Closing Costs in Delaware
The average closing cost in Delaware is $22,044, which is 5.42% of the home price. Delaware's transfer tax rate is 3% (split buyer/seller).
Delaware's closing costs are elevated primarily because of the state's 4% real estate transfer tax, which is among the highest in the country. The standard split gives 2% each to buyer and seller, though this is negotiable. The state offers a reduced 1.5% transfer tax rate for first-time homebuyers on properties under $400,000, which can save buyers thousands. Attorney fees are mandatory and add $1,000-2,000 to the total.
By BuyAHomeIn Editorial | Updated 2026-03-02 | Sources: Zillow, HUD, Tax Foundation
Avg Closing Costs
$22,044
As % of Price
5.42%
Transfer Tax
3%
Attorney Required
Yes
Closing Cost Breakdown for a $406,448 Home
| Item | Estimated Cost |
|---|---|
| Loan Origination Fee (1%) | $3,252 |
| Appraisal Fee | $500 |
| Credit Report | $50 |
| Title Search & Insurance | $2,032 |
| Transfer Tax | $12,193 |
| Recording Fees | $150 |
| Home Inspection | $400 |
| Survey | $350 |
| Attorney Fee (required) | $1,200 |
| Prepaid Property Tax (2 months) | $339 |
| Prepaid Homeowners Insurance (1 year) | $1,219 |
| Prepaid Interest (15 days) | $869 |
| Estimated Total | $22,554 |
* Estimates based on average Delaware home price of $406,448 with 20% down payment. Actual costs may vary. Transfer tax, attorney fees, and prepaid items are state-specific.
How to Reduce Closing Costs in Delaware
Claim the First-Time Buyer Transfer Tax Reduction
First-time buyers purchasing homes under $400,000 qualify for Delaware's reduced transfer tax rate of 1.5% (instead of 2% for the buyer's share). This can save $2,000-5,000 on a typical purchase — make sure your attorney applies for this exemption.
Negotiate the Transfer Tax Split
While the 2/2 split is customary in Delaware, some sellers — especially those motivated to close quickly — will agree to cover a larger share. In a buyer's market, ask for a 3/1 or even 3.5/0.5 split as part of your offer.
Explore DSHA Homeownership Programs
The Delaware State Housing Authority offers Preferred Plus loans with competitive rates and down payment/closing cost assistance up to 5% of the loan amount. These can offset a significant portion of Delaware's high transfer tax costs.
Consider New Castle County vs. Sussex County
Property values and tax rates vary between Delaware's three counties. Sussex County (beach area) has seen the most appreciation but also offers newer housing stock with lower maintenance costs. New Castle County offers more established neighborhoods at slightly lower price points.
Legal Context for Delaware Closings
Conveyance Document
Special-warranty, quitclaim and general-warranty deeds
Security Instrument
Mortgage
Foreclosure Process
Judicial
Attorney Required
Yes
Delaware uses special-warranty, quitclaim and general-warranty deeds for property transfers and mortgage as the security instrument. An attorney is required at closing, which adds to your closing costs.
