Closing Costs
Quick Summary
Closing costs on Nantucket include a combination of buyer and seller expenses such as Land Bank fees, inspections, legal fees, taxes, and financing charges. Buyers typically pay the 2% Land Bank fee along with due diligence and lender costs, while sellers cover brokerage commissions, inspections, and prorated taxes. Understanding these expenses early helps both parties plan accurately and avoid surprises at closing. Local expertise is essential to navigating closing cost programs and ensuring a smooth transaction on Nantucket.
Closing costs are an important part of Nantucket real estate transactions. Whether you are buying or selling, these costs include required fees, taxes, inspections, and legal expenses that go beyond the purchase price. Understanding them early helps you plan accurately and avoid surprises at closing.
In many cases, buyers and sellers also explore closing cost programs or structured guidance from local professionals to better manage these expenses and understand where costs can be reduced or negotiated.
What Are Closing Costs in Nantucket?
Closing costs refer to the total fees paid at the completion of a real estate transaction. These costs vary depending on property type, financing, and whether you are buying or selling.
On Nantucket, closing costs typically include local taxes, inspections, legal fees, and specific island requirements such as the Land Bank fee. Because of the island’s unique regulatory structure, closing costs can differ from mainland Massachusetts transactions.
Working with an experienced local firm like Great Point Properties helps buyers and sellers understand the full breakdown before reaching the closing table.
Buyer Closing Costs Breakdown
Buyers on Nantucket should plan for several key expenses:
Brokerage Fees
In some cases, buyer broker fees may apply depending on representation agreements.
Land Bank Fee
2% of the purchase price
First-time homebuyers are exempt up to $1.2M
Not tax deductible, but may be added to property cost basis
Inspections and Due Diligence
Structural and building inspections
Pest inspection
Lead paint inspection
Water testing (if applicable)
Updated survey
Legal Fees
Legal services typically include:
Title examination
Document preparation
Recording fees
Costs vary based on transaction complexity.
Prorated Expenses
Buyers may also pay a portion of:
Property taxes
Insurance
Utilities and fuel
HOA or association fees (if applicable)
Sewer, landfill, or water fees
Financing Costs (if applicable)
If a mortgage is used:
Loan origination fees
Application fees
Appraisal fees
Credit report fees
Mortgage-related surveys
Title Insurance
Approximately $4.00 per $1,000 for owner coverage up to $1M
Additional lender policy fees if required
Seller Closing Costs Breakdown
Sellers in Nantucket also have specific closing obligations:
Brokerage Fee
Commission paid to the listing brokerage based on agreement terms.
Septic Inspection
Required if the property uses a septic system.
Oil Tank Requirements
Oil tanks must be upgraded to double-walled tanks at time of sale if applicable.
Legal Fees
Includes:
Document preparation
Title review
Recording fees
Costs depend on property complexity.
Prorated Expenses
Sellers are responsible for prorated:
Property taxes
Utilities and operating costs
FY 2026 tax rates:
Residential: $3.12 per $1,000 of assessed value
Commercial: $5.29 per $1,000
Land: $2.96 per $1,000
Capital Gains Taxes
Sellers should consult a tax advisor regarding federal and state capital gains implications.
Special Development Fees
Certain communities, such as Nashaquisset, may include additional transfer-related costs.
How to Reduce Closing Costs
While many closing costs are fixed, buyers and sellers can reduce overall expenses through smart planning:
Work with a local agent early in the process
Compare lender fees before selecting financing
Negotiate credits in the offer stage when possible
Use accurate inspection reports to avoid unexpected repairs
Explore eligibility for first-time buyer exemptions
Understand which fees are negotiable versus mandatory
Access to experienced local guidance is one of the most effective ways to manage closing cost programs and reduce unnecessary expenses.
If you want a clear breakdown of closing cost programs and what you can expect when buying or selling in Nantucket, connect with the team at Great Point Properties.
We can walk you through every cost in detail, help you plan ahead with confidence, and ensure you understand exactly what to expect before closing day.
FAQs
1. Who pays closing costs in Massachusetts?
Both buyers and sellers pay closing costs, but the exact breakdown depends on the agreement and transaction type.
2. What is the most expensive part of closing costs?
For buyers, the Land Bank fee and down payment-related costs are often the largest. For sellers, brokerage commissions are typically the highest expense.
3. Can closing costs be financed?
Some lender-related fees may be rolled into financing depending on the loan structure, but most closing costs are paid at closing.
4. Are there closing cost assistance programs?
Yes, some first-time buyer exemptions and local programs may reduce certain fees, especially related to the Land Bank.
5. Are closing costs tax deductible?
Some costs, such as property taxes or mortgage interest, may be deductible. The Land Bank fee is not tax deductible but may be added to cost basis.
6. How much are typical closing costs on Nantucket?
Costs vary, but buyers often pay 3% to 5% of the purchase price depending on financing and property type.
7. Do all properties have the same closing costs?
No. Costs vary based on property condition, location, financing, and whether inspections or special fees apply.