North Mississippi Closing Costs: Buyer vs Seller

Closing costs can sneak up on you if you only budget for the down payment. If you are buying or selling in Senatobia, Tate County, or nearby DeSoto County, knowing who typically pays what can help you plan with confidence. You will learn the usual cost split, realistic ranges, and easy ways to negotiate your bottom line. Let’s dive in.

What closing costs include

Closing costs cover lender fees, title and escrow services, county recording charges, and prorated items like property taxes and insurance. They are separate from your down payment. For a quick primer on what counts as a closing cost, review the Consumer Financial Protection Bureau’s guide on what closing costs include.

• Lender and mortgage fees
• Title insurance and closing/settlement services
• Appraisal, inspections, and survey
• County recording and transfer charges
• Prorations for taxes, HOA dues, and utilities
• Repairs or credits agreed to during negotiations

If you are financing, your lender will issue a Loan Estimate early, then a Closing Disclosure at least three business days before closing. The CFPB explains how to read the Loan Estimate and the Closing Disclosure so you can compare numbers and avoid surprises.

Who pays what in North Mississippi

Local custom matters in Mississippi. Practice can vary by county and by title company, and many items are negotiable. Use the following as a starting point for Senatobia, Tate, and DeSoto County.

Buyer typically pays

• Loan-related fees such as origination, underwriting, credit report, and processing.
• Appraisal fee and most inspections. A pest inspection or septic test is common when needed.
• Lender’s title insurance policy. This is usually required by the lender.
• Prepaid items such as interest, the first year of homeowner’s insurance, and initial tax and insurance reserves.
• Survey, unless the seller provides one that your lender accepts.
• Recording fees related to the mortgage. These are modest county charges per recorded document.

Seller typically pays

• Real estate broker commission. Nationally this commonly totals about 5% to 6% of the sales price, split per the listing agreement, and always varies by agreement.
• Owner’s title insurance policy in many Southern markets. Local custom can differ, so confirm with your title company. If the seller pays this policy, the seller’s total costs rise.
• Repairs agreed to after inspection or a credit at closing.
• A share of the title/settlement fee if split by local practice or contract.
• HOA transfer or estoppel fees if the contract assigns them to the seller. Some DeSoto subdivisions have these fees, so check early.

Typical cost ranges to plan for

Everyone wants a number. These ranges reflect common national practice and are useful for planning in North Mississippi.

• Buyers: plan for about 2% to 5% of the purchase price for closing costs, separate from your down payment. The CFPB notes that buyer closing costs often fall in this range.
• Sellers: plan for about 6% to 10% of the sales price when you include commission. Your total can be higher if you pay the owner’s title policy or offer concessions.

Market conditions, loan type, and negotiations will shift these numbers. In a slower market, sellers may cover more buyer costs. FHA, VA, USDA, and conventional loans each have limits on how much the seller can contribute.

Quick local scenarios

Below are simple estimates for common price points in Senatobia and DeSoto County. These are planning ranges, not quotes.

Notes:

• If the seller pays the owner’s title policy, the seller total will increase by that premium.
• If the seller pays $6,000 in buyer concessions, the buyer’s out-of-pocket drops by $6,000, subject to loan program limits.

Local details in Tate and DeSoto

• Recording fees and document costs. County clerks set these fees, and they depend on the number of documents recorded. Expect modest totals that can add up with multiple recordings. Confirm current schedules with the Tate County and DeSoto County Chancery Clerk offices or your title company.
• Transfer taxes. Check with the county clerk or your title company to confirm whether any transfer tax or documentary stamp applies. If there is none, you will still see recording fees.
• Property tax prorations. Mississippi taxes are paid on a calendar basis. Prorations at closing depend on timing, and the amount can be meaningful right after tax bills go out. Check the county tax assessor for bill timing.
• HOAs and POAs. Many DeSoto County subdivisions have HOA transfer or estoppel fees that can be a few hundred dollars. Your purchase contract will assign who pays those.
• Title insurance practice. In parts of Mississippi the seller often covers the owner’s policy, but this is local custom, not law. Ask your title company for a quote and current norms.

Negotiation moves that work

You have options to shape your cash to close and your net proceeds.

• Ask for seller concessions toward buyer closing costs, within loan limits.
• Consider a rate buydown paid by the seller to reduce the buyer’s monthly payment.
• Trade repairs for a closing credit if you prefer cash rather than coordination.
• Split the settlement or escrow fee if local custom supports it.
• Adjust the closing date to fine tune prorations. For example, closing later in the month can lower prepaid interest for buyers.

Timeline and cash-to-close checklist

Here is what usually happens and when money changes hands.

• Earnest money deposit is paid shortly after the contract is signed.
• Inspections occur early, and the buyer pays those vendors directly.
• Appraisal happens during underwriting, and the buyer typically pays the appraisal fee up front.
• You receive your final Closing Disclosure at least three business days before closing.
• On closing day the buyer brings certified funds or wires money, and the seller signs and receives net proceeds.

Always verify wiring instructions directly with your title company and follow their security steps. Wire fraud prevention is critical.

How to get exact numbers

• Ask your lender for a detailed Loan Estimate early so you can compare fees and programs. The CFPB explains how to use the Loan Estimate.
• Review your final Closing Disclosure carefully. The CFPB’s guide to the Closing Disclosure shows where every number lands.
• Sellers should request an estimated net sheet from their agent before accepting an offer.
• Get two title quotes, one from a Tate County closing office and one from a DeSoto County office. Title premiums and settlement fees can vary.
• If cash is tight, ask about seller-paid costs or lender credits in exchange for a slightly higher rate. Loan rules limit these, so confirm what your program allows.

If you want a personal walkthrough tailored to your address and loan type, reach out. We will run your numbers and outline your options in plain English. Contact Deanna Wardlaw to schedule a consultation.

FAQs

Who usually pays the owner’s title policy in North Mississippi?

• Local custom often has the seller pay for the owner’s policy in some Mississippi markets, but it varies by county and title company, so confirm with your closing agent.

How much should a buyer budget for closing costs on a $300,000 home?

• Plan for roughly $6,000 to $15,000, which reflects the 2% to 5% planning range, then adjust for any seller concessions or lender credits.

Can a seller cover all of a buyer’s closing costs?

• Often yes within loan program limits, which vary by FHA, VA, USDA, and conventional loans, so check caps with your lender before you write the offer.

Are there any special county fees in Tate or DeSoto?

• Expect recording fees and prorated property taxes, and verify any transfer taxes or HOA transfer fees with the county clerk, tax assessor, or your title company.

How do commissions factor into a seller’s bottom line?

• Commission is usually the largest seller expense and commonly totals about 5% to 6% of the sales price, though the exact amount depends on your listing agreement.