Trying to budget for closing and not sure what’s real versus rumor? You’re not alone. Closing costs in Maine can feel opaque, especially in Yarmouth where local customs and timelines impact who pays what and when. In this guide, you’ll see the typical cost ranges for buyers and sellers, how credits work, and simple examples so you can plan with confidence. Let’s dive in.
What closing costs include
Closing costs are the fees and prepaids needed to finalize your home purchase or sale. They are separate from your down payment or a seller’s net proceeds. Many amounts are set by third parties, and who pays a given fee is guided by local practice and your purchase and sale agreement.
Typical totals in Yarmouth
- Buyers: plan for about 2% to 5% of the purchase price in closing costs. This excludes your down payment.
- Sellers: plan for about 6% to 10% of the sale price when commission is included. Commission is usually the largest line item and is negotiable.
You’ll see a Loan Estimate within three business days of loan application and a Closing Disclosure at least three business days before closing. Sellers receive a settlement statement from the closing agent.
Buyer closing costs: what you’ll see
Loan-related fees
- Application, processing, and origination fees. Some lenders charge a flat fee or a percentage of the loan amount. Structures vary.
- Discount points to lower your interest rate. One point equals 1% of the loan amount. Points can be paid by you, the seller through a credit, or offset with a lender credit.
Third-party services
- Appraisal. Often $400 to $900 depending on property and complexity.
- Credit report and flood certification. Generally modest fixed fees.
- Title search and lender’s title insurance. Premiums vary by price and insurer.
- Settlement or closing fee to the title company or closing attorney.
Prepaids and reserves
- First year of homeowner’s insurance, often due at closing.
- Prepaid interest from the day you close through month end.
- Property tax prorations based on the town’s billing calendar.
- HOA or condo dues prorated if applicable.
Government and recording items
- Recording fees for the deed and mortgage with the county registry.
- Any transfer or recording taxes as applicable. Verify current rules with the closing agent.
Buyer planning example (illustrative)
- $600,000 purchase price: closing costs of roughly $12,000 to $30,000 using a 2% to 5% planning range. Actual figures depend on your loan, timing, and local fees.
Seller closing costs: what you’ll pay
Real estate commission
Commission is typically the largest seller cost and is often in the 5% to 6% range, but rates are negotiable and can vary by market and property.
Payoffs and liens
- Mortgage payoff with accrued interest and any prepayment penalties.
- Releases for any tax liens, judgments, or home equity lines.
Title and settlement
- Owner’s title insurance. Who pays depends on local custom and what your contract states. Confirm with your agent and closing company.
- Settlement or closing fee as stated in your agreement.
Prorations and municipal items
- Property tax prorations based on Yarmouth’s tax calendar and the last paid date.
- HOA or condo fees prorated where applicable.
Miscellaneous
- Agreed repairs, home warranty if included, survey or condo transfer fees if required.
Seller planning example (illustrative)
- $600,000 sale price: total seller costs of about 6% to 10%. For example, a 5.5% commission is $33,000, plus $3,000 to $9,000 for other closing items, before loan payoff. Exact totals vary.
Who pays what in Yarmouth
Local custom and your purchase and sale agreement decide many of these items. For example, practices differ on who pays for the owner’s title policy. The safest approach is to agree on each line item in writing and confirm with your closing agent early.
Credits, concessions, and rate buydowns
Seller-paid credits
A seller can credit a buyer for closing costs at settlement. This is common when buyers want to reduce their cash to close or structure certain loan programs.
Loan program limits
- FHA loans have historically allowed seller concessions up to about 6% of the price or appraised value, whichever is less.
- VA loans typically limit concessions to a lower percentage, often around 4%, with additional rules.
- Conventional loans set limits based on the buyer’s down payment.
Program rules change. Always confirm exact limits with your lender before writing the offer.
Rate buydowns
Seller credits can fund temporary or permanent rate buydowns. This can meaningfully reduce a buyer’s monthly payment and may help bridge affordability.
How tax prorations work in Yarmouth
Property taxes are prorated based on the town’s billing cycle and the closing date. If the seller has prepaid taxes for days after closing, the buyer reimburses the seller at settlement. If taxes are due for days the seller owned the home but have not been paid, the settlement statement will credit the buyer. Because schedules vary by municipality, confirm Yarmouth’s current tax period and due dates with the town office or your closing agent.
Local planning tools and contacts
When you are ready for precise numbers, request live quotes and estimates from local experts:
- Your lender or mortgage broker for a Loan Estimate and rate options.
- A local title company or closing attorney for title premiums and settlement fees.
- The Cumberland County Registry of Deeds for recording fee guidance.
- The Town of Yarmouth assessor or tax office for tax calendars and any special assessments.
Quick worksheets you can adapt
Buyer estimate (illustrative)
- Purchase price: $X
- Total closing costs at 2% to 5%: $0.02X to $0.05X
- Lender fees and any points: 0% to 1% of the loan amount
- Appraisal: typically $400 to $900
- Title and lender’s title insurance: get a local quote
- Settlement fee: get a local quote
- Prepaids for insurance, interest, and taxes: depends on timing
Seller estimate (illustrative)
- Sale price: $X
- Total seller costs at 6% to 10%: $0.06X to $0.10X
- Commission example 5% to 6%: 0.05X to 0.06X
- Owner’s title policy if seller pays: get a local quote
- Prorated taxes and HOA, plus mortgage payoff: use current statements
Negotiation tips that work
For buyers
- Ask for a Loan Estimate early so you can compare lender fees.
- Request a written, itemized title quote for both lender’s and owner’s policies.
- If cash to close is tight, consider asking for a seller credit within program limits.
For sellers
- Build a net proceeds worksheet that tests different commission and credit scenarios.
- Pull mortgage payoff figures in advance and check for prepayment penalties.
- Weigh offering a buyer credit to widen the buyer pool and potentially improve your net outcome.
Timeline: from estimate to keys
Loan Estimate
You receive this within three business days of a completed loan application. It outlines rate, payment, and estimated closing costs.
Closing Disclosure
You receive this at least three business days before closing. It lists the final numbers, including prorations, payoffs, and any credits.
Ready for clarity on your numbers?
If you want a custom closing-cost or net-proceeds estimate for a Yarmouth address, we’re here to help. Reach out to Dambrie Garon Real Estate Advisors for a local, line-by-line breakdown and strategy tailored to your goals.
FAQs
How much should a Yarmouth buyer budget for closing costs?
- A practical range is 2% to 5% of the purchase price, excluding your down payment.
How much should a Yarmouth seller budget for closing costs?
- Plan for about 6% to 10% of the sale price, with commission usually the largest component.
Can a seller in Maine pay a buyer’s closing costs?
- Yes, sellers can credit buyers at closing, subject to loan program limits and terms in the purchase agreement.
Which closing costs are negotiable between buyer and seller?
- Credits, who pays for owner’s title insurance, and some settlement fees can be negotiated in the purchase and sale agreement.
How do property tax prorations work in Yarmouth, Maine?
- Taxes are prorated to the closing date using the town’s tax calendar, with credits on the settlement statement to balance prepaid or unpaid amounts.
Who typically pays for the owner’s title insurance in Yarmouth?
- It varies by local custom and contract language; confirm with your agent and closing company at the offer stage.
What is the timeline for closing disclosures and documents?
- Expect a Loan Estimate within three business days of application and a Closing Disclosure at least three business days before closing.
Where can I get an accurate closing-cost estimate for my situation?
- Ask your lender for a Loan Estimate and a local title company for a fee quote, then have your agent build a tailored worksheet for your address.
