Buyer’s Agent Fee: $10,375–$12,450
In the past, sellers covered both the listing agent and the buyer’s agent fees. However, following a landmark court settlement by the National Association of Realtors, buyers are now expected to negotiate compensation directly with their own agents. If you’re offering to pay this fee to attract buyers, on a $415,000 median-priced Maryland home, you can expect to pay $10,375–$12,450.
Detailed Closing Costs: $15,355
Closing costs in Maryland average about 3.7% of the home’s sale price, higher than in many other U.S. states. On a median-priced home of $415,000, you might pay $15,355. Below are some of the typical types of closing costs you can expect:
- Home Preparations: This can include improving the home’s curb appeal, which means landscaping, deep cleaning the interior, or staging the property.
- Renovations/Repairs: You’ll want to fix or update your property to keep pace with inspection queries or market demand.
- Title Service Fees: Title company work is required to verify legal ownership and help manage the property transfer. The buyer typically pays for this in Maryland, but sellers can offer to do so as a concession.
- Owner’s Title Insurance: A one-time insurance premium that is usually paid by the seller to protect the buyer from title issues or ownership disputes. The buyer and seller in Maryland traditionally split this.
- Transfer Taxes: Transfer taxes are traditionally split between the buyer and seller in Maryland, which levies a tax of .5 percent of the actual consideration, unless they are a first-time Maryland home buyer purchasing a principal place of residence, in which case the transfer tax rate is instead .25 percent of the actual consideration. (See more below.)
- Recording Fees: Fees paid to the local government to officially record the change in property ownership.
- Buyer Incentives: Credits or concessions you might offer buyers, such as paying the buyer’s agent fees or offering a rate buydown.
- Other Costs: Miscellaneous expenses not covered in other categories, such as attorney fees and HOA transfers. (An attorney is not required to sell a house in Maryland.)
- Moving Expenses: While not technically a closing cost, you should include this expense in your budget, which can range from $883 to $7,000.
In Maryland, both the buyer and the seller of a property are responsible for paying transfer taxes. However, home sellers can offer to pay for this as a concession for buyers. Our calculator assumes a 50/50 split.
At the state level, Maryland’s transfer tax is levied at a rate of .5% of the property’s purchase price (or actual consideration). Additional rates may vary by county.
However, first-time home buyers in the state who are purchasing a primary place of residence in Maryland are eligible to be taxed at a rate of .25%. First-time home buyers are required to submit an exemption form to determine eligibility.
In addition, a Recordation Tax is charged on any property sale at $4.10 per $500. This increases to 1.35% of the property sale for transactions over $500,000.
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