Buyer Closing Costs in Boston - Essential Guide for 2025

Buying a home is an exciting time in a person’s life. Enjoy the process but also make sure you are prepared. There are a lot of costs to be aware of when buying a home, so budget accordingly to avoid costly surprises. 

If you are financing your purchase with a mortgage, you will need more than your down payment and interest rates, so let’s take a minute to discuss other expenses to budget for.

The good news is that in Massachusetts buyer closing costs are relatively low when compared to other states. Most of the larger closing costs in areas like Boston and Cambridge fall on the seller - including real estate commission and transfer taxes. 

Despite the real estate fees being lower on a relative basis within the United States, the real estate closing costs Boston buyers have to pay do add up, and should not be ignored. 

What are closing costs in Boston?

Many of the closings cost you will encounter when buying a home in Boston, Massachusetts will result from getting mortgage loans. If you are buying all cash the good news is that your costs will be much lower. While these costs will vary from transaction to transaction, a good rule of thumb is to expect average closings costs of 1.25% to 1.75% of purchase price.

Buyer Attorney Fees

Many realtors estimate that a real estate lawyer in Boston will charge between $1,500 and $3,000. Many times an attorney will not charge an hourly rate but simply charge a flat fee per transaction. In addition, in most cases you won’t pay your attorney unless the deal closes. Some buyers are hesitant to bring in an attorney too soon because they are worried about fees, but this generally shouldn’t be the case. 

Origination Fee

Origination fees are paid by the buyer to the mortgage lender to cover costs associated with the creation of the loan. This fee will vary by lender but expect a charge $1,000 to 2,000 would not be out of the ordinary. 

Appraisal Fee

In order for a lender to loan you money they need to make sure that the property is actually worth what you have agreed to buy it for. Appraisals will typically cost between $750 and $1,000. 

Inspection Fee

It is always a good idea to have a professional home inspection completed before purchasing a home. A licensed inspector will complete a review of the systems of the property, roof, and appliances. A thorough inspection will cost from $500 to $1,000, or more if you have more advanced inspections for radon, septic systems, water wells, or other unique home features.

Credit Report Fee

Lenders will pull your credit report to determine your creditworthiness as a borrower. Banks will charge you as little as $29 to acquire this report.

Title Closing/Escrow Fee

This closing cost is paid to either the title or escrow company for actually conducting the closing of the real estate transaction. The title or escrow company serves an independent third party at the closing to help process the exchange of title. For a million dollar purchase expect a cost of around $1,225. 

Lender’s Title Insurance

Title insurance protects the lender from unforeseen issues with title issues that occurred before closing but were only discovered after closing. For example, if there are claims after the closing related to liens against the property or unpaid taxes resulting from issues prior to your ownership, a policy will protect the lender’s investment. 

This is a one-time fee paid by you that covers the lender for the entire time you own the property or the mortgage is outstanding. The cost of this policy is typically 0.25% of the loan amount or purchase price. This will generally be a requirement for a lender. 

Buyer’s Title Insurance

A buyer’s title insurance policy, sometimes referred to as an owner’s title insurance, is very similar to the lender’s policy but it protects the buyer rather than the lender. This covers you, the buyer, for your entire ownership of the property. 

The cost of a buyer’s policy is typically 0.375% of the purchase price. There may be additional fees here for title searches and abstracts but this is a good guideline. This isn’t necessarily required but highly recommended by any attorney. 

Miscellaneous Costs

In addition to the costs above, there can be additional costs levied against the buyer such as Recording Fees, Flood Verification Fee (sometimes referred to as a Flood Certification), Tax Service Fee, etc. You should likely budget another $500-$1,000 for these smaller costs. 

You also may be asked to pay the seller adjustments or prepay certain expenses such as homeowner’s insurance, property taxes, and prepaid interest. These are not closing costs but can add up to sizable upfront payments at closing. 

How can you offset buyer closing costs in Boston?

You won’t be able to escape many of these real estate closing costs but the good news is there is a way to completely cover them and get cash back when you buy a home in Boston. 

Prevu, a tech-enabled brokerage in Boston, offers a substantial commission rebate to the buyers they represent. The firm’s Smart Buyer™ Rebate is the largest in the Greater Boston Area. Working with Prevu, you will get the expert advice that you need and deserve, as well as save up to 1% of your purchase price. For example, if you buy a $1,000,000 home with Prevu, you could receive up to $10,000 in the form of a rebate.

In addition, some banks will also give buyers closing cost credits when getting a mortgage. It is always good to compare prices on not only mortgage rates but also closing cost credits that lenders offer.

How do you estimate closing costs in Boston?

Before considering a home purchase, you should speak to your mortgage lender or your real estate agent to get an estimate of what your closing costs will be based on your target sales price. Granted these are just approximations, but it will give you a good sense of what to budget for.

Some lenders have mortgage calculators and some real estate brokerages provide a closing costs calculator. Below we’ve provided an example of a buyer’s closing fees for a $1,000,000 home with a 20% down payment.

Buyer Closing Costs - Boston, MA ($1,000,000 price, 20% down payment)

• Attorney Fees — $3,000
• Buyer Title Insurance — $3,750
• Lender Title Insurance — $2,500
• Origination Fee – $1,350
• Title Closing & Escrow Fee – $1,225
• Appraisal Fee – $915
• Inspection - $600
• Survey – $350
• Credit Report Fee – $29
• Miscellaneous Costs — $1,000
• Total — $14,719 (or 1.47% of the purchase price)

Interested in buying a house in Boston? Browse listings and see how much you can save with Prevu's commission rebate.