Buying or selling a million-dollar home in Brentwood can raise a simple question with a complicated answer: who pays what at closing. You want clarity before you write checks or accept an offer. In this guide, you’ll learn which fees typically fall to buyers or sellers, realistic cost ranges for luxury properties, and the local nuances that influence your bottom line. Let’s dive in.
What closing costs include
Closing costs are the one-time fees and prepaid items due when you finalize a sale. They cover lender charges, title work, appraisals, inspections, recording, and prorations for taxes and HOA dues. For financed purchases, buyers also fund escrow accounts for taxes and insurance. In Brentwood’s luxury market, larger properties can add specialized inspections, surveys, and title endorsements.
Who pays what in Brentwood
Local customs and your purchase contract determine final responsibility. Many items are negotiable. The lists below reflect common practices in Tennessee luxury transactions, but ask your title company and agent for an itemized estimate before you commit.
Buyer costs: common items
- Lender charges if financing, such as origination, underwriting, and points.
- Appraisal fee, often higher for complex or custom estates.
- Credit report, flood certification, and courier fees.
- Lender’s title insurance policy, typically required by the lender.
- Owner’s title insurance is optional for the buyer and strongly recommended. In some Tennessee transactions the seller pays this premium, but it is negotiable and varies by local practice.
- Title search, closing or escrow fee, and recording of the mortgage. Practices vary by title company; many itemize these as buyer costs.
- Initial escrow deposits for taxes and insurance, plus prepaid interest to your first payment date.
- Inspections and surveys, including specialized reviews for septic, pool, roof, or acreage.
- HOA transfer or estoppel fees, if applicable, subject to negotiation.
- Recording fees for the deed on cash purchases.
Seller costs: common items
- Real estate commissions, often the largest seller expense. Industry reporting notes total commissions commonly around 5 to 6 percent of the sale price, though they are negotiable and structures can vary at higher price points. For context on market norms, review the National Association of Realtors at NAR.
- Owner’s title insurance premium in markets where it is customary for the seller to pay. This is negotiable in Tennessee.
- Prorated property taxes and any municipal assessments through the deed date.
- Deed recording fees, payoff fees for existing mortgages, and lien release recording.
- HOA dues prorations, estoppel or transfer fees per the community’s policies.
- Agreed repairs or seller credits noted in the contract.
- Attorney fees if used, plus any agreed seller-paid closing costs for the buyer.
Typical cost ranges at luxury prices
Percentages are similar to other markets, but the dollars scale quickly at the $1 million plus level. National consumer resources and industry data provide realistic planning ranges.
- Buyer closing costs commonly total about 2 to 5 percent of the purchase price for financed buyers. Cash buyers are typically on the lower end since lender fees do not apply. See an overview of fee types from Bankrate.
- Seller outlay, including commissions, often totals about 6 to 10 percent of the sale price. Commission remains the key driver for most sellers.
Illustrative examples
- On a $1,000,000 home: buyers might budget roughly $20,000 to $50,000 in closing costs if financing. Sellers might see total costs near $60,000 to $100,000, with commission as the main expense.
- On a $2,000,000 home: buyers might budget roughly $40,000 to $100,000 if financing. Sellers might see roughly $120,000 to $200,000 in total costs.
- On a $3,000,000 home: apply the same ranges for a ballpark. Buyers at 2 to 5 percent, sellers at 6 to 10 percent. Ask your lender and title team for precise numbers based on your loan terms, title premiums, and endorsements.
Title, recording, and prorations
Title insurance protects ownership and lender interests. The lender’s policy is typically buyer paid when there is financing. The owner’s policy is a one-time premium that protects the buyer’s ownership rights. Payment is negotiable and can vary by local custom. For a plain-language overview of title insurance, visit the American Land Title Association.
Recording fees for deeds and mortgages are small compared with the price of a Brentwood luxury home, but they vary by county and by document. Confirm the current fee schedule with your title company before closing. Property taxes and HOA dues are prorated to the deed date and can be credited to either party depending on the billing cycle. For statewide tax and recording guidance, consult the Tennessee Department of Revenue, and for local context on municipal services visit the City of Brentwood.
Financing and disclosures timeline
If you finance, your lender must provide a Loan Estimate within three business days of application and a final Closing Disclosure at least three business days before closing. These documents outline your costs and cash to close. Review and compare them line by line to avoid surprises. The Consumer Financial Protection Bureau explains both forms in detail in its guide to Loan Estimate and Closing Disclosure.
Luxury-specific factors to budget
- Appraisal complexity. Limited comparable sales can increase appraisal time and cost.
- Specialized inspections. Larger lots, septic systems, pools, and outbuildings often require extra inspections and reports.
- Title endorsements and surveys. Estates with easements, private roads, or acreage often need added endorsements and updated surveys.
- Escrow holdbacks. Custom or new homes may include holdbacks for punch-list items or HOA obligations, which affect initial cash or net proceeds.
- Seller concessions. Credits toward closing costs or rate buydowns are more common at higher price points and reduce seller net.
- Exchange or investment needs. If you plan a 1031 exchange or similar strategy, expect added closing logistics and fees. Confirm details with your tax advisor.
Quick budgeting checklists
Buyer checklist
- Down payment, separate from closing costs.
- Lender fees and any points if financing.
- Appraisal, home inspection, and specialty inspections.
- Title search, lender’s policy, and recording fees.
- Owner’s title policy, confirm who pays in your contract.
- HOA estoppel or transfer fees if applicable.
- Initial escrow deposits for taxes and insurance.
- Prepaid interest to your first payment date.
- Any negotiated seller credits that reduce cash to close.
Seller checklist
- Real estate commission. Ask your listing agent for an estimated net sheet.
- Owner’s title insurance premium, confirm local custom.
- Prorated property taxes and HOA dues.
- Buyer credits or agreed repair costs.
- Payoff of existing loans and lien release recording.
- Moving, staging, and any pre-listing repairs.
Negotiation tips that matter
- Clarify title responsibilities early. Decide who pays the owner’s policy and specific endorsements when you write the offer.
- Use credits strategically. Rate buydowns or repair credits can solve appraisal gaps or inspection findings without delaying closing.
- Align timelines. Build in time for specialty inspections, surveys, or HOA documents so your Closing Disclosure does not change at the last minute.
- Ask for itemized estimates. Request fee sheets from your lender and title team at the start, then update them after inspections and final loan terms.
Next steps and resources
- Review closing cost definitions and forms through the CFPB’s guide to Closing Disclosures.
- Explore title insurance basics with ALTA.
- Confirm statewide recording and tax guidance at the Tennessee Department of Revenue and regulatory information through the Tennessee Department of Commerce & Insurance.
- For market and commission context, consult NAR and use Bankrate’s closing cost overview to frame budget ranges.
When you are ready to run numbers for your specific property or to structure a clean, negotiable offer, begin a private consultation with Heather Hamel.
FAQs
How much are buyer closing costs in Brentwood luxury purchases?
- Financed buyers often budget about 2 to 5 percent of the purchase price, with cash buyers closer to the low end since lender fees do not apply.
Who usually pays owner’s title insurance in Williamson County?
- Payment is negotiable, and in some Tennessee transactions the seller pays the owner’s policy, so confirm local custom with your title company and agent.
Are HOA transfer fees buyer or seller costs in Brentwood?
- HOA transfer or estoppel fees vary by community and are negotiable, so your contract should clearly assign responsibility.
How are property taxes prorated at closing in Tennessee?
- Taxes are prorated to the deed date based on the county’s billing cycle, which results in a credit to the buyer or seller depending on timing.
What if the appraisal comes in low on a luxury home?
- Parties often renegotiate price, increase the down payment, or use targeted credits and buydowns to bridge a gap while keeping the deal on track.
When will I see my final closing numbers?
- You should receive a Closing Disclosure at least three business days before closing, which you can compare to your initial Loan Estimate for accuracy.
