Virginia Closing Costs Guide 2025
A complete breakdown of closing costs in Virginia — grantor’s tax, deed of trust recordation tax, title insurance, settlement fees, and strategies to reduce your costs.
Closing Costs Overview for Virginia
Virginia buyers typically pay between 2% and 4% of the purchase price in closing costs. Virginia has a unique closing cost structure because it imposes both a grantor’s tax (paid by sellers) and a deed of trust recordation tax (paid by buyers), making tax-related costs more significant here than in many other states.
Virginia-Specific Closing Costs
Grantor’s Tax
Virginia’s grantor’s tax is charged at $0.50 per $500 of the sales price, paid by the seller. In Northern Virginia jurisdictions, a regional congestion relief tax adds an additional $0.15 per $100 of sales price. While buyers don’t pay this directly, it affects seller net proceeds and negotiating dynamics.
Deed of Trust Recordation Tax
Buyers in Virginia pay a deed of trust recordation tax of $0.25 per $100 of the loan amount. On a $500,000 loan, this is $1,250. Some jurisdictions impose additional local recordation taxes.
Title Insurance and Settlement Fees
On a $500,000 purchase, combined title insurance premiums typically run $1,200–$2,000. Settlement company fees typically add $300–$700 for a standard transaction.
Virginia Closing Cost Summary
| Cost Category | Estimated Range | Paid By |
|---|---|---|
| Loan Origination Fee | 0–1% of loan | Buyer |
| Underwriting/Processing | $400–$900 | Buyer |
| Appraisal | $550–$800 | Buyer |
| Title Insurance (both) | $1,200–$2,000 | Buyer |
| Settlement/Title Fees | $300–$700 | Buyer |
| Deed of Trust Recordation Tax | $0.25 per $100 of loan | Buyer |
| Grantor’s Tax | $0.50–$0.65 per $500 of price | Seller |
| Recording Fees | $100–$250 | Buyer |
| Prepaid Insurance | $1,200–$3,600 | Buyer |
| Prepaid Taxes (escrow) | $1,000–$4,000 | Buyer |
| Total Buyer Estimate | $8,000–$18,000+ |
