Closing costs can feel like a moving target. You hear numbers, see line items, and wonder what is typical in Salt Lake City. If you are buying or selling, you want a clear, local guide so you can plan your cash, negotiate smartly, and avoid last‑minute surprises. In this article, you will learn what closing costs usually include in Utah, who pays what in Salt Lake County, typical ranges, example math, and practical ways to reduce or shift costs. Let’s dive in.
What closing costs include in Utah
Closing costs are the fees and prepaids needed to finalize your purchase or sale. They are separate from your down payment. On the buyer side, they include lender fees, title charges, recording, inspections, and prepaid items like insurance and taxes. On the seller side, they include commission, title charges, prorations, and any negotiated credits.
As a planning rule, buyers often spend about 2–5% of the purchase price in closing costs, while sellers commonly spend about 6–10% of the sale price when you include commission and standard seller charges. Your final totals depend on price, loan type, title company, HOA policies, county fees, and your negotiations.
Buyer costs in Salt Lake City
Here are the buyer items you will commonly see in Salt Lake County. Amounts are typical ranges and can vary by provider and loan type.
- Loan origination or lender fee: Often 0.5–1% of the loan amount, or a flat fee that can run $500–$3,000 or more. Negotiable in many cases.
- Discount points: Optional. Each point is 1% of the loan amount paid to lower the interest rate.
- Appraisal: Typically $450–$800+ depending on property and program.
- Credit report: Often $25–$60.
- Program upfront fees: VA, FHA, or USDA loans may include an upfront funding fee or mortgage insurance that you pay or roll into the loan, per program rules.
- Lender’s title insurance: Buyers customarily pay the lender’s policy when using a mortgage.
- Title search, settlement, and escrow fees: In Utah, title companies handle closings. Fees often range from several hundred dollars to over $1,000.
- Recording fees: Salt Lake County charges per document recorded. Amounts are modest but vary by document count.
- Prepaid items and escrow reserves: First year of homeowner’s insurance, prorated property taxes, initial escrow deposits, and any HOA dues due at closing. Totals often range from several hundred to a few thousand dollars based on timing and price.
- PMI upfront premium if applicable: Varies by loan product. Sometimes financed.
- Inspections: Home, pest, roof, sewer scope, and others you choose. Often $300–$1,200+ combined.
How much to budget as a buyer
Plan for about 2–5% of the purchase price in buyer closing costs, not including your down payment. Higher‑priced homes, complex financing, or larger prepaids can push you toward the upper end of the range.
Buyer example on a $500,000 home
Below is a simple, illustrative estimate. Actual figures will vary.
- Lender origination fee: 1% = $5,000
- Appraisal: $600
- Credit report: $50
- Lender’s title policy and title fees: $1,200
- Escrow or settlement fee: $600
- Recording fees: $150
- Prepaid homeowner’s insurance (first year): $1,200
- Prepaid property tax escrow: $1,500
- Inspections: $800
- Estimated buyer total: about $11,100, roughly 2.2% of price. Depending on lender fees and escrow requirements, totals often land between $10,000 and $25,000, or about 2–5%.
Seller costs in Salt Lake City
Sellers in Salt Lake County typically see these items on the settlement statement:
- Real estate commission: Commonly around 5–6% combined for listing and buyer agent, though always negotiable.
- Owner’s title insurance policy: By local custom in Utah, sellers often pay for the owner’s title policy. This is a one‑time premium tied to sale price.
- Escrow or closing fees: Title companies handle closing. Fees vary and may be split or allocated by agreement.
- Seller concessions or credits: Negotiated amounts that help cover the buyer’s closing costs, rate buydowns, or repairs.
- Payoff of existing mortgages or liens: Your loan balances and any liens are paid from proceeds.
- Prorated property taxes: Calculated based on the closing date and county schedule.
- HOA transfer and estoppel fees if applicable: Amounts vary by association, often in the hundreds.
- Recording or reconveyance fees: Fees to record releases of trust deeds or other documents.
How much to budget as a seller
Plan for about 6–10% of the sale price in total selling costs when you include commission and standard seller fees. Your net proceeds equal the sale price minus these costs and your mortgage payoff.
Seller example on a $500,000 sale
Here is a simplified illustration.
- Real estate commissions at 5.5%: $27,500
- Owner’s title policy and closing fees: $1,400
- HOA transfer, recording, miscellaneous: $500
- Prorated taxes and other payoff items: $2,000
- Estimated seller total: about $31,400, roughly 6.28% of price. If you credit buyer closing costs or complete repairs, your total increases.
Your net can also change based on city or county taxes due, HOA obligations, and your exact mortgage payoff. Ask your agent or title company for a personalized seller net sheet to dial in final numbers.
Salt Lake County specifics to know
- No separate transfer tax: Utah does not have a typical state transfer tax like some states. Expect county recording and related document fees instead.
- Title insurance custom: It is common for sellers to pay the owner’s policy and buyers to pay the lender’s policy. This is negotiable.
- Title and escrow practice: Utah closings are conducted by title or settlement companies. Fees and who pays can vary by company and contract.
- Recording and reconveyance: Salt Lake County charges per document recorded. Releasing a mortgage also carries a fee.
- HOA documentation: Many Salt Lake City condos and HOAs charge transfer or estoppel fees and require specific documents.
- Property tax timing: Taxes are prorated at closing based on the county’s schedule. Expect to see a tax proration line item.
- Local assistance programs: Utah Housing Corporation and local city or county programs sometimes offer grants, second‑trust loans, or reduced rate options that can help with down payment and closing costs, subject to eligibility.
Ways to reduce or shift closing costs
You have options to lower your cash to close or trim your net cost. Here are practical levers that work in our market.
For buyers
- Ask for seller concessions: You can request a credit to cover closing costs and prepaids. Program limits apply. FHA often allows up to 6%, VA often allows up to 4%, USDA often allows up to 6%, and conventional loans typically allow 3% with less than 10% down, with higher limits at larger down payments.
- Use lender credits: Many lenders can offer a credit in exchange for a slightly higher rate. This can reduce your upfront cash.
- Shop providers: Compare Loan Estimates from at least two lenders and ask which fees are required versus optional. You can often shop homeowners insurance and some title services.
- Consider what can be financed: Certain costs or mortgage insurance may be financed into the loan, if the program allows.
For sellers
- Calibrate commission and marketing: Commission is negotiable. Balance cost with exposure and strategy so you still maximize price and speed.
- Structure concessions strategically: A targeted credit for closing costs or a rate buydown can attract buyers more effectively than a similar price reduction.
- Prepare early: Resolve lien issues, gather HOA documents, and handle minor repairs up front to avoid last‑minute credits.
For both
- Review numbers early: Your lender must deliver a Closing Disclosure at least three business days before closing. Use that time to ask questions and confirm every line.
- Choose local expertise: A Salt Lake County title team and local agent will know prevailing fees, HOA norms, and recording steps that affect your bottom line.
What to expect from contract to closing
- Earnest money: Once your offer is accepted, you typically deposit earnest money into escrow. It is credited to your down payment or closing costs at closing.
- Loan Estimate: After loan application, your lender provides a Loan Estimate within three business days so you can compare fees and terms.
- Appraisal and inspections: You will schedule inspections, and the lender will order an appraisal for financed purchases.
- Closing Disclosure: At least three business days before closing, you receive the Closing Disclosure with your final numbers. The title company will prepare a settlement statement that aligns with the CD.
- Signing and recording: In Utah, you sign with the title company. Once funds are received and documents record with Salt Lake County, the home transfers.
Plan your cash and next steps
Use these quick checklists to stay in control.
Buyer checklist
- Request Loan Estimates from at least two lenders and compare line items.
- Confirm which title and inspection services are shoppable and get quotes.
- Ask your agent about seller concessions or a rate buydown strategy.
- Calculate prepaids based on closing date and insurance quotes.
- Review your Closing Disclosure the moment it arrives and verify every fee.
Seller checklist
- Ask your agent for a detailed net sheet with commission, title charges, prorations, and estimated payoff.
- Confirm who pays for owner’s and lender’s title policies under your contract.
- Budget for HOA transfer or documentation fees and any reconveyance fees.
- Decide in advance how you will handle repair requests and credits.
- Review your settlement statement before signing and confirm payoff amounts.
Ready to move with clarity
Closing costs do not have to be confusing. With a clear plan, local norms on your side, and smart negotiation, you can reduce surprises and manage your cash with confidence. If you want a customized estimate and strategy for your Salt Lake City move, reach out to our team. We will map your numbers, craft a plan to protect your budget, and guide you from offer to recording.
When you are ready, connect with Tyson Leavitt Real Estate for a tailored cost breakdown and a smooth, well‑managed closing.
FAQs
Who pays for title insurance in Utah?
- By local custom, sellers often pay for the owner’s title policy and buyers pay for the lender’s policy, subject to negotiation and your contract.
How much should a buyer budget besides the down payment?
- Plan for about 2–5% of the purchase price in buyer closing costs plus prepaids and escrow reserves.
How much should a seller budget for closing?
- Plan for roughly 6–10% of the sale price, including commission, title charges, prorations, and other standard fees.
Can the seller cover a buyer’s closing costs?
- Yes, within loan program limits. FHA often allows up to 6%, VA often allows up to 4%, USDA often allows up to 6%, and conventional loans typically allow 3% with less than 10% down.
Are there transfer taxes in Salt Lake County?
- Utah does not have a typical statewide transfer tax for home sales. Expect county recording and related document fees instead.
When will I see my final closing numbers?
- Your lender must issue a Closing Disclosure at least three business days before closing, and the title company provides a final settlement statement at or before closing.
Can I roll closing costs into my mortgage?
- Some costs can be financed or offset by lender credits depending on your loan program and lender rules. Ask your lender what is allowed.
