What Are Closing Costs?
Closing costs are the fees and expenses you pay when a real estate transaction is finalized — beyond the purchase price itself. They typically range from 2% to 5% of the home's price for buyers, and 6% to 10% for sellers (once you include agent commissions).
The exact amount depends on your state, your lender, and — critically — how your agent structures their compensation.
Seller Closing Costs
As a seller, you'll encounter these costs at closing:
| Cost | Typical Range | On a $800K Home |
|---|---|---|
| Real estate commission (traditional) | 5–6% | $40,000–$48,000 |
| Real estate commission (ShopProp) | Flat $4,995 | $4,995 |
| Title insurance (owner's policy) | 0.5–1% | $4,000–$8,000 |
| Escrow fees | $1,000–$3,000 | ~$2,000 |
| Transfer taxes | Varies by state | $800–$4,000 |
| Recording fees | $50–$250 | ~$150 |
| Prorated property taxes | Varies | Varies |
| Repairs / credits | Negotiated | Varies |
The Biggest Line Item Is Negotiable
On an $800,000 home, the difference between a traditional 5% commission and ShopProp's $4,995 flat fee is $35,505 to $43,505. That's more than every other closing cost combined. Commission is the single largest closing cost — and the one where you have the most control.
Buyer Closing Costs
Buyers typically pay:
| Cost | Typical Range | On a $800K Home |
|---|---|---|
| Loan origination fee | 0.5–1% | $4,000–$8,000 |
| Appraisal | $400–$800 | ~$600 |
| Home inspection | $300–$600 | ~$500 |
| Title search + insurance | $500–$2,000 | ~$1,500 |
| Escrow / closing fees | $500–$2,000 | ~$1,500 |
| Prepaid taxes + insurance | 2–6 months | $3,000–$6,000 |
| Buyer agent commission | 2.5–3% (traditional) | $20,000–$24,000 |
After the 2024 NAR settlement, buyer agent compensation is no longer automatically offered by sellers. This means buyers are now more directly aware of — and responsible for — their agent's fee. With ShopProp, buyers pay a flat fee and receive a rebate of the difference between what the seller offers and our flat fee.
How ShopProp Reduces Your Closing Costs
For Sellers
Traditional listing agents charge 2.5–3% of the sale price. On a $1 million home, that's $25,000–$30,000 just for the listing side. ShopProp charges a flat $4,995 for Full Service — the same managing-broker oversight, the same marketing, the same negotiation — regardless of price.
On a $1,000,000 home sale
Save $20,505 to $25,505vs. traditional 2.5–3% listing commission
For Buyers
When a seller offers buyer agent compensation (still common in most markets), ShopProp takes a flat fee and rebates the rest to you at closing. On an $800K home where the seller offers 2.5% ($20,000), you'd receive $15,505 back after ShopProp's $4,995 fee.
Closing Costs by State
Closing costs vary significantly by state. ShopProp operates in eight states:
- Washington — Excise tax 1.1–3% (tiered by price), no state income tax
- California — Transfer tax varies by county ($1.10 per $1,000 base + city taxes in SF, LA, etc.)
- Hawaii — Conveyance tax 0.1–1% (tiered), HARPTA withholding for non-residents
- Arizona — Low closing costs overall, no transfer tax
- Texas — No state income tax, title insurance rates set by state
- Virginia — Grantor's tax ~$1 per $1,000, recordation tax varies by city/county
- Colorado — Transfer tax varies by jurisdiction, documentary fee $0.01/$100
- Michigan — Transfer tax $3.75/$500 (state) + $0.55/$500 (county)
How to Estimate Your Total Closing Costs
- Start with the home price. Your closing costs scale with value.
- Add fixed costs. Escrow, title, recording — typically $3,000–$8,000 combined.
- Add your agent's commission. This is where the math changes dramatically with a flat fee.
- Add state-specific taxes. Transfer taxes, excise taxes, and documentary fees vary widely.
- Use our calculator. Get an exact estimate in 10 seconds.
Calculate Your Exact Savings
See what you'd save on commission alone — the biggest controllable closing cost.
Calculate Your Savings Get Started Chat with Our AI AssistantThe Bottom Line
Closing costs are unavoidable — but the largest one (agent commission) is absolutely negotiable. ShopProp has been proving this since 2007: full service, managing broker on every transaction, 4,000+ closings, flat fee. The savings speak for themselves.