Thinking about buying in Alexandria but tempted by a rowhouse or condo in D.C.? You are not alone. The biggest difference you will feel at closing often comes down to how each place handles transfer and recordation taxes, plus a few local fees and timing quirks. In this guide, you will see where Virginia and D.C. diverge, how that affects your cash to close, and a simple way to estimate costs for each option. Let’s dive in.

What closing costs include

Closing costs are the one-time expenses you pay to finalize your purchase. They usually fall in the range of about 2 to 5 percent of the price, not including your down payment. Exact amounts vary by property, loan type, and location, so you should verify every line item with your lender and title company.

Typical categories include transfer and recordation taxes, title insurance and settlement fees, lender fees and third-party charges, prepaid items like taxes and insurance, and prorations or condo and HOA transfer fees.

Virginia vs. D.C. taxes

Transfer and recordation taxes are where Virginia and D.C. differ most. Both jurisdictions charge taxes when a deed transfers and when a mortgage is recorded, but the structures and who typically pays can vary. In many transactions the seller covers some deed transfer costs while buyers cover mortgage or recordation items, yet this is custom and contract specific. Your sales contract should spell out the allocation, and you should compute the buyer and seller shares for the same price in both locations before you decide.

What to check:

• Structure: percentage-based vs. fixed fees vs. progressive rates.
• Allocation: which party typically pays and what is negotiable.
• Whether mortgage recordation is taxed separately from the deed.
• Any exemptions or reduced rates for first-time buyers or programs you can use.

The practical effect is real. For similarly priced homes, different tax structures and allocations can change your cash to close by thousands of dollars.

Title insurance and settlement

Title insurance protects you and your lender against past issues with ownership. Premiums are generally one-time and based on purchase price. Settlement fees cover the work the title company or settlement agent performs to prepare your closing statement, collect and disburse funds, and handle recording.

In Virginia and D.C., licensed title companies and settlement agents are commonly used. Virginia does not require an attorney for all closings, and D.C. practice also allows title companies and settlement agents. Ask providers in each jurisdiction for a written estimate of premiums, endorsements, and settlement charges so you can compare.

Lender fees and prepaids

Your lender’s charges are tied to your loan program more than your location. Expect items like origination, underwriting, appraisal, and credit report fees. Third-party costs such as appraisal and credit reports tend to be similar across jurisdictions.

Prepaids and escrows can differ. Higher property values or different tax billing schedules can change the number of months of taxes and insurance your lender collects. Always review the Loan Estimate for each scenario and confirm whether any local mortgage or recording taxes apply based on where you buy.

Local taxes and HOA items

Property taxes and condo or HOA dues are usually prorated at closing so each party pays their share for the period they own the home. Alexandria and D.C. have different property tax schedules and rates, which changes the proration math and escrow deposits. Some associations or buildings charge transfer or move-in fees.

Ask the seller and the HOA for any transfer, certification, or move-in costs, plus timing for required documents. If you are looking at multiple buildings or neighborhoods, gather these numbers early.

Recording and timing

Most financed purchases close in about 30 to 45 days from contract to settlement. The main drivers are lender processing and the title search timeline. Local administrative steps can add time, such as tax status certifications, municipal lien checks, or HOA document delivery.

In some cases, non-resident seller withholding or other tax clearances are required. Recording timelines also vary. Ask your title company how quickly deeds and mortgages record in each jurisdiction and when funds are disbursed.

Simple cost estimator

Use this quick framework to compare Virginia and D.C. for the same purchase price. Replace each line with actual figures from your lender and title/settlement company.

Inputs to gather:

• Purchase price
• Deed transfer tax rate and buyer or seller allocation
• Mortgage or recordation tax rate and allocation
• Title insurance premiums and endorsements
• Lender fees, appraisal, credit report
• Prepaid interest, first-year or prorated homeowners insurance
• Property tax proration and escrow months required
• HOA or condo transfer, move-in, and admin fees
• Recording and courier fees

How to compute:

• Transfer or recordation taxes: Purchase price × applicable rate(s), split by contract.
• Title insurance: Use the title company’s premium schedule for lender and optional owner policies.
• Lender fees: Sum of flat fees plus any percentage-based origination.
• Prepaids: Property tax proration + insurance premiums + prepaid interest.
• Escrows: Months required × monthly tax and insurance amounts.
• Total buyer costs: Add the buyer’s portion of all lines per your contract.

Hypothetical walkthrough

This is only an example. Replace placeholders with current local figures from your lender and title company.

• Purchase price: 600,000
• Deed transfer tax: assume paid by seller at a rate you confirm
• Mortgage or recordation tax: apply the jurisdiction’s rate to the loan amount if applicable
• Title insurance: insert quoted premiums for lender and owner policies
• Lender fees: add origination, underwriting, appraisal, credit report
• Prepaids: estimate tax proration, homeowners insurance, and prepaid interest
• Escrows: multiply required months by monthly tax and insurance
• Buyer total: sum buyer-allocated taxes, title, lender, prepaids, escrows, and recording

Result: Run this list twice, once with Virginia figures and once with D.C. figures, then compare buyer cash to close side by side.

Checklist: compare VA vs. D.C.

• Get a lender preapproval and request a Loan Estimate for the same price in both jurisdictions.
• Ask title companies in each location for written estimates of transfer and recordation taxes, title premiums, and recording fees.
• Confirm in your offer who pays each local tax and fee. Do not assume custom applies to your contract.
• Verify tax proration methods and billing dates for each locality.
• For condos or HOAs, request transfer, move-in, and estoppel fees early, plus typical turnaround time.
• Check for first-time buyer or other assistance programs that might reduce closing costs and confirm eligibility and timing.
• If any party is out of state, ask about required tax withholding or clearances that could delay settlement.
• Ask the title company how long recording takes and whether funds disburse at closing or recording.
• Make sure the seller’s payoff and any municipal or utility clearances are ordered early to avoid surprises.

Who to contact for exact numbers

• City of Alexandria offices: Treasurer, Real Estate Assessment, and Clerk or Recorder for local fee schedules and tax timing.
• Virginia Department of Taxation for state-level recording and transfer guidance.
• D.C. Office of Tax and Revenue for transfer and recordation rules, withholding, and clearances.
• Local title and settlement companies for written quotes and timing.
• Your lender or mortgage broker for Loan Estimates and escrow requirements.
• State or local housing agencies for buyer assistance programs in Virginia and D.C.

Make a confident choice

You do not need to memorize tax codes to get this right. Instead, run the same property and price through both sets of local costs and see how the numbers shake out. If you align the contract allocation and plug in the current rates and fees, the better path usually becomes clear.

If you want a hands-on guide through the numbers and a strategy that fits your goals, reach out to Jesse Oakley. With award-winning, neighborhood-forward expertise across the DMV and a calm, consultative approach, you will have the clarity and advocacy you need from first tour to final signature.

FAQs

What are the biggest cost differences between Virginia and D.C.?

• The structure and allocation of transfer and recordation taxes differ and can change your cash to close by thousands, while most lender and third-party fees are similar.

Who typically pays transfer and recordation taxes in the DMV?

• It depends on local custom and your contract; sellers often cover some deed transfer costs and buyers often cover mortgage or recordation items, but always specify in writing.

Do lender fees change if I buy in D.C. instead of Alexandria?

• Lender fees are driven by the loan and lender rather than geography, though local tax and recording rules can affect prepaids and escrow amounts.

How long does a financed purchase usually take to close?

• Most financed purchases take about 30 to 45 days, with local certifications, HOA documents, or tax clearances sometimes adding time.

Can first-time buyer programs reduce my closing costs?

• Yes, many Virginia and D.C. programs offer grants, reduced taxes, or closing cost help; check eligibility and timing with local agencies and your lender.