Buying and/or selling a home can be one of the most stressful, yet satisfying moments in your lifetime. There are a lot of moving parts that come into play and it often requires the help of a proven professional, but buying or selling a home symbolizes the start of something incredible when all is said and done.
For those that are buying or selling a home for the first time, it’s common to be met with a wide variety of surprises throughout the process – some more surprising than others. While we all want the process to be simple, fast, and easy, the truth is that’s not always the case – though there are some exceptions to that.
With so many factors to the overall cost of buying or selling a home, both parties need to be prepared for anything. Once a property or home value is agreed upon, there are a number of other costs that need to be accounted for before the home is transferred – some of the most important being the closing costs.
Who Pays Closing Costs in Kansas?
Closing costs are expenses that are required in order to transfer the home from a seller to a buyer – a real estate transaction isn’t considered complete until closing costs are paid. Many first-time buyers and sellers are taken back by closing costs because they increase cost (buyer) and decrease profit (seller).
There are dozens of different expenses that are considered closing costs, some of which are paid by the buyer and some of which are paid by the seller. Closing costs — unlike monthly mortgage payments — are usually at the heart of the negotiation and can be the difference between a house selling or not selling, but not all closing costs are negotiable.
Closing Costs for Buyers in Kansas
It’s important for buyers to be aware of and prepared for closing costs when purchasing a Kansas City home – an expense that generally equates to 2%-5% of the home’s value. For a $200,000 home, buyers should expect to pay around $4,000-$10,000 in average closing costs. Considering the average home value in Kansas is $214,970, that would equate to $4,300-$10,750 in closing costs.
Here are some of the most common buyer closing costs in Kansas:
Loan Origination Fees
The loan origination fee is required by most mortgage lenders and usually amounts to about 1% of the total loan – the amount is determined by your credit score, loan amount, type of loan, and much more. This fee helps cover processing, underwriting, and executing the loan for your new home.
Escrow Account or Impound Account
An impound account, also known as an escrow account in some areas, is a deposit that helps pay for homeowner’s insurance, private mortgage insurance, flood insurance, property taxes, and other types of insurance on the home or loan. The account is maintained by the mortgage company.
Appraisal Fee
A home appraisal is often required by the mortgage company in order to assess the value of the home or property in question. It includes a home inspection and takes into account the housing market in the area. Most appraisal fees cost several hundred dollars, but give you a good idea of what the house is worth.
Title Insurance
In order to purchase a home, buyers must first obtain a title for the home. Title insurance is meant to protect both the buyer and mortgage company against title defects and issues – such as code violations and legal complications. It’s a must-have for any buyer and protects them if the sale goes south.
Closing Costs for Sellers in Kansas
Buyers aren’t the only ones who are expected to pay closing costs – sellers pay closing costs too, except they’re expected to pay much more. Estimated closing costs for sellers generally equate to 6%-10% of the home’s value. A $200,000 home would require around $12,000-$20,000 in closing costs. The average cost of a home in Kansas is $214,970, which is $12,900-$21,500 in closing cost.
Realtor Fee
Realtor fees are often split between the buyer’s agent and the listing agent. Also known as real estate commissions, realtor fees are generally paid by the seller, but can be negotiated during the selling process. The fees usually amount to 6% of the sale price, split evenly between the two agents.
Recording Fees
A recording fee is charged by the county in which the sale is taking place and generally costs around $125 – it’s typically paid by the seller, but can be negotiated. The overall cost will vary from county to county and it covers the cost of registering a property’s transfer of ownership.
Escrow Fee
Escrow fees cover everything from attorney fees, commissions, origination fees, property taxes, homeowner’s insurance premiums, and title insurance premiums. These expenses are generally split between the seller and buyer. Money is put into an escrow and distributed to the necessary parties.
Home Inspection Fee
A home inspection is often required by the homebuyer to ensure there are no issues or problems with the home before it closes. The inspection uncovers damage to the home, repairs needed, and potential areas of concern. A typical inspection costs between $300 and $450 and is usually paid by the seller.
How Much Are Closing Costs in Kansas?
Closing costs are going to vary for each buyer and seller – not only because they have different expenses to consider, but they can also negotiate on some of those expenses (some are non-negotiable). Not being able to meet these requirements can result in your real estate transaction slipping through your fingertips.
Outside of the expenses explained above, here are some of the other closing costs when buying a home:
- Credit Report Fee
- Homeowner’s Insurance
- Property Taxes
- Underwriting fee
- Down payment
- Flood Certification Fee
Are you interested in selling your home? Do you dream of a scenario where you get to sell your home fast with little-to-no hassle? Are you in a rush to sell your home or growing tired of how long it’s been on the market? If you answered ‘yes’ to any of those questions, then you need to speak with Troy Kearns.
At Sell Your House Fast KC, our main priority is helping homeowners sell their home no matter what situation it’s in – facing foreclosure, difficulty refinancing, probate issues, missed payments, code liens, clouded titles, and more. We even buy homes that are in need of repairs – so contact us for a quote!
You can reach us at (816) 280-4138 or email us at tk@lacasaglobal.com – we can’t wait to get the ball rollin’ so you and your family can begin the move-out process.
