Buying or selling in Anne Arundel County and wondering what you will actually pay at the closing table? You are not alone. Closing costs can feel murky, especially with Maryland’s state and county taxes and the extra details that come with water‑privileged or waterfront homes. In this guide, you will learn what each fee covers, who typically pays, what is negotiable, and how to plan your budget with confidence. Let’s dive in.

What closing costs cover

Taxes and recording fees

State and county transfer taxes and recordation fees appear on almost every settlement statement. These are government charges tied to transferring the property and recording the deed and mortgage. Who pays often depends on local practice and negotiation, so confirm the split with your title company.

Title search, title insurance, and settlement services

The title company researches ownership, liens, and encumbrances, then conducts the closing. An owner’s title insurance policy protects your ownership, while a lender’s policy is typically required if you finance. The settlement or closing fee covers the company’s administrative work. Who pays for the owner’s policy can be negotiated in Maryland.

Lender fees and mortgage charges

If you are financing, expect a lender origination or application fee, underwriting and processing charges, appraisal, credit report, flood determination, and mortgage recording fees. You will also prepay interest from your closing date until your first payment.

Prepaids and escrow deposits

Lenders usually require you to prepay some homeowner’s insurance and property taxes, and to fund an escrow reserve. You will also see prorations for taxes or HOA dues between buyer and seller based on the closing date.

Inspections, surveys, and specialty reports

Common inspections include general home, pest/WDI, radon, and, where applicable, septic or well tests. Surveys are sometimes needed and can be especially important for waterfront properties. Buyers usually pay for inspections, while repairs or credits are negotiated.

HOA or condo fees and documents

If the property is in an HOA or condo, the seller often pays for the resale package. Buyers typically pay prorated dues and any move‑in fees if required. Exact responsibilities depend on the community’s policies and your contract.

Other potential costs

Wire and courier fees, municipal certificates, and utility transfer charges can show up. Sellers pay real estate commissions per their listing agreement. Buyers in flood zones may need flood insurance before closing.

Who usually pays what in Anne Arundel

Customs can vary by neighborhood and market conditions. In many Maryland transactions, transfer and recordation taxes are negotiated. Buyers commonly pay lender fees, prepaids, and the lender’s title policy. The owner’s title policy and some settlement fees can be buyer or seller costs based on the offer. When in doubt, ask for an itemized estimate from the title company tied to your specific address.

Typical totals to budget

• Buyers: plan for about 2% to 5% of the purchase price in closing costs, excluding your down payment. This includes lender fees, title charges, inspections, prepaids, and escrow deposits.
• Sellers: excluding broker commissions, plan for roughly 1% to 3% of the sale price for title, transfer, recording, and payoff-related items. The final number depends on how transfer taxes and the owner’s title policy are handled.

Common line item ranges you might see:

• Appraisal: about $300 to $800 or more depending on complexity
• Home inspection: about $300 to $700, plus any specialty inspections
• Survey: about $300 to $1,000 or more based on size and detail
• Settlement or attorney fee: typically several hundred dollars
• Recording fees: usually tens to a few hundred dollars per document
• Prepaid insurance: often hundreds to a few thousand dollars based on coverage
• Escrow reserves: lenders often collect 2 to 6 months of taxes and insurance
• Wire or courier fees: commonly $25 to $50 each

Waterfront and water‑privileged considerations

As an example, Arnold’s proximity to the Severn River, the Magothy River, and Chesapeake Bay tributaries can add a few unique items to your closing plan.

• Flood insurance: If the home lies in a regulated flood zone, your lender may require coverage. Premiums vary by zone, elevation, and the home’s characteristics, and can affect escrow deposits.
• Elevation certificate: Lenders or insurers may request this survey-based document to set flood insurance rates. Budget for this if the home is in or near a flood zone.
• Piers, docks, and bulkheads: If present, expect documentation and, in some cases, permits or inspections to transfer. These items can influence timelines and cost.
• Title and survey detail: Waterfront parcels more often involve easements, riparian rights, or access questions. A current survey or survey update can help avoid surprises.
• Insurance nuances: Older waterfront homes sometimes require policy endorsements for wind or storms. Get quotes early so you understand both annual and upfront costs.

Smart negotiation moves

A clear strategy can lower your cash to close or improve your net proceeds.

• Transfer and recordation taxes: Discuss local custom with your agent and title company. Propose a split that keeps your offer competitive.
• Seller credits: Buyers can request a credit to cover allowable closing costs or prepaids. Lender rules limit these credits by loan type and down payment.
• Title policy responsibilities: Decide whether the seller covers the owner’s title policy or if the buyer will, and reflect that in your offer.
• Repairs and price vs credits: After inspections, weigh seller repairs against a price reduction or an escrow holdback to address work after closing.
• HOA/condo fees: Clarify who pays for resale packages and any move‑in fees, and request prorations or credits where appropriate.
• Lender comparison: Compare Loan Estimates. Weigh a slightly higher rate with lender credits against lower-rate options with higher upfront costs.

Planning your cash to close

Your final number includes your down payment, closing costs, prepaids, and initial escrow deposits. Ask your lender for a Loan Estimate early, and request a preliminary settlement estimate from the title company that reflects Anne Arundel’s taxes and fees. Focus on total cash to close, not just the monthly payment.

Step-by-step checklists

For buyers

• Get preapproved and learn how your loan type handles seller credits.
• Request an itemized title estimate specific to Anne Arundel County.
• Budget for inspections, appraisal, and possible flood insurance or an elevation certificate.
• Check whether the home is in a flood zone and seek insurance quotes early.
• Confirm escrow requirements for taxes and insurance.
• Verify wire instructions with a phone call to a known number before sending funds.

For sellers

• Order a preliminary title report so you can clear any liens or issues before listing.
• Ask your agent about local norms for transfer taxes and the owner’s title policy.
• Request mortgage payoff figures and estimate prorations.
• Gather permits and maintenance records for docks, bulkheads, and shoreline work if applicable.

At closing for both parties

• Buyers receiving a loan should get a Closing Disclosure at least three days before consummation. Review it line by line.
• Compare the final settlement statement to your estimates and ask questions about any unfamiliar charges.
• Use secure wiring and verify instructions by phone to prevent fraud.

Local proration notes

Property taxes in Anne Arundel are prorated based on county billing cycles and your closing date. You may also see special assessments, such as stormwater or sanitary district fees, that are prorated between buyer and seller. Your title company will calculate these amounts on the settlement statement.

How we help you navigate costs

You deserve a calm, well-managed closing that protects your bottom line. With decades of experience in Annapolis-area markets, our team brings deep waterfront knowledge and a concierge approach. We coordinate staging, trusted vendors, and professional marketing for sellers, and we guide buyers through financing choices, title, inspections, and insurance. Our relationships with local title and mortgage resources help you get accurate numbers early and keep surprises to a minimum.

Ready to see itemized numbers for your situation and neighborhood? Connect with Sandra K Libby for a tailored closing plan.

FAQs

What are typical buyer closing costs?

• Buyers commonly spend about 2% to 5% of the purchase price on closing costs, excluding the down payment, covering lender fees, title charges, inspections, prepaids, and escrow deposits.

Who pays Maryland transfer and recordation taxes in Anne Arundel?

• Responsibility is often negotiated; local practice varies, so confirm the split with your agent and title company and reflect it clearly in your contract.

What extra costs should I expect for waterfront homes?

• You may see flood insurance, a possible elevation certificate, and added survey or permit review for docks or bulkheads; insurance endorsements can also affect prepaids and escrow.

How can I reduce my cash to close as a buyer?

• Ask for seller credits within lender limits, compare lenders for rate-versus-credit options, and negotiate who pays for the owner’s title policy or certain fees.

What does title insurance and settlement cover?

• The title search and policies protect ownership and satisfy lender requirements, while the settlement fee covers document preparation and closing administration.

When will I see final closing numbers?

• If you have a mortgage, you should receive a Closing Disclosure at least three days before consummation, followed by a final settlement statement at closing.