Closing Costs for Nantucket Buyers: What’s Included

Buying on Nantucket comes with a lot of moving parts, and one of the biggest questions is what you will actually pay at closing. You want a clear, local picture before you wire funds and sign. In this guide, you will learn the typical closing cost categories, island-specific factors that change the numbers, realistic ranges to budget, and a simple timeline and checklist to keep your purchase on track. Let’s dive in.

What closing costs cover on Nantucket

Closing costs are the one-time fees and prepaids you pay to finalize your home purchase. Some items are lender related, others are tied to title and recording, and some are unique to Nantucket’s coastal and historic environment. Most buyers should plan for a total in the 2% to 5% range of the purchase price, not including your down payment. The sections below break down what is typically included so you can budget with confidence.

Loan-related fees (for financed buyers)

If you are getting a mortgage, expect several lender charges. Exact names and amounts vary by lender and program.

• Loan origination or lender charge: commonly 0.5% to 1.5% of the loan amount. Some lenders bundle or adjust this with your interest rate.
• Mortgage points (optional): each point equals 1% of the loan amount to buy down your rate.
• Application, underwriting, commitment, or processing fees: often $200 to $1,000 total.
• Credit report fee: typically $25 to $50.
• Appraisal: usually $400 to $1,500, with higher costs possible for coastal or complex properties and for island travel.
• Flood determination and certification: about $12 to $25.
• Private mortgage insurance (PMI): if you put less than 20% down, PMI may be monthly or upfront. Upfront PMI can range from 0.5% to 2% of the loan amount depending on program.
• Rate lock fee: sometimes separate, sometimes built into the rate offer.

Ask your lender for a written Loan Estimate early. It will outline your loan fees, interest rate, and projected monthly payment so you can compare options.

Title, title insurance, and closing attorney

Massachusetts closings commonly involve a real estate attorney. In addition, you will pay for title work and title insurance.

• Title search and exam: one-time fee to confirm clear ownership and identify liens or easements. Older island parcels, private ways, and informal easements can require more research time.
• Title insurance: the lender’s policy is typically required, and an owner’s policy is optional but recommended. Premiums are one-time and commonly fall in the 0.3% to 1.0% range of the purchase price based on rate tables and any discounts.
• Attorney or settlement fee: often $500 to $2,000+ depending on services and complexity.
• Document prep, courier, and administrative fees: nominal line items that vary by provider.

Because title on Nantucket can be more complex, it is smart to hire a local attorney and title team familiar with island parcels and endorsements.

Recording and municipal fees

You will pay to record your deed and, if applicable, your mortgage with the Nantucket County Registry of Deeds. Fees are per document and sometimes per page. While these amounts are usually a small portion of your total costs, they are required to make your ownership official. Massachusetts does not have a uniform state real estate transfer tax; verify any local assessments or charges with your closing attorney or the town before closing.

Inspections, surveys, and property condition

Plan for inspections to confirm the condition of the home and its systems. Travel logistics can affect pricing and timing, so book early.

• General home inspection: typically $300 to $800.
• Specialty inspections: septic (Title 5), well water, lead, oil tank sweep, structural, HVAC, chimney, or mold testing often run $200 to $1,200 each depending on scope.
• Survey or plot plan: commonly $500 to $2,500, higher for complex lots or if your lender requires specific certifications.

Septic systems fall under Massachusetts Title 5 rules. Transfers often require proof of compliance or remediation. On Nantucket, high groundwater and older systems can increase repair costs and permitting time, so surface any septic needs early in your contingency window.

Prepaids and escrow reserves

Lenders collect certain prepaids at closing to set up your escrow account and ensure essential bills are paid on time.

• Homeowner’s insurance: most lenders require the first-year premium or binder at closing. Coastal exposure can raise premiums, and wind or hurricane coverage may be separated.
• Flood insurance: if the structure sits in a Special Flood Hazard Area and your loan is from a federally regulated lender, flood coverage is mandatory. Even outside those zones, many buyers choose to carry flood insurance for peace of mind.
• Property taxes: you will reimburse the seller for prepaid taxes or pay your prorated share. Lenders often collect 2 to 6 months of taxes and insurance as reserves.
• Prepaid mortgage interest: you will pay interest from the funding date through month-end. Your closing date will change this amount.
• HOA or condo fees: expect prorated dues and, in some associations, a transfer or application fee.

Other potential costs

A few additional items may appear depending on your property and lender requirements:

• Survey review or municipal compliance checks.
• Utility or municipal transfer fees for water, sewer, or trash accounts.
• Travel or relocation logistics, which are not closing costs but can be higher due to the island setting.

Nantucket factors that change costs

Nantucket’s coastal location and historic character can alter both the size and timing of your closing costs. Understanding these factors early helps you plan and negotiate effectively.

Flood and coastal insurance

Many properties are in or near FEMA flood zones. If your home is in a Special Flood Hazard Area and you use a federally regulated lender, flood insurance is required. Coastal underwriting can also add windstorm and wind-driven rain considerations. Get hazard and flood insurance quotes early so your lender can review your binder well before closing. Premiums on the island can be higher than on the mainland, and higher premiums usually mean larger escrow reserves collected at closing.

Title complexity and historic rules

Older titles, private ways, and informal easements are more common on the island. Your title team may need extra time to complete searches and obtain endorsements. Also note that the Historic District Commission, zoning, and conservation restrictions can limit changes to structures. These are not title defects, but they do affect how you plan future improvements. Make sure you understand any restrictions during due diligence.

Septic systems and wells

Title 5 septic compliance is a major consideration. If the system needs repair or replacement, budgets can shift by thousands to tens of thousands and permitting can impact your timeline. Private wells may require testing and documentation. Bring any findings into your negotiation and allow time for estimates and approvals.

Registry and logistics

Nantucket has its own county registry. Recording fees and processing timelines can differ from mainland counties. Inspections and appraisals can book out due to ferry or flight schedules, especially in peak seasons. Build in buffer time for scheduling, document delivery, notarizations, and secure funds transfers.

How much to budget

As a rule of thumb, plan for total buyer closing costs of 2% to 5% of the purchase price. Island realities like flood and wind insurance, septic work, and title endorsements can push totals higher. Here are example ranges to help you plan:

• $500,000 purchase: about $10,000 to $25,000 in buyer closing costs, plus your down payment.
• $1,000,000 purchase: about $20,000 to $50,000. If flood insurance or Title 5 repairs are required, add several thousand to tens of thousands depending on scope.
• $2,000,000 purchase: about $40,000 to $100,000+. Higher insurance premiums, escrow reserves, and title endorsements can increase upfront cash needed.

How these costs typically stack up for a financed buyer:

• Loan fees, origination, and any points: roughly 25% to 40% of closing costs.
• Title, title insurance, and attorney fees: roughly 20% to 35%.
• Prepaids and escrow reserves for taxes and insurance: roughly 20% to 40%.
• Inspections, appraisal, and surveys: roughly 5% to 15%.
• Recording and municipal fees: usually less than 5% of the total.

For exact figures, rely on your lender’s Loan Estimate early and your attorney’s final numbers as closing approaches.

Timeline and how to avoid surprises

On the mainland, financed purchases often close in 30 to 60 days. On Nantucket, plan for about 45 to 75 days, depending on inspections, Title 5, appraisal availability, insurance binder timing, and any title curative work. Start early on anything that requires island scheduling or outside approvals.

Follow these timing tips:

• Secure preapproval and request a detailed Loan Estimate right after your offer is accepted.
• Engage a Nantucket real estate attorney and title team as soon as you go under contract.
• Order the home inspection and Title 5 septic inspection immediately to surface any big-ticket items.
• Obtain hazard and flood insurance quotes early and deliver your binder to the lender well before closing.
• Confirm recording fees and any local assessments with your attorney.
• Ask the seller for available surveys, plot plans, certificates, and HOA documents so you can avoid paying to duplicate work.
• Confirm exact funds to close and wire instructions with your attorney. Always call to verify instructions to reduce wire fraud risk.

Quick buyer checklist

Use this short list to organize your closing plan:

• Get a written Loan Estimate and compare lender fees and rate options.
• Hire a local real estate attorney and title company familiar with Nantucket parcels.
• Schedule the general home inspection and Title 5 septic inspection as soon as you are under contract.
• Obtain hazard, wind, and flood insurance quotes; secure the binder that meets your lender’s requirements.
• Request seller disclosures, any existing survey or plot plan, certificate of occupancy if applicable, and HOA or condo documents.
• Confirm current recording fees with the Nantucket Registry of Deeds through your attorney.
• Clarify escrow reserves for taxes and insurance with your lender.
• Verify wiring instructions by phone with your attorney before sending any funds.

A thoughtful plan makes closing smoother, and it helps you negotiate credits or timing if inspections or insurance uncover surprises. If you want local guidance that aligns with your goals, we are here to help you from offer to keys.

Ready to map your numbers and timeline with island clarity? Reach out to the team at Sanford & Sanford Real Estate for a personal walkthrough of your closing costs, strategy, and next steps.

FAQs

Who pays closing costs on Nantucket?

• Costs are negotiable in the purchase contract, but traditionally buyers pay lender, title, recording, inspection, and prepaid items, while sellers pay broker commissions. You can request seller concessions.

Are real estate commissions part of buyer closing costs?

• No. In typical Massachusetts transactions, the seller pays listing and buyer agent commissions. Your closing costs are separate from commissions and your down payment.

Is a Title 5 septic inspection required for every sale?

• A Title 5 inspection is commonly required for transfers of properties with private septic systems in Massachusetts. Specific timing and exemptions vary, so confirm with your attorney based on the property.

Do you always need flood insurance on Nantucket?

• If the structure is in a Special Flood Hazard Area and you use a federally regulated lender, flood insurance is required. Even if not required, many coastal buyers choose to carry flood coverage.

How much cash will I need at closing?

• Expect your down payment plus closing costs and escrow reserves. As a planning guide, set aside 2% to 5% of the purchase price for closing costs, then confirm your exact number on the Closing Disclosure.

Where do I confirm recording fees and local assessments?

• Your closing attorney can check current schedules with the Nantucket County Registry of Deeds and the Town Assessor or Town Clerk, and will include the correct amounts on your final closing figures.