Buying or selling a home in Alexandria comes with more than the purchase price. Closing costs can surprise you if you have not seen a settlement statement before. You want a clear picture of who pays what, how much to budget, and how these fees work in Virginia. In this guide, you will learn the typical buyer and seller costs in Alexandria, what is negotiable, and how to plan with confidence. Let’s dive in.
Closing costs in Virginia: the basics
Closing costs are the third-party fees, taxes, prepaid items, and prorations due at settlement. They are separate from your down payment and the price of the home. In Virginia, there is no single statewide rule that forces one party to pay specific costs. Instead, many items are negotiable and set by your purchase contract.
Local custom matters. In Northern Virginia, sellers commonly pay the owner’s title insurance policy and real estate commissions, while buyers usually cover lender-related fees and the lender’s title insurance. Your lender requirements and the contract will guide final allocation.
Who typically pays in Alexandria
Buyer-paid items
- Lender fees. Origination, underwriting, processing, and application fees are usually paid by the buyer.
- Discount points. Optional points to reduce your interest rate, if you choose to buy them.
- Appraisal and credit report. Lender-ordered appraisal and credit pulls are typically buyer costs.
- Lender’s title insurance. Protects the lender’s interest and is usually buyer paid when financing.
- Recording fees for the mortgage. Fees to record the deed of trust are typically buyer costs.
- Prepaid taxes and insurance. You may fund an escrow account at closing, based on your closing date and lender rules.
- HOA or condo application and move-in fees. Often buyer paid, but practices vary by building and contract.
- Inspections and surveys. Home, pest, or termite inspections and any lender-required survey are commonly buyer costs.
- Upfront mortgage insurance. If your loan program requires an upfront premium, this is typically a buyer cost.
Seller-paid items
- Real estate commissions. Customarily paid by the seller and often the largest seller expense. The exact amount is negotiated.
- Owner’s title insurance policy. In Northern Virginia, sellers commonly provide and pay for the owner’s policy, though it can be negotiated.
- Transfer and recordation taxes. Virginia imposes deed transfer and recordation taxes. Who pays can be negotiated, though sellers often cover at least part of the deed transfer tax in many Northern Virginia transactions.
- Prorated property taxes. The seller pays their share of taxes up to the closing date.
- Repairs and credits. Any repairs or credits agreed to in the contract.
- HOA transfer or document fees. Some associations charge transfer or document fees that are often seller paid, depending on the HOA’s rules.
- Recording and payoff fees. Costs to record the deed and release the seller’s mortgage, if applicable.
Negotiable or shared items
- Settlement or escrow fee. Often split, buyer paid, or seller paid based on local practice and contract.
- Documentary and conveyance taxes. Allocation is commonly negotiated.
- Surveys and HOA estoppel fees. Terms vary by contract and association rules.
Alexandria specifics: taxes, prorations, timing
Virginia charges documentary and recordation taxes when deeds and mortgages are recorded. The City of Alexandria also has local components that apply at recording. These taxes are mandatory, and the contract sets who pays which portions.
Property taxes are prorated at closing. The seller pays taxes up to the closing date, and the buyer pays from the closing date forward. If tax bills are paid semi-annually or annually, you will see prorations as credits and debits on the settlement statement.
Sellers must clear any outstanding municipal charges or liens, such as code enforcement items or unpaid utilities. Condos and associations in Alexandria may charge transfer or administrative fees and require estoppel letters. Build the HOA document timelines and fees into your closing plan.
For exact rates and current dollar amounts, ask your title company or the City of Alexandria offices. Local taxes, recording fees, and title premiums change from time to time.
What it might cost: ranges and examples
For buyers, a common range is about 2% to 5% of the purchase price. This includes lender fees, title and recording, prepaids, and escrow deposits. The higher end often reflects discount points, larger escrow requirements, or higher taxes.
For sellers, non-commission costs often total about 1% to 3% of the price, plus real estate commissions, which are typically the largest line item and are negotiated. Sellers in Northern Virginia also commonly pay for the owner’s title policy.
Illustrative scenario A: single-family home at $700,000
- Buyer estimate at 2.5%: about $17,500 for lender fees, escrows, title, recording, inspections, and prepaids.
- Seller commission at 6%: $42,000, plus an estimated owner’s title policy around 0.5% (about $3,500), prorated taxes, and transfer or recordation taxes. Total seller costs, excluding any mortgage payoff, could be roughly 6.5% or more.
Illustrative scenario B: condominium at $450,000
- Buyer may also see HOA application or estoppel fees that can range a few hundred dollars, plus lender fees and prepaids.
- Seller commonly covers the owner’s title policy and commission; association transfer fees may vary by building.
These figures are examples only. Your loan type, closing date, tax cycle, and the contract will drive your actual numbers. Ask your lender for a Loan Estimate and your title company for draft settlement figures to dial in your budget.
How to budget and avoid surprises
Use this step-by-step checklist to prepare:
- Ask your lender for a detailed Loan Estimate and an explanation of any fees, points, and required escrow deposits.
- Review your Closing Disclosure at least three business days before closing so you can confirm final figures.
- Request a preliminary settlement statement or seller net sheet from your title company early in the process.
- Confirm who pays each of the following in your contract: owner’s title policy, lender’s title policy, settlement fee, transfer and recordation taxes, prorated property taxes, and any HOA transfer or estoppel fees.
- If selling, verify your mortgage payoff and check for any prepayment penalties.
- Confirm HOA document turnaround times and any application or move-in requirements.
- Pull recent tax bills, confirm proration method, and note the next due date.
- Ask your agent or title company to check for special assessments or municipal liens and clear them prior to closing.
- If buying with a loan, line up homeowners insurance so the policy is effective on your closing date.
Timeline tips for a smooth Alexandria closing
- Order HOA or condo documents as soon as your contract is ratified since associations set their own delivery timelines and fees.
- Schedule inspections early so there is time for repair negotiations or credits if needed.
- Coordinate with your lender on appraisal timing and any final conditions that could affect closing.
- Keep communication open among your agent, lender, and title company to confirm taxes, transfer costs, and recording requirements.
Work with local guidance you can trust
Clear expectations about closing costs lead to fewer surprises and a calmer closing. If you would like help reviewing your estimate or understanding local custom in Alexandria, reach out to Conor Sullivan for a concise, step-by-step plan tailored to your goals.
FAQs
How much are buyer closing costs in Alexandria?
- Plan for about 2% to 5% of the purchase price, excluding your down payment. Your loan type, lender fees, escrow deposits, and any negotiated concessions will affect the final amount.
In Virginia, does the seller pay transfer taxes?
- Virginia charges transfer and recordation taxes when deeds and mortgages are recorded. Who pays is negotiable, though sellers often cover at least part of the deed transfer tax in many Northern Virginia deals. Confirm your contract and title estimate.
Who usually pays the owner’s title policy in Alexandria?
- In Northern Virginia, sellers commonly pay for the owner’s title insurance policy. This is a custom, not a law, so confirm the allocation in your contract.
Are real estate commissions always paid by the seller?
- Commission is typically paid by the seller from sale proceeds under local custom, but parties can negotiate other arrangements in specific situations.
Can buyers roll closing costs into the mortgage?
- Some costs can be offset by lender credits or seller concessions. Whether certain fees can be financed depends on the loan program, loan-to-value, and lender rules. Talk with your lender about options.
