How Are Closing Costs Calculated?

✍️ How Are Closing Costs Calculated?

When it comes to buying or selling a home, closing costs are often the least exciting—but most important—part of the transaction. So how exactly are they calculated?

Closing costs are the fees and expenses, beyond the sale price, paid at the end of a real estate transaction. These can include lender fees, title insurance, escrow charges, transfer taxes, and prepaid items like property taxes or homeowners insurance. In Las Vegas, these costs typically range from 2% to 5% of the purchase price.

👉For Buyers:

Buyers often shoulder the larger share of closing costs. You’ll usually see loan origination fees, appraisal and inspection costs, escrow fees, and prorated taxes. While some of these are negotiable, most are determined by the lender, title company, or county regulations.

👉For Sellers:

Sellers are typically responsible for paying the commission (split between both agents), the transfer tax, and in some cases, a portion of the escrow fee. If the buyer is using down payment assistance or has asked for a credit, the seller might also be covering some of the buyer’s costs.

👉What This Means for Me—as Your Las Vegas Realtor:

I help clients navigate these numbers with clarity. I’ll give you a breakdown before you’re even in escrow, so there are no surprises later. I work with trusted local partners to ensure costs are fair, accurate, and explained clearly, so whether you're buying your dream home or cashing out to move on, you’re never left in the dark.