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Get My Free Home EvaluationIn North Carolina, the buyer and the seller each pay a different set of closing costs, and almost all of it is negotiable except the excise tax — which state law puts squarely on the seller.
That last part is the piece most guides get wrong or skip. Under N.C.G.S. § 105-228.30, the excise tax is imposed on the transferor and must be paid to the register of deeds before the deed can be recorded. It is not a custom you can negotiate around the way you can with most other line items.
The 30-second version
- Buyers pay the costs of borrowing and verifying — loan fees, appraisal, lender's title insurance, survey, recording, and prepaid taxes and insurance.
- Sellers pay the costs of transferring — commission, deed preparation, loan payoff, prorated taxes and the excise tax.
- The excise tax is $1.00 per $500 of the price — 0.2% — and by statute the seller pays it. On a $500,000 sale that is $1,000.
- Nearly everything else is negotiable, including asking the seller to pay some of the buyer's costs. What is customary is not what is required.
- The due diligence fee is NOT a closing cost. It is paid up front, directly to the seller, and it is gone whether you close or not.
The short answer
Buyers carry more individual line items; sellers usually write the bigger cheque, because commission sits on their side of the ledger.
As a rough planning range — and these are rules of thumb, not quotes — buyers typically budget 2% to 5% of the purchase price in closing costs, while sellers typically see 6% to 10% including commission. Your actual numbers depend on your loan, your price point and what you negotiate.
What the buyer pays
Buyer costs cluster around two things: borrowing the money, and proving the property is what everyone says it is.
| Cost | What it covers |
|---|---|
| Loan origination and underwriting | The lender's charges for making the loan |
| Appraisal | The lender's independent valuation of the property |
| Credit report and verification | Pulling and confirming your file |
| Lender's title insurance | Protects the lender's interest against title defects |
| Owner's title insurance (optional) | Protects you — usually worth it, and cheap when issued alongside the lender's policy |
| Title search and attorney fee | The closing attorney's search and closing work |
| Survey (when ordered) | Boundaries, encroachments, easements |
| Recording fees | Register of deeds, for the deed and deed of trust |
| Prepaids and escrow | Prepaid interest, first-year insurance, and property tax reserves |
| Inspections | General, plus specialty inspections — often paid before closing rather than at it |
What the seller pays
Seller costs are the costs of handing the property over cleanly.
| Cost | What it covers |
|---|---|
| Excise tax | $1.00 per $500 of price — statutory, and the seller's by law |
| Real estate commission | Negotiated and disclosed in writing; the largest single line item |
| Loan payoff | Remaining mortgage balance plus any prepayment interest |
| Deed preparation | Attorney drafting of the deed itself |
| Prorated property taxes | Your share of the year up to the closing date |
| HOA transfer and statement fees | Where an association is involved |
| Agreed repairs or credits | Whatever came out of the due diligence negotiation |
| Seller-paid buyer costs | Only if negotiated — see below |
Thinking about selling? I’ll tell you what your property is really worth — no obligation.
Get My Free Home EvaluationThe excise tax, specifically
North Carolina's excise tax on conveyances — often called revenue stamps — is one dollar per five hundred dollars of consideration, or any fractional part of it. That works out to 0.2% of the sale price.
- $400,000 sale → $800
- $600,000 sale → $1,200
- $1,500,000 sale → $3,000
The statute assigns it to the transferor and requires payment to the register of deeds before recording. Unlike commission or attorney fees, this is not a matter of local custom — it is the one closing cost with a name attached to it in the General Statutes.
What is actually negotiable
Nearly all of it. "Customary" is not "required," and in a market where a seller wants speed or a buyer wants a rate buydown, the split moves.
The most common shift is seller-paid closing costs — the buyer asks the seller to cover a slice of their costs, often to fund a rate buydown rather than reduce the price. For a seller, a $10,000 credit and a $10,000 price reduction are close to identical on the bottom line; for a buyer with limited cash, they are not remotely the same thing. That asymmetry is where good agents find deals.
Which items move, and how far, depends on leverage — see how negotiating position actually works in North Carolina.
What is different about closing in North Carolina
It is an attorney closing
Residential closings here are handled by a licensed North Carolina attorney rather than a title company acting alone. The attorney runs the title search, prepares the deed, handles the disbursement and records the documents. Budget for that fee as a real line item, and choose the attorney rather than defaulting to whoever is suggested.
The due diligence fee is not a closing cost
This trips up almost every buyer moving here from another state. In North Carolina you typically pay a due diligence fee directly to the seller, up front, and it is generally not refundable — it buys you the right to walk away during the due diligence period. It is credited toward your purchase at closing if you close, but it is not part of your closing costs and it is at risk from the day you sign.
Earnest money behaves differently too
Earnest money sits in escrow with a third party and is fully refundable if you terminate before the due diligence deadline. Two deposits, two very different risk profiles — get that straight before you write an offer.
Thinking about selling? I’ll tell you what your property is really worth — no obligation.
Get My Free Home EvaluationGet the number before you are surprised by it
Every buyer should have an estimated closing cost figure before making an offer, and every seller should have a net sheet before setting a price. Both take minutes to produce and both change decisions.
If you are buying or selling in the Triangle and want your actual numbers rather than a percentage range, talk to our team.
Frequently Asked Questions
Who pays closing costs in North Carolina, the buyer or the seller?
How much is the excise tax in NC and who pays it?
How much are closing costs in North Carolina?
Can the seller pay the buyer’s closing costs in NC?
Is the due diligence fee part of closing costs?
Do you need an attorney to close in North Carolina?
Tim M. Clarke is a licensed North Carolina real estate broker, NCREC license #261118, and President of the Tim M. Clarke Team with the Jim Allen Group at Coldwell Banker HPW.
This is not legal or tax advice. Excise tax and recording requirements are set by statute and administered by the county register of deeds; confirm your specific figures with your closing attorney and lender.
Related Resources
- What Is Due Diligence in North Carolina?
- Earnest Money in North Carolina
- How to Negotiate as a Home Seller in NC
- Common Seller Expenses
- Understanding Title Insurance
Thinking about selling? I’ll tell you what your property is really worth — no obligation.
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