Closing costs in DC, Maryland, and Virginia can vary significantly. This guide breaks down what buyers and sellers should expect to pay at the settlement table in the DMV.
Closing Costs Catch People Off Guard
You've got your down payment. You've been pre-approved. You think you know what you're spending.
Then you get your Closing Disclosure and there's $12,000 in costs you weren't fully prepared for.
This happens every week in the DMV. Closing costs in DC, Maryland, and Virginia vary significantly — both in amount and in who typically pays what. Here's the breakdown you need.
Virginia Closing Costs
For buyers in Virginia, typical closing costs run 2–3% of the purchase price. On a $600,000 home, that's $12,000–$18,000.
What you're paying for:
- Lender fees — origination, underwriting, appraisal, credit report
- Prepaid items — homeowners insurance, prepaid interest, initial escrow deposit
- Title charges — owner's title insurance, lender's title insurance, settlement fee, title search
- Government fees — recording fees (typically $25–$50 per document)
- State taxes — Virginia's Grantor's Tax of $0.10 per $100 of value, typically paid by the seller
For sellers in Virginia, closing costs typically run 1–3% for title/transfer costs (plus real estate commission).
Maryland Closing Costs
Maryland is known for having some of the highest transfer taxes in the region.
State transfer tax: 0.5% of the purchase price (first-time buyers get a reduced rate).
County transfer tax: Varies by county — Montgomery County charges 1%, Prince George's charges 1.4%.
Recordation tax: Typically $6.90–$10 per $1,000 depending on the county.
On a $700,000 home in Montgomery County, the combined state and county transfer taxes alone can exceed $10,000.
For buyers in Maryland, total closing costs typically run 3–5% of purchase price.
First-time homebuyer exemption: Maryland offers a partial state transfer tax exemption for first-time buyers — the seller typically picks up the full state transfer tax in these transactions.
DC Closing Costs
DC has the highest transfer taxes in the DMV — and they apply to both buyer and seller.
DC transfer tax (buyer pays): 1.1% on purchases under $400,000; 1.45% above that.
DC recordation tax (seller pays): 1.1% under $400,000; 1.45% above.
On a $900,000 DC condo, the buyer and seller are each paying roughly $13,000 in transfer taxes alone.
DC first-time buyer exemption: DC offers an exemption from the recordation tax for first-time buyers purchasing a primary residence under certain income thresholds. Check with your title company to see if you qualify.
Negotiating Seller Concessions
In all three jurisdictions, buyers can negotiate seller concessions — a credit at closing that offsets closing costs.
This is especially common when:
- The market is slower (more inventory, longer DOM)
- The buyer is using FHA or VA financing
- The seller is motivated to close quickly
Seller concessions are capped by loan type: FHA allows up to 6%, VA up to 4%, conventional varies by LTV.
How to Prepare
Get a Loan Estimate early. Your lender is required to provide one within 3 business days of your application. Read it carefully.
Ask your title company for a settlement estimate. A good title company can give you a preliminary settlement statement weeks before closing so there are no surprises.
Budget more than you think you need. 3–5% of purchase price is a reasonable cushion.
The DMV is an expensive market to buy in. Understanding your closing costs before you make an offer makes the whole process less stressful — and helps you negotiate smarter.
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Pruitt Title serves buyers, sellers, and lenders across Virginia, Maryland, and Washington, DC. We make closing simple.
