Uncovering the Hidden Costs of Home Buying in Maryland for 2025

Eddie Brady
Aug 10
3 min read

Thinking about buying a home in Maryland in 2025? Whether you’re relocating from out-of-state or moving within the DMV, Maryland has real estate rules and closing costs that can easily surprise you—and hit your wallet hard.

I’m Eddie Brady, a Maryland Realtor and relocation advisor, and in this post I’m pulling back the curtain on five hidden fees and lesser-known rules that could affect your purchase. If you want to move smart and save money, these are the things your agent might not tell you upfront. 🎁 Free Resource: Maryland Buyer Readiness Guide

Before you start your home search, grab my free Maryland Buyer Readiness Guide. It includes:

✅ A full closing cost breakdown
✅ Red flag clauses to watch for in contracts
✅ Timeline planner to stay on track

📥 Download it here or visit eddiebrady.com to schedule a free consultation.

1. 💰 Maryland's Transfer and Recordation Taxes: The $9,500 Surprise

Historic street scene at dusk with brick buildings, vintage streetlights, and a distant domed building. Warm lights cast an inviting glow.

In Maryland, buyers face transfer and recordation taxes, which function like a sales tax on real estate transactions. On a $500,000 home, these taxes can total around $9,500—and that’s just the base.

Here’s what you need to know:

Default contract language splits costs 50/50 between buyer and seller
Some counties charge additional local transfer taxes
For new construction homes, builders often pass 100% of these fees to the buyer—no split

✅ Buyer Tip: Confirm in writing how these taxes are being divided. Ask your agent to negotiate a fair split early.

2. 🛠️ Home Inspections: Optional… But Not Really

Historic street with brick buildings and colorful roofs. A jewelry store and outdoor cafe with Maryland flags. Bright, sunny day.

Maryland strongly encourages buyer-side home inspections—but what most people don’t realize is how quickly those costs add up.

Typical costs include:

General inspection: $350–$750
Add-ons (septic, radon, sewer, pool, etc.): $1,000–$2,000+

These costs are non-refundable, even if you walk away from the deal. But skipping them could cost you far more later—a cracked foundation or failed well system can run $30K–$50K in repairs.

✅ Buyer Tip: Schedule inspections within 48 hours of contract signing to stay within your 5–10 day window.

3. 🏘️ HOA & Condo Capital Contribution Fees

Aerial view of a city skyline with numerous skyscrapers, roads, and a harbor in the background under a clear blue sky.

In Maryland, many communities with HOAs or condo associations charge a one-time

capital contribution fee at closing. These funds go toward long-term reserves for major repairs or improvements.

Here’s what to watch for:

Fees range from hundreds to thousands of dollars
Often 0.25% to 0.5% of the purchase price
You usually don’t see these fees until after you’re under contract

Maryland law protects buyers here—you have:

5 days to review HOA docs
7 days for condos
Full right to cancel during that window, no penalty

✅ Buyer Tip: Ask upfront if a resale package includes any capital contribution fees or surprise assessments.

4. 🏅 First-Time Homebuyer Credit (But You Have to Ask)

Modern row of townhouses at sunset, featuring dark brick and white accents. Cars parked on street, trees and grass enhance a serene setting.

Maryland gives qualified first-time buyers a break from part of the recordation tax, which can save you 0.25% of the purchase price.

For a $500,000 home, that’s a $1,250 savings.

Requirements:

You haven’t owned a home in the past 3 years
You’ll occupy the home (no investors)
You must elect this credit in writing before closing

✅ Buyer Tip: Don’t assume your lender or agent will apply it—you must proactively request it and verify on your closing documents.

5. 🧾 Ground Rent (Yes, It Still Exists)

View of a cityscape with tall buildings under a clear sky. A road leads into the skyline, flanked by parked cars and small businesses.

Unique to Maryland—especially in Baltimore City—some properties are subject to

ground rent.

What is it?

You own the structure but rent the land
Annual payments are typically $50–$150, but can be higher
If unpaid, it can even result in foreclosure

✅ Buyer Tip: Ask your title company: “Is there ground rent on this property?” If yes, request that the seller redeem it before closing.

Bonus: If a seller fails to disclose ground rent, they’re responsible for paying it until you move out.

🧭 Final Thoughts: Buy Smart, Not Just Fast

Maryland is a beautiful state with strong communities—but its real estate quirks can be costly if you’re unprepared.

By understanding the taxes, timelines, and hidden fees that come with buying a home here, you’ll protect your money, your time, and your peace of mind.