Sticker shock at the closing table is preventable. If you are buying or selling in Centerville, you can map out your costs early and avoid surprises. In this guide, you will learn what closing costs include, who typically pays which fees in Montgomery County, how credits and concessions change the math, and simple ways to budget with confidence. Let’s dive in.
What closing costs include
Closing costs are the one-time fees and prepaid items due when the sale and loan close. They are not your monthly mortgage payment. Typical items include lender fees, title and settlement charges, appraisal and inspections, recording fees, transfer or conveyance fees, prepaid taxes and insurance, and prorations for items like property taxes or HOA dues.
For sellers, closing costs also include the real estate commission and the payoff of any existing mortgage or liens. These items make up the bulk of seller-side costs in most sales.
Typical ranges in Centerville
For planning purposes, buyers often see total closing and loan-related costs of about 2% to 5% of the purchase price. This excludes the down payment. Your actual total depends on your loan type, rate buydowns, and prepaid escrows for taxes and insurance.
Sellers commonly budget 6% to 10% of the sale price when the commission is included. Without the commission, other seller-side closing items are often 1% to 3%. Commission rates are always negotiated between you and your listing brokerage.
Who pays what in Centerville
Local customs can vary by county and even by neighborhood. Centerville follows typical Midwestern practices. Always confirm with your lender and title company.
Buyer-paid items
- Loan origination, application, underwriting, and processing fees
- Mortgage points or rate buydowns if you choose them
- Appraisal and credit report fees
- Lender’s title insurance policy when there is a mortgage
- Title search and many settlement or escrow charges, sometimes split by agreement
- Recording fees for the mortgage; deed recording may be split or paid by seller
- Prepaid homeowner’s insurance and initial tax and insurance escrows
- Home, pest, and radon inspections
- Survey if required and not provided by the seller
Seller-paid items
- Real estate commission, negotiated and often the largest seller expense
- Payoff of existing mortgage(s) and any liens
- Owner’s title insurance policy is often paid by the seller in many Ohio deals, but this is negotiable
- County conveyance or transfer taxes and related fees, subject to local custom
- Prorated property taxes and any HOA dues for the period before closing
- Seller concessions if agreed in the contract
- Attorney or additional closing fees if used, sometimes split by agreement
Shared and prorated items
- Property taxes and HOA dues are prorated at closing based on the closing date
- Deed recording fees may be split or paid by seller, and customs can vary
Concessions and credits
Seller concessions are credits that help cover a buyer’s closing costs, prepaid items, or rate buydowns. They reduce the buyer’s cash to close and reduce the seller’s net by the same amount. Concessions are negotiated in the offer and depend on market conditions, property condition, and financing.
Loan programs cap concessions differently. FHA commonly allows seller concessions up to 6% of the sale price. Conventional loans set limits based on down payment and occupancy, often ranging from about 3% to higher tiers with larger down payments. VA allows seller-paid items with program-specific rules, and USDA has its own guidelines. Always confirm caps and allowed items with your lender.
Here is a quick example. On a $350,000 sale, a 3% seller concession equals a $10,500 credit to the buyer. The buyer’s cash to close drops by $10,500, and the seller’s net proceeds drop by the same amount.
Sample cost scenarios
These examples are for planning only. Your final figures come from your lender and title company.
Example A — $250,000 home
- Buyer closing costs:
- Low estimate at 2%: $5,000
- Mid estimate at 4%: $10,000
- Seller costs:
- Commission at 5.5%: $13,750
- Other seller closing items at 1.5%: $3,750
- Estimated seller total: about $17,500 to $20,000
Example B — $350,000 home
- Buyer closing costs:
- 2%: $7,000
- 4%: $14,000
- Seller costs:
- Commission at 5.5%: $19,250
- Other items at 1.5%: $5,250
- Estimated seller total: about $24,500 to $28,000
Example C — $500,000 home
- Buyer closing costs:
- 2%: $10,000
- 4%: $20,000
- Seller costs:
- Commission at 5.5%: $27,500
- Other items at 1.5%: $7,500
- Estimated seller total: about $35,000 to $40,000
These examples show two important things. Commission is often the largest seller expense. Buyer closing costs vary with loan type, points, and whether you negotiate seller credits.
Local steps and fee checks
Final figures depend on current county schedules and your specific contract. To verify amounts and who customarily pays each fee in Montgomery County, do the following:
- Contact the Montgomery County Recorder for current recording fees for deeds and mortgages
- Check with the Montgomery County Auditor or Treasurer for property tax rates, proration rules, and any conveyance or transfer fees
- Ask your Centerville title company for a fee sheet, title insurance premiums, and how owner’s title policy is typically handled locally
- Verify any city-level requirements with Centerville’s municipal offices, including final utility readings and transfer forms if needed
Centerville buyer checklist
- Request a Loan Estimate within three business days of your mortgage application
- Ask your title company for a preliminary Closing Disclosure so you can budget accurately
- Set aside extra funds for prepaid escrows, moving costs, and upfront items like appraisal and inspections
- If you want help with costs, include a specific seller credit in your offer and confirm it is allowed by your loan program
Centerville seller checklist
- Ask for a detailed net proceeds estimate that includes commission, payoff, prorations, and estimated title and recording fees
- Confirm local custom for who pays the owner’s title policy since this can shift your bottom line
- Consider concessions strategically based on market conditions and your timeline
- Review your draft Closing Disclosure early to confirm prorations and credits are correct
Make your numbers clear
You should not have to guess at your closing costs. We can pull a clear net sheet for your Centerville sale, coordinate a fee quote with a local title company, and connect you with lenders who provide fast Loan Estimates. If you are using a VA, FHA, or USDA loan, we will help you structure credits that fit program rules. If you are relocating or buying from out of state, we will handle video walk-throughs, inspections, and a smooth, remote-friendly closing.
Ready to see your numbers? Reach out to Megan Reed for a no-pressure plan tailored to your Centerville purchase or sale.
FAQs
What are typical buyer closing costs in Centerville?
- Buyers often budget about 2% to 5% of the purchase price for lender fees, title and settlement charges, appraisal, recording, and prepaid escrows.
Who pays for owner’s title insurance in Montgomery County?
- In many Ohio transactions the seller pays the owner’s title policy, but this is negotiable and should be confirmed with your title company.
How do property tax prorations work at closing in Ohio?
- Taxes are prorated to the closing date, with the seller covering days they owned the home and the buyer covering days after closing.
What seller concessions are common in Centerville deals?
- Credits toward buyer closing costs, prepaid escrows, rate buydowns, or repairs are common, and the amount depends on market conditions and loan rules.
How much can a seller pay toward buyer costs for FHA, VA, or conventional?
- FHA commonly allows up to 6%, VA and conventional have program-specific limits, and you should verify the exact cap with your lender.
What upfront costs should buyers expect before closing?
- Appraisal, inspections, and the earnest money deposit are typical upfront items, with remaining costs and prepaids settled at closing.
Are closing costs different for VA buyers in Centerville?
- The mix of allowed fees and seller-paid items can differ with VA loans, so confirm specifics early with your lender and title company to structure credits correctly.
