survey fee
Another administrative aspect of the home pre-sale process involves professional surveying. During this stage, a surveyor visits the property to determine property boundaries to prevent future disputes with neighbors.
This service is performed by a local professional, who is compensated through an itemized closing cost.
title search fee
Background title searches are a standard part of the real estate transaction process. During this step, a title agency checks public records to see if there are any outstanding claims or liens on the property being sold.
The fee for doing this very important research is usually shared by the buyer and seller. It is processed upon completion.
tax transfer
In many states and cities, taxes apply when property ownership is transferred from one party to another. Sellers usually pay this fee, although some jurisdictions pass it on to the buyer or split it between the two parties.
No matter what the case, any appropriate title transfer tax is charged at closing.
underwriting fee
Before sanctioning a loan to a borrower, their financial standing must be verified. For example, the lending institution must verify the applicant’s credit score, employment, and income level.
The cost of performing this verification is known as the underwriting fee. This is the responsibility of the buyer.
How much are closing costs?
According to a 2021 Business Insider analysis, US pre-tax closing costs averaged approximately $3,470 in 2020. After taxes are included, this figure rises to just under $6,100.
The article also details average closing costs by state. After adding applicable taxes, the five highest cost jurisdictions were:
- District of Columbia ($29,330)
- Delaware ($17,727)
- New York ($13,262)
- Maryland ($11,710)
- Washington State ($11,513)
Tax-inclusive closing costs were lowest for:
- Missouri ($1,571)
- Indiana ($2,101)
- Kentucky ($2,229)
- Iowa ($2,272)
- South Dakota ($2,276)
