Not sure who pays what at closing in Boaz? You are not alone. Closing costs can feel confusing when you are trying to set a realistic budget or net sheet. In this guide, you will learn who typically pays which fees in Alabama, what ranges to expect in Marshall County, and how to estimate your cash to close with confidence. Let’s dive in.
Closing costs at a glance in Alabama
In Alabama, who pays each line item is negotiable, but local custom matters. Across much of north Alabama, buyers usually cover lender-related costs and most third-party buyer services. Sellers usually cover agent commission, the owner’s title policy in many transactions, and prorations. Your purchase contract will set the final split.
As a rule of thumb, buyers often spend about 2% to 5% of the purchase price in closing costs, not including the down payment. Sellers often spend about 1% to 3% of the sale price in closing costs, not including their mortgage payoff and the broker commission. Local quotes in Boaz will give you the most accurate numbers.
What buyers usually pay in Boaz
- Lender fees: origination, underwriting, and processing
- Appraisal, credit report, and flood certification
- Lender’s title insurance policy and required endorsements
- Buyer’s share of the settlement or closing fee if split by custom
- Recording fees for the deed and new mortgage
- Prepaid items and escrow funding for taxes and insurance
- Inspections and survey if required by lender or chosen by you
Expect total buyer closing costs to land near 2% to 5% of price, with the low end for cash purchases and the high end when you include prepaids and larger lender fees.
What sellers usually pay in Boaz
- Real estate commission, typically the largest seller cost
- Owner’s title insurance policy in many Alabama closings, though negotiable
- Mortgage payoff and any lien release recording fees
- Prorated property taxes and HOA dues through the closing date
- Agreed repairs or seller-paid concessions, if negotiated
Seller closing costs often run about 1% to 3% of the sale price before commission and mortgage payoff. Local custom in Marshall County can influence the exact split for title and settlement fees.
Typical fee ranges in Marshall County
Lender costs for buyers
- Loan origination fee: about 0.5% to 1.5% of the loan amount
- Underwriting and processing: about 400 to 1,200 combined
- Discount points: optional, each point equals 1% of the loan amount
- Appraisal: about 450 to 700 for a standard single-family home
- Credit report: about 30 to 50
- Flood certification: about 10 to 25
Title and settlement
- Owner’s title insurance: commonly a seller cost in Alabama, one-time premium based on purchase price
- Lender’s title insurance: buyer cost, premium based on loan amount
- Settlement or closing fee: about 300 to 700 for a standard closing, sometimes split
- Title exam and abstract: about 150 to 400
Recording and county fees
- Recording the deed, mortgage, and lien releases carries county-set fees. Many Alabama counties charge about 15 to 50 per document plus per-page fees. Verify exact Marshall County amounts with the Probate or Recorder office.
- Alabama generally does not impose a statewide real estate transfer tax like some states. Confirm any local documentary or transfer charges with Marshall County before closing.
Prepaids and escrow funding
- Homeowner’s insurance: first-year premium paid at closing if you have a loan
- Initial escrow deposits: commonly 2 to 3 months of estimated taxes and insurance
- Prepaid interest: covers interest from funding to month-end
- Property tax prorations: split so each party pays for days they own the home
Inspections and survey
- Home inspection: about 300 to 600
- Pest or wood-destroying organism inspection: about 50 to 150
- Survey if required: about 300 to 800
HOA and condo items
- HOA dues are prorated to the closing date. Buyers may owe any association transfer or initiation fees per the HOA’s policy.
Real estate commission
- Commission is typically around 5% to 6% of the sale price, negotiated in the listing agreement and split between brokerages.
Estimate your cash to close
Step-by-step worksheet
- Down payment
- Multiply the purchase price by your down payment percentage. For example, 3.5% for FHA or 5% to 20% for conventional.
- Lender and third-party fees
- Budget 0.5% to 1.5% of the loan amount or about 1,000 to 3,000 for lender fees. Add 450 to 700 for the appraisal and 50 to 100 for credit and flood certs. Include any discount points if you buy the rate down.
- Title and closing fees
- Owner’s title policy is often a seller cost in Alabama. Buyers should budget for the lender’s policy and a share of the settlement fee if customary. Add 150 to 400 for title search and exam.
- Prepaids and escrow funding
- Insurance: estimate 500 to 2,000 or more depending on the home. For escrow deposits, add 2 to 3 months of taxes and insurance. Include prepaid interest from funding to month-end.
- Other buyer costs
- Inspections: 300 to 700. Survey if required: 300 to 800. Recording and county fees: set a placeholder of 50 to 300 until you confirm with the county.
- Add a buffer
- Add a 5% to 10% cushion on the closing cost portion to cover differences between your Loan Estimate and the final Closing Disclosure.
Sample cash-to-close calculation
- Purchase price: 250,000
- Down payment: 10% = 25,000
- Lender fees and appraisal: estimate 2,500
- Title and settlement: estimate 1,500
- Prepaids and escrow funding: estimate 2,000
- Inspections and survey: 1,000
- Recording and county fees: 200
- Buffer at about 7% of closing cost portion: about 500
- Estimated cash to close: 25,000 + 7,700 = about 32,700
This example is a conservative illustration. Your actual numbers will depend on your lender, the title company, and the exact fee schedule in Marshall County.
How taxes and prorations work
Property taxes are typically prorated at closing so each party pays for the time they own the property. The seller is responsible through the day of closing. The buyer takes over the next day. Use the most recent tax bill or county records to estimate. Your title company will calculate the exact proration on the settlement statement.
Ways to lower closing costs in Boaz
- Shop lenders for the best mix of rate and fees
- Ask about lender credits versus paying discount points
- Negotiate seller-paid closing costs within program limits
- Compare quotes from title companies for premiums and settlement fees
- Reuse or transfer existing surveys or inspections when allowed
- Time your closing date to reduce prepaid interest to month-end
Verify local numbers in Marshall County
Because county fees and tax amounts change, confirm the following before you finalize your budget:
- Marshall County Probate or Recorder for deed, mortgage, and release recording fees
- Marshall County Revenue Commissioner or Tax Assessor for current property taxes and due dates
- A local title company for title insurance premiums, settlement fees, and customary splits in Boaz
- Your lender for a Loan Estimate within three business days of application
- Your HOA or management company for any transfer or initiation fee
Final thoughts for Boaz buyers and sellers
Closing costs in Boaz are manageable when you know what to expect. Use the ranges above to sketch your budget, then lock in accurate quotes with your lender and a local title company. If you are selling, request a net sheet early so you can plan around commission, owner’s title, and prorations. If you are buying, use your Loan Estimate to dial in your cash to close and negotiate where it makes sense.
Ready for tailored numbers for your address or price point in Marshall County? Reach out to Bailey Mack for a friendly, local walkthrough of your closing costs and a clear plan from contract to keys. Connect with Bailey Mack to schedule a free consultation.
FAQs
Who pays owner’s title insurance in Boaz, Alabama?
- In many Alabama closings the seller covers the owner’s policy, but it is negotiable and you should confirm custom with your title company or agent in Boaz.
Does Alabama charge a transfer tax on home sales?
- Alabama generally does not have a statewide transfer tax like some states, but counties charge recording or documentary fees that you should verify with Marshall County.
How are property taxes prorated at closing in Marshall County?
- Taxes are typically split so the seller pays through the closing date and the buyer pays from the next day, based on the latest tax bill or county records.
When will I know my buyer closing costs in Boaz?
- After you apply, your lender must provide a Loan Estimate within three business days and the title company can issue a preliminary settlement statement once details are set.
Can the seller pay some of my closing costs in Alabama?
- Yes, seller concessions are common within loan program limits and must be negotiated in your purchase contract.
What percent should buyers budget for closing costs?
- A common rule of thumb is 2% to 5% of the purchase price in closing costs, not including your down payment.
