Georgetown Closing Costs for Buyers, Clearly Explained

Buying in Georgetown should feel exciting, not confusing. Yet many buyers are surprised by how much cash they need at settlement beyond the down payment. If you want a clear picture of what you’ll owe and where your money is going, you’re in the right place. You’ll learn what typical closing costs cover in Washington, D.C., how seller credits work, and what to expect for condos versus rowhouses. Let’s dive in.

What closing costs cover in D.C.

Closing costs are the one-time expenses to finalize your purchase. In D.C., the biggest items often include transfer and recordation taxes, title and settlement fees, lender charges, and prepaids like insurance and property taxes. You may also see prorations with the seller for property taxes and HOA or condo dues.

Every transaction is unique. Always confirm exact figures with your lender and title company, and ask them to use the D.C. Office of Tax and Revenue’s current tables for transfer and recordation taxes.

Government taxes and recording fees

D.C. real estate purchases typically include transfer and recordation taxes. These are significant and vary by price and property type. Your title company will calculate them using the OTR tables for your purchase price. Recording fees for the deed and mortgage are smaller fixed amounts.

Property taxes are prorated at closing. If the seller has already paid for a period you will own the home, you reimburse that portion. If taxes are unpaid for a period the seller owned the home, you will receive a credit.

Title and settlement costs

A local title company searches the property’s history, examines the title, and manages your closing. You’ll see fees for the title search, settlement or closing fee, recording administration, and wire handling.

• Lender’s title insurance policy is required if you finance. The premium depends on your loan amount.
• Owner’s title insurance policy is optional but commonly purchased. It protects your equity and is based on the purchase price.
• Endorsements or surveys may be needed for certain properties, especially historic rowhouses with easements or shared-party walls.

Ask the title company for a premium quote and an itemized fee estimate early in your contract period.

Lender fees and loan charges

Your lender will provide a Loan Estimate within three business days of application and a Closing Disclosure at least three business days before settlement. Compare them line by line and ask questions about any changes.

Typical charges include origination, processing or underwriting fees, an appraisal, and small services like credit reports and flood certification. If you lock your interest rate or choose a float-down option, there may be a fee. If you use a low-down-payment loan or a government-backed loan, you may see mortgage insurance or program-related upfront premiums.

Lenders also collect initial deposits for your escrow account. Expect 2 to 6 months of property taxes and insurance, depending on timing.

Prepaids, prorations, and condo or HOA fees

At closing you’ll often prepay your first year of homeowner’s insurance. You may also fund your tax and insurance escrow. Condo or HOA communities can charge transfer fees, move-in fees, resale certificate fees, and a capital contribution if required by the association. Monthly dues are typically prorated based on your closing date.

For condos, build these fees into your cash-to-close plan early. The HOA or condo packet itself carries a fee and can take time to arrive.

Seller credits and how to negotiate them

Who pays which costs in D.C. comes down to your contract. In some deals, sellers agree to cover certain items or provide a credit toward your closing costs. Your ability to negotiate depends on market conditions, pricing, and your loan program.

• FHA loans commonly allow seller credits up to 6% of the purchase price.
• VA loans generally allow up to 4% in concessions, with rules on what the seller can pay.
• Conventional loans allow seller contributions that vary by down payment: limits are often 3% with less than 10% down, 6% with 10% to 24.99% down, and potentially higher with 25% or more down.

Seller credits reduce the cash you need at closing but cannot replace your required down payment. Credits must be written into the offer and approved by your lender.

Georgetown examples: condo and rowhouse

Below are two illustrative scenarios to show how cash-to-close can add up. Your numbers will vary. Always verify with your lender, title company, and the D.C. OTR.

Example A: Georgetown condo (illustrative)

• Purchase price: $850,000; 20% down; conventional loan
• Lender fees: $3,000–$8,000
• Title and settlement: $2,000–$6,000
• D.C. transfer and recordation taxes plus recording: 1.1%–2.2% of price → $9,350–$18,700
• Prepaids and escrow deposits: $2,000–$6,000
• Condo/HOA and resale certificate fees: $300–$1,500

Estimated buyer closing costs, excluding down payment: about 2%–4% of the price, or roughly $17,000–$34,000. Add the 20% down payment of $170,000 and your total funds to close might land around $187,000–$204,000.

Example B: Georgetown rowhouse (illustrative)

• Purchase price: $1,900,000; 20% down; conventional loan
• Lender fees: $5,000–$12,000
• Title and settlement: $3,000–$8,000
• D.C. transfer and recordation taxes: 1.1%–2.2% → $20,900–$41,800
• Prepaids and escrow deposits: $4,000–$12,000
• Possible survey or curative title work: $500–$3,000+

Estimated buyer closing costs, excluding down payment: about 2.5%–5% of the price, or roughly $47,500–$95,000. Add the 20% down payment of $380,000 and your total funds to close might be around $427,500–$475,000.

Cash-to-close timeline and checklist

A smooth settlement comes from early planning and clear communication. Here’s what to expect.

Typical timeline

• Offer accepted → Earnest money deposit is due, commonly 1%–3% of the purchase price. This applies to your final cash to close.
• During contingencies: inspection, appraisal, and lender underwriting. For condos, review the resale certificate and association documents.
• Within 3 business days of loan application: receive your Loan Estimate. Review and ask questions.
• At least 3 business days before closing: receive your Closing Disclosure. Confirm final figures and wiring instructions directly with the title company by phone to prevent fraud.
• Settlement: many title companies require your wire to arrive 1–2 business days in advance. Bring a government ID and any documents your title company requests.

What to budget and bring

• Remaining down payment
• Closing costs not covered by seller credits
• Initial escrow deposits for taxes and insurance
• HOA or condo transfer and move-in fees, if applicable
• Proof of wired funds or certified funds per title company instructions

Typical D.C. closings run about 30–45 days from contract to settlement, depending on financing and title complexity.

Georgetown-specific factors to consider

Georgetown’s historic fabric can add nuance to your title and settlement.

• Historic district or preservation items may appear as title exceptions and can require extra documentation.
• Party walls, alley access, and easements can trigger additional endorsements or a survey for clarity.
• Older properties sometimes involve rights-of-way or public space encroachments that the title company will review.
• Condo resale packets carry fees and strict timelines. Delays can push closing or require expedited processing.

Build a small buffer into your cash plan for these items, especially with older rowhouses.

Smart planning tips

• Ask your title company for an itemized estimate of transfer and recordation taxes and title premiums early in escrow.
• Compare your Loan Estimate and Closing Disclosure and request explanations for any changes.
• If you need help with cash to close, discuss seller credits with your agent before you write the offer.
• Plan your wire in advance and verify instructions by phone with the title company to avoid fraud.
• For condos, budget for the resale certificate, move-in fees, and any capital contribution.

Ready to get a clear estimate for your purchase and craft a winning offer strategy? Schedule a conversation with our team. We’ll coordinate with your lender and title company to produce a precise cash-to-close plan tailored to your Georgetown address.

If you’re exploring next steps or want local guidance, connect with Bernstein Homes. Our team can walk you through every line item and help you negotiate with confidence.

FAQs

How much should a Georgetown buyer budget for closing costs?

• Plan for about 2%–5% of the purchase price for buyer closing costs, excluding your down payment, with rowhouses often landing on the higher end.

Who pays D.C. transfer and recordation taxes in Georgetown deals?

• It is negotiable in the contract. Local custom varies by property and market conditions, so confirm with your agent and title company.

Can a seller pay some or all of my closing costs?

• Yes. Seller credits are negotiable and must fit your loan program’s limits. FHA often allows up to 6%, VA generally up to 4%, and conventional limits vary by down payment.

What documents show my final closing costs and when do I get them?

• Your lender must deliver a Closing Disclosure at least three business days before settlement. Compare it to your initial Loan Estimate and ask about any differences.

How do condo or HOA fees affect my cash to close?

• Expect prorated dues and separate charges like transfer fees, move-in fees, a resale certificate fee, and sometimes a capital contribution. Build these into your budget early.