Every real estate transaction involves certain fees, some of which are paid by the buyer while others are covered by the seller. If you understand closing costs at the outset, you’ll be better prepared to buy or sell a house fast in Milwaukee.
In this guide, we examine common closing costs, focusing on who pays them and how much you can expect to pay in 2025.
How Much Are Closing Costs In Milwaukee, Wisconsin?
In most cases, closing costs amount to 2%-5% of the sale price. For buyers, the amount you pay depends on the loan you’ve chosen to take out and any agreements you’ve reached with the seller.
According to Realtor.com, the median home price in Milwaukee is currently $209,000, meaning you could spend anywhere from $4,500 to $11,250 on closing costs.
In Madison, where the median price for a home is $440,000, closing costs may run you $8,800-$22,000.
How Are Closing Costs Paid In Wisconsin?
In the majority of cases, buyers and sellers share closing costs. Buyers usually pay closing costs out of pocket, whereas sellers typically cover their portion with the proceeds they get from the sale.
Closing Costs For Homebuyers In Wisconsin
As a buyer, you can expect to pay 2%-5% of the purchase price in closing costs. Here are some of the fees you may be responsible for paying:
1. Appraisal Fee
Virtually all lenders require an appraisal because it accurately determines a property’s value. These usually cost $300-$500. If paid for up front, the appraisal won’t be part of the closing costs.
2. Home Inspection Fee
Although optional, home inspections are highly recommended. These usually cost $300-$500, and you can either pay for one up front or at closing.
3. Loan Origination & Processing Fees
Your lender may charge a loan origination fee (1% of the loan amount) and a processing fee for underwriting and administrative costs. These fees are sometimes negotiable.
4. Discount Points
Buying mortgage points lowers your interest rate. Each point costs 1% of the loan’s amount and reduces your rate by 0.25%-0.5%.
5. Private Mortgage Insurance (PMI)
If your down payment is less than 20%, you may need private mortgage insurance (PMI), in which case an initial payment will be expected at closing.
6. Title Insurance
Buyers typically pay for the lender’s title insurance, while sellers usually cover the owner’s title insurance policy.
7. Homeowners Insurance & Property Taxes
Your lender may require you to prepay homeowners insurance and property taxes during the closing process.
8. Homeowners Association (HOA) Dues
If the property is part of an HOA, you’ll probably have to pay one month’s dues up front at closing.
Closing Costs For Sellers In Wisconsin
Sellers also have to pay closing costs, and these typically amount to 6%-10% of the sale price.
1. Real Estate Agent Commissions
This is usually the largest expense. You’ll have to pay 5%-6% of the sale price in commissions. The amount paid will be split between your agent and the buyer’s.
2. HOA Fees
If the home is part of an HOA, you may need to pay outstanding dues, transfer fees, and document fees.
3. Property Taxes
The seller must pay any unpaid property taxes at closing. If you’ve prepaid taxes, you may get a refund for the unused portion.
4. Title Insurance
Sellers often cover the owner’s title insurance, which protects the buyer against potential property disputes.
5. Transfer Taxes
Wisconsin imposes a real estate transfer tax on anyone selling a home. And depending on where you live, you may have to pay additional taxes.
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