lender funds the loan, and keys are delivered per your contract.

Ways to trim out-of-pocket costs

Negotiate a seller credit toward your closing costs.
Shop lenders for lower origination fees or ask about lender credits.
Consider trading a slightly higher rate for lower upfront costs, if it fits your goals.
Ask the seller to pay for the owner’s title policy if it helps balance the deal.

Seller costs at a glance

For context, sellers in Massachusetts often budget 6% to 9% of the sale price for closing costs. The largest line is the real estate commission, commonly 5% to 6% combined, plus attorney fees, prorations, and any concessions. Exact costs depend on the contract and the property’s specifics.

Quick budgeting checklist

Use a 2% to 5% buyer closing cost range plus down payment to set your initial cash goal.
Plug in sample ranges for your price point, for example: $500k: $10k to $25k, $750k: $15k to $37.5k, $1M: $20k to $50k.
List key line items: earnest money, appraisal, inspection, lender fees, title and attorney, recording and municipal fees, prepaids and escrow, condo fees if applicable.
Track timing: earnest money at acceptance, inspections in the first week or two, Closing Disclosure 3 business days before closing, wire final funds just before closing.
Stay safe: verify wiring instructions by phone, confirm where escrow funds are held, and keep receipts.

Local norms to know

In Massachusetts, it is customary for both buyers and sellers to have attorneys involved and for closings to be attorney conducted.
Buyers typically pay for the lender’s title policy when using a mortgage. Payment of the owner’s policy is negotiable and should be stated in the purchase and sale agreement.
Earnest money amounts trend higher in competitive Boston markets. Size your deposit with your attorney’s guidance and confirm how contingencies protect you.
Condo purchases often include association document fees and may have timing requirements. Coordinate your condo document review with your lender’s timeline.

Ready to run real numbers?

If you are planning a Boston purchase, we will help you translate these ranges into a clear, property-specific estimate, including timing, cash to close, and negotiation strategies that fit your goals. Reach out and we will walk you through your line items before you ever wire a dollar. Let’s talk next steps with David Gordon.

FAQs

How much are buyer closing costs in Boston, MA?

Most buyers should budget 2% to 5% of the purchase price for closing costs, excluding the down payment, with exact totals based on lender, property type, and timing.

When will I know my exact cash to close in Massachusetts?

Your lender must deliver a Closing Disclosure at least 3 business days before closing that shows your final figures, which you should review with your attorney.

What is a typical Boston earnest money deposit?

Earnest money often ranges from a fixed amount to 1% to 2% of the price in competitive markets and is credited to you at closing if you complete the purchase.

Who pays title insurance in Boston closings?

Buyers typically pay for the lender’s policy when using a mortgage, and the owner’s title policy is common but negotiable, so confirm responsibility in the purchase and sale agreement.

Are there transfer or excise taxes for Boston home purchases?

Transfer or conveyance tax rules and who pays can vary by locality and contract, so confirm current Boston and Suffolk County practice for your transaction with your attorney.

What condo-specific fees should I expect in Boston?

Condo transactions often include association document, estoppel, or transfer fees that commonly run $100 to $500+, with responsibility set by the association rules and negotiation.