Buying a Home in October: Who Pays for What?

Closing on a home in the fall is exciting. The weather cools, the market slows, and you may even get an edge as a buyer. But October closings also bring an important question: What costs are you responsible for when you split the year with the seller?

Let’s break it down so you know exactly what to expect when you become a homeowner this fall.

Property Taxes

In New York State, property taxes are paid in installments, and when you close partway through the year, they’re prorated between you and the seller.

• How it works: If the seller already paid the year’s school or county taxes, you’ll reimburse them for the portion of the year you’ll own the home.
• Example: Close on October 15? You’ll cover your share from that date through the end of the tax period.

Utilities

Gas, electric, water, sewer, and even garbage pickup are usually cut off at closing and transferred to your name.

• How it works: Sellers are billed up until the day of closing. From the moment you take ownership, the bills are yours.
• Tip: Ask for a utility history so you’re prepared for monthly costs (and how they might change in winter).

Homeowners Insurance

Insurance is not prorated. Buyers are responsible for setting up a policy effective the day of closing, with the first year’s premium typically due upfront.

• How it works: Sellers’ policies end at closing, and yours starts immediately — no gaps allowed.

Mortgage Interest and Escrow

• Mortgage interest: Paid from the date you close through the end of the month. If you close on October 20, you’ll prepay interest for October 20–31, and your first full mortgage payment won’t be due until December 1.
• Escrow: Your lender may collect extra funds upfront for property taxes and insurance so they can pay them on your behalf.

HOA Dues (if applicable)

If the home is part of an association, dues may also be prorated. You’ll pay from the day of closing forward.

So, Who Pays What?

• Seller covers: Taxes, utilities, and HOA fees up to the day of closing.
• Buyer covers: Mortgage interest, escrow setup, insurance, utilities, and property taxes after closing.
• Shared: Taxes, HOA fees, or assessments are prorated so neither party overpays.

How Great Lakes Real Estate Helps

Navigating these details can feel overwhelming, but that’s where we come in. Our agents walk you through each item on the closing statement so you know what’s yours — and what isn’t. That way, there are no surprises when you get the keys in October.

The Bottom Line

Closing late in the year means splitting some costs with the seller. With the right guidance, you’ll understand exactly what you’re responsible for — and you’ll be able to settle into your new home without financial stress.

Thinking about buying before the year ends? Call Great Lakes Real Estate at (716) 754-2550 — we’ll make sure you know the costs from day one.