How much are closing costs for a buyer in Delaware?
Delaware buyers should plan on closing costs of roughly 4% to 6% of the purchase price, on top of the down payment. The biggest single item is the buyer’s half of Delaware’s 4% realty transfer tax, which is 2% of the price. First-time buyers get a reduction of up to $2,000 on that tax. The rest is lender fees, title insurance, the settlement attorney, recording fees, and prepaid taxes and insurance.
By David Sordelet | October 10, 2026
If you’re touring open houses this weekend, here’s the number nobody puts on the listing: what it actually costs to get to the closing table.
Most buyers have their down payment figured out. Closing costs are where people get surprised — especially in Delaware, where the transfer tax is higher than in most states. Here’s how it breaks down so you can budget with real numbers.
The biggest piece: Delaware’s realty transfer tax
Delaware charges a realty transfer tax of 4% of the sale price in most of the state — 2.5% to the state and up to 1.5% to the county or town. By law, it’s split equally between buyer and seller unless the contract says otherwise.
That means you’ll typically pay 2% of the purchase price.
On a $300,000 home: about $6,000
On a $400,000 home: about $8,000
On a $500,000 home: about $10,000
That’s why Delaware buyers often need more cash at closing than friends who bought in Pennsylvania or Maryland expect.
First-time buyers get a break
If you’re a first-time homebuyer buying a home you’ll live in, Delaware reduces your share of the state transfer tax by 0.5% of the price, on up to $400,000. That’s a savings of up to $2,000.
On a $350,000 home, your transfer tax drops from $7,000 to $5,250. Your settlement attorney handles the paperwork, but make sure they know you qualify — tell them early. If you’re also using Delaware State Housing Authority assistance, I broke down what DSHA down payment assistance actually costs.
Everything else on your closing statement
Beyond transfer tax, here’s what typically shows up. Exact amounts depend on your lender, loan type, and price — your Loan Estimate will list them.
Lender fees
Origination or underwriting fees
Appraisal (usually several hundred dollars, often paid up front)
Credit report and flood certification
Any discount points you choose to pay to lower your rate
Title and settlement
Lender’s title insurance — required if you have a mortgage
Owner’s title insurance — optional, but I recommend it. It’s a one-time charge that protects you for as long as you own the home.
Settlement attorney fee — Delaware is an attorney state, so a Delaware attorney conducts your closing. Here’s how closing attorneys and title companies work in Delaware and Maryland.
Title search and recording fees
Prepaids and escrow
First year of homeowners insurance
Prepaid mortgage interest from your closing date to the end of the month
A cushion of property taxes and insurance for your escrow account
Your share of county and school taxes, prorated with the seller
Prepaids are why closing date matters. Close late in the month and you prepay fewer days of interest. It doesn’t change your total cost of the loan much, but it does lower the cash you need on closing day.
A real example: $350,000 home in New Castle County
Here’s a ballpark for a buyer with a conventional loan and 5% down:
Transfer tax (buyer’s 2%): $7,000 — or $5,250 for a first-time buyer
Lender fees and appraisal: $2,000–$4,000
Title insurance, attorney, and recording: $2,500–$4,000
Prepaids and escrow: $2,500–$4,500
Estimated total: about $14,000–$19,500, or roughly 4%–5.5% of the price — plus the $17,500 down payment.
Your numbers will differ, which is exactly why I run these with every buyer before we write an offer.
How to lower what you bring to closing
Ask for a seller credit. Sellers can contribute toward your closing costs. Loan programs cap how much — conventional loans typically allow 3% with less than 10% down, FHA up to 6%, and VA up to 4% in concessions. Whether a seller agrees depends on the market and the house.
Compare Loan Estimates. Lender fees vary. Get at least two or three.
Use first-time buyer and DSHA programs if you qualify.
Pick your closing date strategically to reduce prepaid interest.
In a competitive situation, asking for a big credit can weaken your offer. In a slower one, it’s often the easiest win on the table. Knowing which one you’re in is where a local agent earns their keep.
Frequently Asked Questions
Who pays the transfer tax in Delaware, buyer or seller?
By law, Delaware’s realty transfer tax is split equally between buyer and seller unless the contract says otherwise. With a 4% total rate in most areas, each side typically pays 2% of the sale price.
How much do first-time buyers save on Delaware transfer tax?
Qualifying first-time homebuyers get a reduction of 0.5% of the purchase price, on up to $400,000, off their share of the state transfer tax. That’s a maximum savings of $2,000. The home must be your principal residence.
Can the seller pay my closing costs in Delaware?
Yes. Sellers can give a credit toward your closing costs if it’s written into the contract. Your loan program limits how much: conventional loans generally allow 3% to 9% depending on your down payment, FHA allows up to 6%, and VA allows up to 4% in concessions.
Are closing costs included in my down payment?
No. Closing costs are separate from your down payment. A buyer putting 5% down on a $350,000 home needs the $17,500 down payment plus roughly $14,000 to $19,500 in closing costs, unless some are covered by a seller credit or assistance program.
When will I know my exact closing costs?
Your lender gives you a Loan Estimate within three business days of your application, and a Closing Disclosure with final numbers at least three business days before closing.
Closing costs in Delaware are higher than most buyers expect, mostly because of the transfer tax. The good news: they’re predictable, and with a first-time buyer reduction or a seller credit, you can often bring them down by thousands.
If you’re thinking about buying and want your real numbers before you start touring, reach out — Iris and I run these for every buyer we work with. And if you own a home now and are wondering what it could sell for, request your free Home Equity Report — it’ll show you your home’s current value, how much equity you’ve built, and what’s happening with prices and inventory right in your neighborhood. Get your free report at search.teamsordelet.com/seller.
About David Sordelet
Looking for a trusted real estate professional in Delaware or Maryland who can help you make smart choices? Look no further than David Sordelet, Designated Broker of Real Broker Delaware and Team Leader of Team Sordelet.
With over two decades of experience, 1,000+ successful transactions, and 200+ five-star client reviews, David is recognized as one of the region’s leading real estate experts. Licensed as the Designated Broker in Delaware and an Agent in Maryland, he provides unmatched knowledge of Wilmington, Newark, Hockessin, Dover, Middletown, and the Maryland Eastern Shore.
David understands that in real estate, who you work with matters most. That’s why he combines personalized service, clear communication, and expert negotiation with the most modern marketing strategies and cutting-edge technology to achieve exceptional results for his clients.
Whether you’re a first-time homebuyer, a move-up family, an investor, or a seller looking to maximize value, David Sordelet is the proven real estate professional you can count on.
License: RB-0031238-DE / 5013138-MD
Cost ranges are estimates for illustration. Your Loan Estimate and Closing Disclosure show your actual costs.
Team Sordelet and David Sordelet are licensed real estate professionals, not attorneys, accountants, or financial advisors. This article is general information, not legal, tax, or financial advice. Every situation is different — consult a qualified attorney, CPA, or lender about your specific circumstances before making decisions.
