You’ve found the perfect home on the New Hampshire Seacoast. The seller has accepted your offer, and you’re ready to close. It’s then that you’re faced with a harsh realization: There are unexpected closing costs.
Most homebuyers expect to pay around 2–5% of the purchase price in closing costs on top of their down payment. For Seacoast properties with a median price of $877,500, that translates to approximately $17,500 to $43,875. Combine that with moving expenses and other setup costs, and you might find yourself low on cash.
Understanding what you’ll pay and when helps you prepare financially and avoid stressful surprises at the closing table. This guide walks you through the most common closing costs in New Hampshire, so you can avoid being blindsided by unexpected closing costs when it’s time to get your keys.
Closing Costs in New Hampshire
Closing costs are the fees and expenses you pay when the home officially becomes yours. They may include loan origination fees, other lender fees, title insurance, attorney costs, recording fees, and even taxes.
These costs are separate from your down payment and what you pay as the home’s purchase price.
You’ll pay most of these fees at the closing table on the day you receive the keys. The settlement statement you receive before closing breaks down exactly what you owe for each service.
Seacoast Properties May Have Higher Closing Costs Than Average
According to a report by Consumer Affairs, buyers in New Hampshire pay an average of 2.33% of a home’s price in closing costs. Most people buying in the Granite State pay close to $8,186.
However, that figure is based on the average home price of $351,365 in New Hampshire. If you apply the average percentage closing costs to the typical New Hampshire Seacoast home, you’re going to pay a little over $20,000.
Avoiding Unexpected Closing Costs in New Hampshire
You may also face additional costs in New Hampshire, depending on the nature of the property you are purchasing and what happens during the buying process.
If there are legal complexities associated with the home or if there are issues with the title, you may need to pay legal fees. Larger properties may cost more to inspect and appraise.
Here are some of the most common closing costs in this state, so you can be ready.
New Hampshire’s Transfer Tax
If you’re moving to New Hampshire from out of state, New Hampshire’s tax code could result in unexpected closing costs. Not every state charges taxes for buying and selling real estate, like New Hampshire.
New Hampshire charges a Real Estate Transfer Tax (RETT) on all property sales. Both the buyer and seller pay this tax, which equals $0.75 per $100 of the property’s sale price. Combined, the total tax is $1.50 per $100 of the sale price, or 1.5%.
For a median-priced, $877,500 Seacoast home, each party would owe about $6,580.
This tax is one of the highest closing costs and shouldn’t be overlooked when budgeting. It’s not optional, so plan to include it in your financial preparations.
Title Services and Insurance
Title insurance protects against future claims that someone else has rights to your property. There are two main types of policies: a Lender’s Policy, which protects your lender, and an Owner’s Policy, which protects you as the homeowner.
Financing the Purchase
If you finance your home purchase, your lender will require a Lender’s Policy. This cost is usually less than a full Owner’s Policy and can often be financed as part of your closing costs.
One reason it tends to cost less is that it generally only guarantees about 40 years of title history, and it covers a diminishing asset: The remaining balance of your loan.
A full Owner’s Policy covers the full, long-term value of the property.
Paying Cash
If you pay cash for the home, a title policy is not technically required because there is no lender involved. However, a title company will not close your transaction without a title policy in place. If you want to waive title insurance on a cash purchase, you will need to have an attorney’s office handle the closing instead of a title company.
Often, choosing to pay for title insurance is still less expensive than paying for an attorney to resolve title issues later if a problem comes up.
According to an article by Houzeo, the cost of title insurance typically runs from 0.5% to 1% of the home’s sale price, depending on what’s included. For a median-priced home on the Seacoast costing $877,500, that means paying $4,387–$8,775.
A title search usually costs between $60 and $200.
Appraisals and Home Inspections
Your lender requires an appraisal to confirm the home’s value justifies the loan amount. This can cost between $400 to $700. A general home inspection, which examines the major systems and structure, usually costs between $300 and $500.
These inspections are critical because they can reveal expensive problems before you’re obligated to buy. Many buyers conduct inspections during the inspection period outlined in their purchase agreement.
Property Tax Adjustments at Closing
When you close on a property, the seller has usually already paid some of the year’s property taxes. You and your seller will prorate these taxes based on your closing date.
If you close on the 15th of the month, for example, you might owe the seller half that month’s taxes. On a $1,000,000 home in Hampton, where the property tax rate is $12.32 per thousand dollars of assessed value, prorated costs could total several thousand dollars.
The specific amount depends on your town’s tax rate and your closing date. Your closing attorney or title company will calculate this figure before closing day.
Mortgage-Related Fees
Lenders charge several fees to process and originate your mortgage. Loan origination fees typically range from 0.5% to 1.5% of the loan amount, according to a report. Processing fees might add another $500 to $1,000.
These fees often seem like the most unexpected closing costs. Shop around with multiple lenders because some fees are negotiable.
The Seacoast’s Unique Costs
You could see unexpected closing costs when buying a home in New Hampshire’s Seacoast region if you aren’t familiar with its unique features. The Seacoast region can also include costs relating to inspections and flood insurance.
Seacoast Inspection Costs
Properties with private wells and septic systems are common on the Seacoast, and they come with additional inspection requirements. Water testing for private wells costs around $150 or more, depending on what contaminants are tested.
For example, Endyne Environmental Laboratory Services offers a comprehensive homebuyer water testing package for $315. This package includes all the company’s recommended tests.
According to another testing company called NH Tap, septic system inspections run approximately $200 to $350.
New Hampshire has elevated radon levels in many areas, so radon testing is highly recommended at around $150 per test. If radon is detected in your water, additional testing costs about $50 more.
These inspections aren’t always included in a general home inspection, so ask your inspector specifically about them.
Flood Insurance for Coastal Properties
If your Seacoast home sits in a flood zone, your lender will require flood insurance before closing. The average cost of flood insurance in New Hampshire is approximately $1,109 per year. Federal flood insurance through the National Flood Insurance Program is available, and private flood insurance offers additional options.
Obtaining a flood zone determination is the first step. This tells you whether your specific property is in a high-risk area. If it is, flood insurance is mandatory, not optional.
Don’t Get Caught Off Guard by Unexpected Closing Costs in New Hampshire
Unexpected closing costs can add unnecessary stress to your home purchase. Staying informed about potential closing costs in New Hampshire is your best defense against surprises.
Request a loan estimate from your lender as soon as you receive a mortgage pre-approval. This document outlines most of your expected closing costs. Compare loan estimates from at least two or three lenders because some fees vary significantly.
Ask your real estate agent whether the seller will contribute toward your closing costs. In certain market conditions, sellers negotiate to cover a portion of the buyer’s costs.
Finally, contact Madden Group to start your home search with confidence and clarity about the true cost of buying on the New Hampshire Seacoast.
