Closing costs

Fees paid at the close of a real estate transaction — typically 2-5% of the purchase price.

Lumped together on the closing statement: lender fees (origination, underwriting, appraisal), title fees (search, insurance, escrow), recording fees, transfer tax, prepaid items (property tax, insurance, interest), and HOA transfers. Buyers usually pay 2-4% on a loan, 1-2% on all-cash. Sellers pay 6-8% (mostly broker commission + transfer tax). Always model closing as a separate line — it eats into cash-on-cash return.