When it comes to buying a home in Kentucky, it’s important to factor in closing costs along with the purchase price. Closing costs are the final expenses that must be paid to complete a real estate transaction, including taxes, lender fees, and title insurance.
In this informative post from Redfin, we will delve into the average closing costs in Kentucky, who typically covers these costs, and what buyers and sellers can expect to pay. From lender fees to insurance, we will provide a breakdown to help you budget effectively and streamline your home-buying process.
How much are closing costs on average in Kentucky?
Aside from the down payment, homebuyers in Kentucky should budget for closing costs, which typically range from 2% to 5% of the home’s purchase price. However, the total amount can vary based on factors such as the home price, loan type, and negotiations with the seller.
For instance, if you are purchasing a home in Lexington with a median sale price of $329,475, closing costs could be between $6,590 and $16,474. Similarly, buying a home in Louisville with a median sale price of $267,000 could result in closing costs ranging from $5,340 to $13,350.
Who pays closing costs in Kentucky?
In most cases, both the buyer and seller share the responsibility of paying closing costs in Kentucky. The specific amount each party pays can vary, with buyers typically covering their costs out of pocket and sellers having their costs deducted from the sale proceeds.
Buyer closing costs in Kentucky
Buyers in Kentucky can expect to pay between 2% to 5% of the purchase price in closing costs. Common expenses covered by buyers include appraisal fees, inspection fees, loan origination fees, and title insurance.
- Appraisal fee: $300 to $500
- Inspection fee: $300 to $500
- Loan origination fee
- Loan processing fee
- Loan discount points
- Private mortgage insurance (PMI)
- Title insurance
- Homeowners insurance
- Homeowners Association dues
- Property taxes
Seller closing costs in Kentucky
Sellers in Kentucky may be responsible for covering real estate agent commission fees, HOA fees, property taxes, title insurance, and transfer taxes. These costs can vary, so it’s essential for sellers to be aware of all potential expenses.
- Real estate agent commission fees
- Homeowners Association fees
- Property taxes
- Title insurance
- Transfer taxes
Median home sale price data from the Redfin Data Center during July 2024.