Real Estate Closing Costs by State: Retail vs Investment Deals Compared

This guide is part of our state-by-state transaction guide.

Closing costs are one of the most underestimated line items in deal analysis. New investors look at the purchase price, estimate repairs, calculate the ARV, and forget to account for $3,000-$8,000 in closing costs that eat directly into their profit. Worse, closing costs vary dramatically by state -- a $150,000 deal in Texas has a fundamentally different cost structure than the same deal in Pennsylvania or Connecticut. And investment deals have a different closing cost profile than retail transactions, mostly in your favor.

This guide breaks down every category of closing costs, compares them across states, and shows you exactly how investment deals differ from retail.

Closing cost categories

Before we compare states, you need to understand what makes up closing costs. Every closing involves some combination of these components.

Transfer tax (also called deed tax, documentary stamp tax, excise tax)

This is a tax imposed by the state, county, or city on the transfer of real property. It is calculated as a percentage of the purchase price or a flat amount per dollar of value. Transfer taxes are the single biggest variable in closing costs between states. Some states have no transfer tax at all. Others charge 1-2% or more.

Recording fees

The county recorder charges a fee to record the new deed, mortgage (if any), and other documents in the public record. Recording fees are typically $50-$300 and are relatively consistent across states. They are a minor cost in the overall picture.

Title insurance

A one-time premium for the owner's title insurance policy (and the lender's policy, if financing). Title insurance costs vary by state and purchase price, typically $400-$1,200 for a $150,000 property. See our detailed guide to title insurance for who pays in each state.

Settlement/closing fee

The fee charged by the title company, escrow company, or closing attorney for coordinating the closing. This covers document preparation, escrow management, and closing facilitation. Typically $300-$1,000 depending on the closing entity and transaction complexity. See our guide to closing methods for how this varies by closing type.

Attorney fees

In attorney closing states, you pay an attorney to handle the closing. This may be a flat fee ($500-$1,500) or an hourly rate. In non-attorney states, you may still choose to have an attorney review your contract, which is an additional but separate cost.

Survey

A property survey confirms the boundaries and identifies encroachments. Not required in all states or all transactions. When required, costs $300-$500 for a residential property. Some title companies accept an existing survey if it is recent enough (within 5-10 years) and the property has not been modified.

Prorations

Property taxes, HOA dues, and sometimes insurance are prorated between buyer and seller based on the closing date. If the seller has prepaid property taxes through December and you close in September, you reimburse the seller for October-December. If the seller owes back taxes, those are deducted from their proceeds. Prorations are not a "cost" per se -- they are an adjustment -- but they affect the cash you need at closing.

Agent commissions (retail only)

In a retail transaction with real estate agents, the seller typically pays a listing agent commission (2.5-3% of the sale price). Since the 2024 NAR settlement, buyer agent commissions are no longer automatically offered by the seller and are negotiated separately. In off-market investment deals, there are no agent commissions -- which saves the seller 5-6% compared to a retail sale.

Transfer tax comparison by state

Transfer tax is where the real money is. Here is how the major investor markets stack up.

No transfer tax

These states impose no state-level transfer tax on real property transfers. For investors who buy and sell frequently, this is a meaningful cost advantage.

• Texas
• Indiana
• North Dakota
• Arizona
• Idaho, Kansas, Louisiana, Mississippi, Missouri, Montana, New Mexico, Utah, Wyoming

In these states, closing costs are primarily title insurance, settlement fees, and recording fees. For a $150,000 cash purchase, total closing costs (excluding prorations) are often $1,500-$3,000.

Low transfer tax

• Ohio: Conveyance fee of $1 per $1,000 at the state level, plus county fees that vary. Total typically $2-$4 per $1,000. On a $150,000 property: $300-$600.
• Oklahoma: $0.75 per $500 of value ($1.50 per $1,000). On $150,000: $225.
• Nebraska: Documentary stamp tax of $2.25 per $1,000. On $150,000: $337.50.
• Oregon: $1 per $1,000 for sales under $500K (higher tiers for more expensive properties). On $150,000: $150.
• North Carolina: Excise tax of $1 per $500 ($2 per $1,000). On $150,000: $300.
• Kentucky: $0.50 per $500 ($1 per $1,000). On $150,000: $150.

Medium transfer tax

• Florida: Documentary stamp tax of $0.70 per $100 ($7 per $1,000). On $150,000: $1,050. Miami-Dade County adds a discretionary surtax of $0.45 per $100 on top, making total transfer tax $1,725 on a $150,000 sale in Miami-Dade.
• Tennessee: Transfer tax of $0.37 per $100 ($3.70 per $1,000). On $150,000: $555.
• Georgia: Transfer tax of $1 per $1,000. On $150,000: $150. Additionally, there is an intangibles tax on new mortgages ($1.50 per $500 of debt), which does not apply to cash purchases.
• South Carolina: Deed recording fee of $1.85 per $500 ($3.70 per $1,000). On $150,000: $555.
• California: Documentary transfer tax of $1.10 per $1,000 at the county level. Some cities add their own tax on top (Los Angeles: $4.50 per $1,000, San Francisco: much higher). On a $150,000 property in most California counties: $165. In LA: $840 total.
• Wisconsin: Transfer fee of $3 per $1,000. On $150,000: $450.

High transfer tax

• Pennsylvania: 2% transfer tax split between state (1%) and local (typically 1%). On $150,000: $3,000. This is one of the highest transfer taxes in the country and is a major factor in Pennsylvania closing costs. The tax is customarily split between buyer and seller.
• Connecticut: 0.75% for most sales, 1.25% for sales over $800K. On $150,000: $1,125. Connecticut also has a local conveyance tax that varies by municipality.
• New Jersey: Graduated realty transfer fee starting at $2 per $500 for properties under $150,000, increasing to $3.35-$6.05 per $500 for higher values. Additionally, there is a 1% fee on sales over $1M. On $150,000: approximately $600-$1,000. Sellers also pay a separate GIT (Gross Income Tax) withholding.
• Illinois: Stacked taxes -- state ($0.50 per $500), county ($0.25 per $500 in Cook County), and city ($3.75 per $500 in Chicago). In Chicago on $150,000: approximately $1,350 in combined transfer taxes. Downstate Illinois without county/city taxes: $150.
• Maryland: Combined transfer tax (0.5%) plus recordation tax (varies by county, typically 0.5-1.1%). On a $150,000 property: $1,500-$2,400 depending on county. Maryland is one of the most expensive states for transfer-related costs.

How investment deals save on closing costs

Investment transactions have a fundamentally different cost structure than retail home sales. Here is where the savings come from.

No agent commissions

This is the biggest single savings. In a retail sale, the seller pays 5-6% of the sale price in agent commissions. On a $150,000 property, that is $7,500-$9,000. Off-market investment deals have no agents, no commissions, and no MLS listing. This savings is split between buyer and seller through the negotiated price.

No lender fees

Cash purchases eliminate loan origination fees (0.5-1% of loan amount), appraisal fees ($400-$600), lender's title insurance ($300-$600), mortgage recording fees, and all the miscellaneous lender-required charges that add up on a financed purchase. This saves $2,000-$5,000 on a typical transaction.

Fewer required services

Retail transactions may require a home warranty ($400-$600), termite inspection ($75-$150), radon test ($150-$250), and other inspections that lenders or agents require. Investment cash purchases typically skip these discretionary costs. The buyer inspects the property before signing and accepts the condition as-is.

Faster closings reduce per-diem costs

In financed retail transactions, per-diem interest accrues from closing until the first mortgage payment. Faster cash closings eliminate this entirely. Additionally, faster closings mean fewer days of property tax proration, fewer days of holding costs, and quicker access to the property for renovation or rental.

Simplified settlement statements

A cash investment closing has a clean settlement statement with a handful of line items. No lender charges, no broker commissions, no appraisal, no PMI, no escrow impounds. This reduces both the actual costs and the risk of surprise charges appearing at the closing table.

Retail vs investment closing costs: side-by-side

Here is an approximate comparison for a $150,000 property in a medium-cost state (using Florida as an example).

The cash investment deal saves roughly $10,000-$13,000 in closing costs on a $150,000 property. That is money that stays in the deal, improving margins for both buyer and seller.

Double close: roughly double the closing costs

If you are wholesaling through a double close instead of an assignment, you need to account for two sets of closing costs. The A-to-B closing (seller to you) and the B-to-C closing (you to end buyer) each incur their own transfer taxes, title insurance, settlement fees, and recording fees.

In no-transfer-tax states like Texas, the additional cost of a double close is primarily the second title insurance policy and settlement fee -- roughly $1,000-$2,000 extra. In high transfer-tax states like Pennsylvania (2%) or Maryland (1-1.6%), the double close means paying transfer tax twice, which can add $3,000-$5,000 or more to the total cost.

This is a significant factor in choosing between assignment and double close. In Texas, a double close costs an extra $1,000-$2,000 -- manageable on most deals. In Pennsylvania, a double close costs an extra $3,000-$5,000 in transfer taxes alone -- which may eat most of your wholesale profit on smaller deals.

State-by-state closing cost estimates

Here are approximate total closing costs for a $150,000 cash investment purchase (buyer side only, excluding prorations) in each major market. These include transfer tax, title insurance, settlement fee, and recording fees.

• Texas: $1,400-$1,800 (no transfer tax, but higher title insurance due to regulated rates)
• Indiana: $1,000-$1,500 (no transfer tax)
• North Dakota: $800-$1,200 (no transfer tax)
• Arizona: $1,000-$1,500 (no transfer tax)
• Oklahoma: $1,000-$1,400
• Ohio: $1,300-$1,900
• Nebraska: $1,100-$1,600
• Kentucky: $1,100-$1,600
• North Carolina: $1,200-$1,700
• Tennessee: $1,300-$1,800
• Georgia: $1,300-$1,800 (buyer pays title insurance + attorney fees)
• South Carolina: $1,400-$2,000 (attorney fees included)
• Oregon: $1,200-$1,700
• California: $1,500-$2,500 (varies significantly by county)
• Florida: $2,000-$2,500 (documentary stamps add up)
• Wisconsin: $1,400-$1,900
• Illinois: $1,500-$3,000 (varies dramatically -- Cook County/Chicago is much higher)
• New Jersey: $2,000-$3,500
• Connecticut: $2,500-$3,500
• Pennsylvania: $2,500-$4,000 (2% transfer tax is the driver)
• Maryland: $2,500-$4,000 (combined transfer + recordation)

These are buyer-side estimates. Seller closing costs include their portion of transfer taxes (where split), any outstanding liens paid at closing, prorations owed to the buyer, and the settlement fee split.

What to include in your deal analysis

When you are evaluating a deal, here is the closing cost line item that should be in your numbers:

• Buy-side closing costs: What you pay to acquire the property. For cash deals, use the estimates above for your state.
• Sell-side closing costs: What you pay (or the buyer pays) when you resell. This includes transfer tax (if any), title insurance, settlement fees, and agent commissions if selling retail.
• Double close premium: If wholesaling via double close, add the full second set of closing costs to your analysis.
• Holding costs: Property taxes, insurance, utilities, and maintenance from the day you close to the day you sell. Not technically "closing costs" but they appear on the settlement statement as prorations.

A good rule of thumb for quick deal analysis: budget 1-2% of the purchase price for buy-side closing costs on cash deals in low/medium-cost states, and 2-3% in high-cost states. Then budget the same again for the sell side. For more precise estimates, use the state-specific numbers above or check your state's page in our transaction guide.

Related articles

• Title Insurance: Who Pays in Your State
• Escrow vs Title Company vs Closing Attorney
• Attorney Closing States: What Investors Need to Know
• Closing a Real Estate Deal Without a Realtor
• Non-Refundable Deposits and Earnest Money in Investment Real Estate
• How to Find an Investor-Friendly Title Company

Disclaimer

This guide is for informational purposes only and does not constitute legal advice. Transaction customs vary by county and municipality, and can change based on market conditions. Consult a licensed real estate attorney or experienced title professional for guidance specific to your transactions.

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