Closing Costs in Salt Lake County: What You Actually Pay and Who Pays Them

Buyer closing costs in Salt Lake County run 2-5% of the loan amount — typically $10,000-$25,000 on a median-priced $550,000 home. Seller closing costs run 7-9% of the sale price, including agent commissions. Utah’s lack of state transfer tax keeps these costs lower than many other markets.

What buyers actually pay at closing

For a $550,000 Salt Lake County home with 10% down ($495,000 loan), a typical buyer pays:

Cost category	Typical amount
Lender origination + underwriting	$1,500-$3,500
Discount points (optional)	0-2% of loan
Appraisal	$550-$750
Credit report	$35-$75
Title insurance (lender’s policy)	$800-$1,400
Title insurance (owner’s policy)	$1,200-$2,000
Escrow / settlement fee	$400-$700
Recording fees	$40-$80
Prepaid property taxes (3-6 months)	$1,500-$3,500
Prepaid homeowner’s insurance (1 year)	$1,000-$1,800
Prepaid mortgage interest (per diem)	$300-$1,200
Inspections (general, radon, sewer)	$500-$900
HOA transfer / capital contribution	$0-$1,500
Total	$10,000-$25,000+

The wide range comes from loan type (FHA has lower fees, jumbo has higher), lender competitiveness, and whether you choose to buy down the interest rate with discount points.

What sellers actually pay at closing

For the same $550,000 home, the seller’s side looks like:

Cost category	Typical amount
Listing agent commission (2.5-3%)	$13,750-$16,500
Buyer agent compensation (negotiated, 2-3% historically)	$11,000-$16,500
Title insurance (owner’s policy, in some areas)	$1,200-$2,000
Escrow / settlement fee	$400-$700
Recording fees and HOA documents	$200-$500
Prorated property taxes	Varies
Home warranty (optional, sometimes seller-paid)	$400-$700
Seller-paid buyer concessions (negotiated)	$0-$15,000
Total	$27,000-$50,000+ (5-9%)

The 2024 NAR commission settlement changed how buyer agents are compensated — buyers can now negotiate their agent’s fee directly, and seller concessions toward buyer agent fees are no longer assumed in the listing. See our breakdown of the NAR commission rules in Utah for current practice.

Why Utah is cheaper than many states

Utah has no state real estate transfer tax. States with transfer taxes layer 0.5%-3% on top of every sale:

• New York City — 1-2.625% transfer tax
• Washington State — 1.28-3.0%
• Pennsylvania — 2% combined state and local
• Delaware — 4% (highest in U.S.)

A seller of a $550,000 home in Washington pays roughly $10,000 more than the same seller in Utah just on transfer tax. This is a meaningful Utah advantage for sellers — and one reason we’re seeing more out-of-state retirees and investors purchase here.

Closing cost negotiation in Utah

Most buyer closing costs are negotiable. Three common moves:

• Seller concessions — ask for 1-3% credit toward closing costs. Strongest leverage on homes that have been on market 30+ days.
• Lender credits — accept a slightly higher rate in exchange for lender-paid closing costs. Useful if you’re cash-tight at closing.
• Shop title insurance — Utah allows you to choose your title company. Quotes can vary $500-$1,500.

Sellers have fewer levers. The biggest is commission negotiation, but cutting listing agent commission usually means worse marketing — and a longer time on market wipes out the savings.

What to do next

Before you sign a purchase contract, ask your lender for a Loan Estimate showing all expected closing costs in writing. By federal law it must be provided within 3 business days of application. Use it to compare lenders apples-to-apples.

For sellers, request a net sheet from your listing agent before pricing the home. Get a free home valuation with full net sheet — we’ll show you exactly what you walk away with at multiple price points.

Closing costs surprise buyers more than any other part of the transaction. Knowing the line items in advance turns surprise into planning.