What’s Included in Closing Costs (and How to Estimate Yours)

Understanding Closing Costs Doesn’t Have to Be Stressful

Closing costs are one of those parts of buying or selling a home that nobody really talks about until you’re in the middle of it. And then suddenly — surprise — there are fees and numbers you didn’t expect.

The good news? Once you understand what closing costs are, everything feels much more manageable.

So… what exactly are closing costs?

Think of closing costs as all the behind-the-scenes work required to legally transfer a home from one person to another. It’s everything from paperwork and title work to inspections, lender requirements, escrow setup, and recording the deed.

Your exact amount will vary based on the home price, the lender, and even the title company — but here’s what’s typical in the St. Louis area.

If You’re Buying

Most buyers in St. Louis can expect closing costs around 2%–4% of the purchase price on a median-priced home (around $300,000).
Higher-priced homes often see a smaller percentage because many closing cost components are fixed rather than tied to the sale price.

Buyer closing costs usually include:

• Appraisal
• Title insurance
• Lender fees
• Recording fees
• Homeowner’s insurance
• Prepaid interest
• Escrow setup for taxes and insurance (if required by the lender or chosen by the buyer)
  

What about property taxes?

At closing, buyers typically receive a credit from the seller for the seller’s portion of prorated property taxes from January 1 through the day of closing. Buyers don’t pay the seller’s tax portion — they just take over from that date forward.

What buyers do need to plan for is funding their escrow account (if their lender requires one), which covers future taxes and insurance.

Your lender will give you a detailed breakdown early in the process so you can plan with confidence.

If You’re Selling

Seller closing costs look different and generally include:

• Title fees
• Agent compensation
• Any required municipal inspections
• Mortgage/loan payoff
• HOA dues or prorations (if applicable)
• Prorated property taxes from January 1 through the day you transfer ownership to the buyer
  
  

We walk our sellers through a clear net sheet before the home ever hits the market, so there are zero surprises when closing day arrives.

Can closing costs be negotiated?

Sometimes — but not in the way most people assume.

The actual fees themselves (title fees, lender fees, escrow amounts, etc.) are fairly fixed. Different companies may vary slightly, but you’re not usually going to see huge swings.

What can be negotiated is who pays what.

For example:

• Can the buyer ask the seller to cover some of their costs? Sometimes — depends on the market.
• Can the seller ask the buyer to cover certain fees? Also possible — if the home and market conditions allow.

Negotiability comes down to strategy, timing, and how competitive the situation is. Some St. Louis neighborhoods move fast with multiple offers, while others give buyers a bit more room to request concessions.

This is where a strong agent can make a big difference — knowing when an ask will help and when it might hurt your chances.

Want a clearer idea of what closing costs might look like for your situation?

We can walk you through a general estimate based on your price point and connect you with local lenders and title companies who can give exact, personalized numbers.

No guesswork. No overwhelm. Just clarity.