Not sure who pays which fees when you buy or sell a home in Lafayette? You are not alone. Closing costs can feel opaque, and the split between buyer and seller depends on local custom and your contract. In this guide, you will learn who typically pays what in Boulder County, what costs to expect, and how to estimate your cash to close or net proceeds with confidence. Let’s dive in.
Who pays what in Lafayette
Local practice in Colorado shapes how closing costs are split. While every contract is negotiable, the items below reflect what is common in Boulder County and Lafayette.
Buyer costs: what you usually cover
- Down payment
- Loan fees from your lender, such as application, underwriting, and any points
- Appraisal ordered by your lender
- Credit report and other lender-ordered services
- Lender’s title insurance policy to protect the lender’s interest
- Homeowner’s insurance first-year premium
- Prepaids and escrow deposits for property taxes and insurance
- Recording fees for the mortgage and deed of trust
- Title, escrow, or closing fee. In Colorado the buyer often covers this, though local splits vary
- Inspections you choose to order, such as home, pest, radon, sewer, or survey if required
- HOA transfer or estoppel fees where applicable. These vary by HOA and are negotiable
Seller costs: what you usually cover
- Real estate broker commissions. This is often the largest line item for a seller
- Owner’s title insurance policy. In many Colorado transactions the seller provides an owner’s policy for the buyer, but it is negotiable
- Payoff of any existing mortgages, liens, and assessments
- Proration for property taxes based on the portion of the year you owned the home
- Recording charges related to the deed, if applicable
- Any agreed seller credits or concessions to the buyer
- HOA dues or special assessments due at closing, prorated as needed
Local specifics that affect your bottom line
Property taxes and proration
Boulder County administers property taxes. At closing, taxes are prorated based on the closing date so each party pays for their period of ownership. Title companies typically use the most recent tax bill or a reasonable estimate when exact figures are not available.
Recording fees and documents
Documents such as the deed and mortgage must be recorded with the Boulder County Clerk and Recorder. Recording fees are modest. Buyers commonly pay for mortgage-related recording, and sellers may cover deed-related recording. Customs can vary by transaction.
Title insurance in Colorado
- Lender’s policy: usually required by the lender and paid by the buyer.
- Owner’s policy: often provided by the seller in Colorado to protect the buyer’s ownership interest. The allocation is negotiable and can vary by neighborhood practice.
HOA transfer and estoppel fees
Many Lafayette neighborhoods include HOAs. Transfer or estoppel fees are set by each HOA. They can be paid by either party, though buyers often cover them. Confirm the amount early so it does not surprise you at closing.
Transfer taxes
Colorado does not have a statewide real estate transfer tax. Some municipalities impose local fees. Confirm with Lafayette city offices and your title company whether any municipal charges apply to your property.
Typical cost ranges in Boulder County
Every transaction is unique, but these ranges can help you plan. Final amounts come from your lender and title company.
Buyer-side ranges
- Loan origination and points: 0 to 1 percent of the loan amount
- Appraisal: 400 to 900 dollars
- Credit report and application: 25 to 75 dollars
- Lender’s title policy: roughly 0.25 to 0.5 percent of the loan amount
- Title, escrow, or closing fee: 300 to 1,000 dollars
- Recording: tens to a few hundred dollars
- Prepaid interest: depends on closing date and rate
- Escrow deposits: commonly 2 to 6 months of taxes and insurance
- HOA transfer or estoppel fee: 100 to 500 dollars or more
- Inspections: 200 to 1,000 dollars, depending on scope
Seller-side ranges
- Broker commissions: often 5 to 6 percent of the sale price
- Owner’s title policy: about 0.25 to 0.75 percent of the sale price
- Prorated property taxes and HOA amounts: depends on timing and assessments
- Recording or release fees for liens and deeds: modest
- Any seller concessions or credits: negotiated
How to estimate your numbers
Buyer: cash to close formula
Your estimated cash to close equals:
- Down payment
- Plus buyer-paid closing costs, such as lender fees, lender’s title policy, recording, prepaid interest, escrow reserves, and first-year homeowner’s insurance
- Plus inspections and survey if you did not already pay them
- Minus your earnest money deposit credited at closing
Your lender’s Loan Estimate and later your Closing Disclosure will show line items and totals.
Seller: net proceeds formula
Your estimated net equals:
- Sale price
- Minus broker commissions
- Minus payoff of your mortgage and any liens
- Minus owner’s title policy and closing fees
- Minus prorated taxes and unpaid HOA items
- Minus any seller concessions or credits
- Plus or minus any prorations in your favor
Your title company and listing agent can provide an early net sheet and refine it as details become clear.
Illustrative example for a Lafayette home
These figures are simplified to show how the math works. Exact amounts depend on your sale price, loan terms, title quotes, and tax timing.
- Seller example at 750,000 dollars sale price: commissions 45,000 dollars, owner’s title policy 3,750 dollars, prorations and fees 2,500 dollars, and a 5,000 dollar credit to buyer. Estimated seller closing costs before mortgage payoff about 56,250 dollars. If the mortgage payoff is 300,000 dollars, estimated net proceeds are about 393,750 dollars.
- Buyer example with 20 percent down: down payment 150,000 dollars. Lender fees and points 6,000 dollars, appraisal 600 dollars, title and escrow 3,000 dollars, escrows for taxes and insurance 3,000 dollars, recording and other fees 500 dollars, inspections and survey 1,200 dollars, minus 10,000 dollars earnest money credit. Estimated cash to close about 154,300 dollars.
Negotiating credits and concessions
When credits are most common
- Inspection period. You can request repairs, price reductions, or closing cost credits in exchange for accepting items as is.
- Appraisal gap. If value comes in low, you can ask for a price adjustment or a credit. Terms depend on market conditions.
- Rate buydown. A seller can pay discount points to reduce your interest rate, which can be more attractive than a straight credit.
Loan program limits matter
Loan programs cap seller-paid concessions. Conventional loans often cap concessions between 3 and 9 percent of the price depending on your down payment. FHA commonly allows up to 6 percent. VA loans allow concessions with specific rules on what the seller can pay. Always confirm the exact limit and eligible items with your lender early in negotiations.
Quick checklists to stay on track
Buyer checklist
- Ask your lender for an initial Loan Estimate and an outline of escrow deposits and prepaid items.
- Confirm the title company and request estimates for title premiums and closing fees.
- Ask whether it is customary in your part of Lafayette for the seller to provide the owner’s title policy.
- Verify HOA transfer or estoppel fees early if the property belongs to an HOA.
- Track your earnest money credit so you see the impact on cash to close.
Seller checklist
- Request a seller net sheet from your listing agent and a title estimate for owner’s policy and closing fees.
- Identify and address any liens, judgments, or special assessments that could affect closing.
- If you plan to offer concessions, verify the buyer’s loan program limits with the buyer’s lender.
- Confirm tax proration assumptions with the title company so estimates are realistic.
Local resources and timing
- Title and escrow will prepare your settlement statements and coordinate prorations, taxes, payoffs, and recording.
- Boulder County offices maintain recording fee schedules and property tax data that title companies use for accurate figures.
- You will receive a Closing Disclosure at least three business days before closing if you have a mortgage. Review it line by line and ask questions immediately so any corrections are made on time.
When you understand who pays what and how the numbers come together, you can negotiate smartly and avoid last-minute surprises. If you want a tailored estimate for your Lafayette property or the home you are eyeing, reach out to Sara Vaughn to schedule a personalized market consultation.
FAQs
Who pays the buyer’s lender fees in Lafayette real estate transactions?
- The buyer typically pays lender fees, though you can negotiate seller credits to cover some or all of them if the loan program allows it.
Do sellers in Colorado usually pay for the owner’s title insurance policy?
- In many Colorado deals the seller provides and pays for the owner’s policy, but it is negotiable and local practice can vary by neighborhood.
Are property taxes prorated at closing in Boulder County?
- Yes. Taxes are commonly prorated based on your closing date so each party pays for their period of ownership during the tax year.
Can a seller pay all of a buyer’s closing costs in Lafayette?
- Sometimes, but loan programs cap seller concessions. Conventional caps vary with down payment, FHA often allows up to 6 percent, and VA has specific rules.
When will I know my final cash to close or net proceeds?
- You receive a Closing Disclosure and settlement statements about three business days before closing that show final amounts, credits, and who pays which fees.
