How much are closing costs in Virginia? Buyers often pay about 2% to 5% of the price in closing costs and prepaids, led by recordation taxes, lender fees, title insurance, and escrows. Sellers pay the state grantor tax of $1 per $1,000 of price, settlement fees, and whatever commission and concessions they agree to.
by Daniel Yoon | eXp Realty | Richmond, Virginia
Closing costs in Virginia aren’t 1 number. They’re a stack of state and local taxes, lender charges, title fees, and prepaid escrows, and the stack is different for buyers and sellers. Here’s the line-by-line version for Richmond, Henrico, and Chesterfield in 2026, with the statutes behind the taxes.
Buyer closing costs
State and local recordation taxes
| Tax | Rate | On a $400,000 home with a $380,000 loan |
|---|---|---|
| State recordation tax on the deed (Va. Code 58.1-801) | 25 cents per $100 | $1,000 |
| Local recordation tax on the deed (Va. Code 58.1-3800) | Up to 1/3 of the state tax | Up to about $333 |
| State recordation tax on the loan (Va. Code 58.1-803) | 25 cents per $100 of the loan | $950 |
| Local recordation tax on the loan | Up to 1/3 of the state tax | Up to about $317 |
Together that’s up to about $2,600 on this example. Confirm the local share with your settlement agent, since localities set it within the state cap.
Lender, title, and settlement fees
- Origination and underwriting fees, which vary by lender
- Appraisal and credit report
- Discount points, if you choose to buy down the rate
- Lender’s title policy, and usually an owner’s policy
- Settlement or attorney fee and recording charges
These vary enough that ranges aren’t very useful. Your lender must give you a Loan Estimate within 3 business days of your application, and a Closing Disclosure at least 3 business days before closing (CFPB, CFPB). Compare Loan Estimates from at least 2 or 3 lenders.
Prepaid escrows
These aren’t lender profit. They’re costs you’d pay anyway: prepaid interest from closing to month-end, a cushion of property taxes, and usually a full year of homeowners insurance up front. Closing near the end of the month lowers prepaid interest, though your first payment comes sooner.
On a Richmond-area new build, the tax proration can be based on a land-only assessment. New Construction Property Tax in Richmond, VA covers why that number can look low and what can arrive after closing.
Seller closing costs
| Cost | How it’s figured | On a $500,000 sale |
|---|---|---|
| Grantor tax (Va. Code 58.1-802) | 50 cents per $500 of price, or $1 per $1,000 | $500 |
| Brokerage commission | Negotiable | At an example 5%, $25,000 |
| Concessions to the buyer | Negotiated in the contract | At an example 2%, $10,000 |
| Settlement, deed prep, and lien release recording | Set by the settlement agent | Varies |
| Repairs after inspection | Negotiated | Varies |
Commissions are negotiable, and since August 17, 2024, buyers must sign a written agreement with their agent before touring, which spells out that agent’s compensation (NAR). Sellers can still offer to help with the buyer’s costs or agent compensation as a negotiating tool. Run a net sheet both with and without concessions before you list. My seller net sheet calculator makes that quick.
Who pays what is negotiable
Almost every line can be negotiated. In a more balanced market, sellers in many price bands help with closing costs, rate buydowns, owner’s title insurance, or repair credits. Loan programs cap how much a seller can contribute. For conventional loans, Fannie Mae limits interested party contributions on a primary home to 3% when the loan-to-value ratio is over 90%, 6% from 75.01% to 90%, and 9% at 75% or less. FHA and VA have their own limits, so ask your lender.
A Richmond buyer example
Take a $400,000 Henrico home with 5% down on a conventional loan. The down payment is $20,000. Recordation taxes could total up to about $2,600, plus lender fees, title, settlement, and prepaids, which your Loan Estimate will itemize. If the seller agrees to 2% in concessions, that’s $8,000 toward those costs, within Fannie Mae’s 3% cap at that loan-to-value. First-time buyers should also look at assistance programs. See my step-by-step guide to buying a house.
Taxes and your basis
Per IRS Publication 551, your home’s basis includes settlement fees and closing costs for buying the property, such as transfer taxes and owner’s title insurance, but not the costs of getting the loan or amounts placed in escrow. Talk with a tax professional about your situation. My property tax guide covers the yearly tax side.
FAQ
The seller. Va. Code 58.1-802 sets it at 50 cents per $500 of price, which is $1 per $1,000. On a $500,000 sale, that’s $500.
Typically the buyer. The state tax is 25 cents per $100 on the deed and on the loan, and localities can add up to 1/3 of the state tax on each.
Many buyers pay about 2% to 5% including prepaids. Recordation taxes alone can be up to about $2,600 with a $380,000 loan. Your Loan Estimate will itemize the rest.
Yes, within loan limits. For a conventional loan on a primary home, Fannie Mae caps seller and other interested party contributions at 3%, 6%, or 9% depending on your loan-to-value ratio.
Your lender must give you a Closing Disclosure at least 3 business days before closing. Compare it with your Loan Estimate and ask about any changes.
Some homeownership costs may be, but many closing costs instead go into your basis. IRS Publication 551 says basis includes settlement costs like transfer taxes and owner’s title insurance, not loan costs. Ask a tax professional.
Yes. Commissions are negotiable, and buyers now sign a written agreement with their agent that states that agent’s compensation.
Want real numbers for your sale or purchase?
I’ll run a seller net sheet or a buyer cash-to-close estimate before any offer goes out. Book a time at cal.com/danielyoon or call 804-896-2694.
General information, not legal, tax, or lending advice. Your Loan Estimate and settlement statement control.