Understanding Closing Costs: A 2026 Guide for Buyers & Sellers
February 5, 2026
Whether you're buying or selling a home in Southeast Wisconsin, closing costs are one of those line items that can catch people off guard. They're a normal part of every real estate transaction, but understanding what they include — and how much to expect — can help you plan ahead and avoid surprises at the closing table.
What Are Closing Costs?
Closing costs are the fees and expenses paid at the time a real estate transaction is finalized. They cover everything from lender fees to title insurance to government recording charges. Both buyers and sellers have closing costs, though the specific items differ for each side.
Closing Costs for Buyers
In Wisconsin, buyers typically pay between 2% and 5% of the home's purchase price in closing costs. On a $300,000 home — roughly the median price in many SE Wisconsin communities — that means $6,000 to $15,000. Common buyer closing costs include:
- Loan origination fees — charged by your lender for processing the mortgage
- Appraisal fee — typically $400–$600, required by the lender to confirm the home's value
- Title insurance — protects you and your lender against title defects
- Home inspection — usually $350–$500, and highly recommended
- Prepaid items — property taxes, homeowner's insurance, and interest that need to be paid upfront
- Recording fees — charged by the county to record the deed and mortgage
Your lender is required to provide a Loan Estimate within three business days of your application, which will outline your estimated closing costs in detail.
Closing Costs for Sellers
Sellers in Wisconsin generally pay between 6% and 10% of the sale price when you factor in agent commissions and other fees. The biggest expense is typically the real estate commission. Other common seller closing costs include:
- Transfer tax — Wisconsin charges $3 per $1,000 of the sale price (so $900 on a $300,000 sale)
- Title insurance — sellers in Wisconsin customarily pay for the owner's title policy
- Prorated property taxes — your share of taxes up to the closing date
- Any outstanding liens or HOA fees
- Attorney fees — if you choose to have an attorney review documents
Can You Negotiate Closing Costs?
Absolutely. In many transactions, buyers ask sellers to contribute toward closing costs as part of the offer. This is known as a seller concession and is especially common with first-time buyers who may be stretching to cover the down payment. In today's more balanced SE Wisconsin market, sellers are often willing to negotiate — especially if it means a smoother path to closing.
How Market Realty Group Can Help
Closing costs can feel complicated, but they don't have to be stressful. Our team at Market Realty Group walks every client through the numbers so you know exactly what to expect well before closing day. We'll help you understand each fee, identify opportunities to save, and connect you with trusted local lenders and title companies who offer competitive rates. Contact us if you'd like a personalized estimate for your situation.