Closing Costs in Vermont
The average closing cost in Vermont is $18,662, which is 4.59% of the home price. Vermont's transfer tax rate is 1.25% (buyer, if not primary).
Vermont's closing costs include a property transfer tax of 0.5% on the first $100,000 and 1.5% on the value above $100,000 for non-first-time buyers. First-time buyers purchasing a primary residence pay a reduced rate of 0.5% on the first $200,000 and 1.5% above that. This progressive structure makes the transfer tax a significant closing cost on higher-priced homes. Attorney fees are mandatory and typically run $1,000-2,000. Overall, Vermont closing costs can reach 3-5% of the purchase price.
By BuyAHomeIn Editorial | Updated 2026-03-02 | Sources: Zillow, HUD, Tax Foundation
Avg Closing Costs
$18,662
As % of Price
4.59%
Transfer Tax
1.25%
Attorney Required
Yes
Closing Cost Breakdown for a $406,730 Home
| Item | Estimated Cost |
|---|---|
| Loan Origination Fee (1%) | $3,254 |
| Appraisal Fee | $500 |
| Credit Report | $50 |
| Title Search & Insurance | $2,034 |
| Transfer Tax | $5,084 |
| Recording Fees | $150 |
| Home Inspection | $400 |
| Survey | $350 |
| Attorney Fee (required) | $1,200 |
| Prepaid Property Tax (2 months) | $963 |
| Prepaid Homeowners Insurance (1 year) | $1,220 |
| Prepaid Interest (15 days) | $869 |
| Estimated Total | $16,074 |
* Estimates based on average Vermont home price of $406,730 with 20% down payment. Actual costs may vary. Transfer tax, attorney fees, and prepaid items are state-specific.
How to Reduce Closing Costs in Vermont
Claim First-Time Buyer Transfer Tax Rate
First-time buyers in Vermont pay a reduced transfer tax: 0.5% on the first $200,000 of the purchase price (vs. $100,000 for non-first-time buyers). On a $350,000 home, this saves approximately $1,000. Your attorney must certify your eligibility at closing.
Use VHFA MOVE Program
Vermont Housing Finance Agency offers the MOVE program with competitive rates and up to $10,000 in down payment and closing cost assistance. The ASSIST program provides additional support for lower-income buyers.
Budget for Heating and Weatherization
Vermont's long, cold winters make heating costs a major expense — $3,000-6,000 annually depending on the fuel type and insulation. Many older Vermont homes are poorly insulated. Have an energy audit performed ($300-500) and budget for weatherization improvements that may be needed.
Get Comprehensive Septic and Well Testing
The vast majority of Vermont homes outside Burlington and a few larger towns rely on private septic systems and wells. Vermont's strict septic regulations (overseen by the Agency of Natural Resources) mean that failed systems can be extremely expensive to replace — $20,000-50,000 depending on site conditions.
Legal Context for Vermont Closings
Conveyance Document
Warranty, quitclaim and fiduciary deeds (with licence to sell)
Security Instrument
Mortgage deed
Foreclosure Process
Judicial
Attorney Required
Yes
Vermont uses warranty, quitclaim and fiduciary deeds (with licence to sell) for property transfers and mortgage deed as the security instrument. An attorney is required at closing, which adds to your closing costs.
