Cover photo by Mikhail Nilov
The completion of a real estate transaction is called “closing,” and it is during this stage that the buyer and the seller settle the fees and charges associated with the purchase of the property.
In Iowa, the closing costs for sellers typically include the title and closing service fees, owner’s title insurance policy, and recording fees. Buyer incentives, pro-rated property taxes, and attorney fees are some of the optional costs.
On the other hand, buyers usually pay for mortgage, appraisal, and inspection fees. Read on to learn more about the closing costs in Iowa.
Photo by Alena Darmel
The Average Closing Costs in Okoboji, Iowa
As a general rule, Iowa closing costs amount to around 2% to 5% of the property’s value. Given the median home value in Iowa, a $193,295 home will incur closing costs ranging from $3,866 to $9,665. This does not include variable costs, such as title insurance, title search, taxes, other government fees, escrow fees, and discount points.
It is important to note that the fees will vary significantly depending on your lender, where you buy, and the actual price of the house.
The Average Closing Costs for Sellers in Okoboji, Iowa
On average, a seller in Iowa can expect to pay 2.70% of their home’s final sale price in closing costs. For a $193,295 home, the median home value in Iowa, a seller can pay around $5,226.
The table below shows the average seller’s closing costs in Iowa:
| Iowa Seller Closing Costs | Average Rate | Average Cost |
|---|---|---|
| Title Service Fees | 0.30% | $578 |
| Owner's Title Insurance | 0.32% | $625 |
| Recording Fees | 0.01% | $17 |
| Buyer Incentives | 2% | $3,866 |
| Other Costs | Varies | Varies |
| Total | 2.70% | $5,226 |
It is important to note that the example in the table above is based on a sale price of $193,295, the typical home value in Iowa, as of August 31, 2022.
Also, keep in mind that closing costs in Iowa do not include realtor fees, which are typically paid by the seller. Realtor fees amount to 5.66% of the home sale price, on average.
Photo by RODNAE Productions
The Average Closing Costs for Buyers in Okoboji, Iowa
The closing costs for a buyer in Iowa varies based on your mortgage. Additional fees and charges may apply, depending on where you’re buying and your agreement with the seller.
Below, we’ve outlined the costs that most buyers in Iowa can typically expect to pay at closing:
| Iowa Buyer Closing Costs | Average Cost |
|---|---|
| Loan Origination Fees | 1% of loan value |
| Mortgage Application Fee | $25 to $150 |
| Appraisal Fee | $300 to $1,000 |
| Points on Mortgage | Varies |
| Wire Transfer Fee | $10 to $50 |
| Flood Certification Fee | $15 to $25 |
| Private Mortgage Insurance Application Fee | Varies |
| Home Inspection Fees | $300 to $1,000 |
| Credit Report | $30 to $50 |
| Survey Fee | $85 to $600 |
| Prepaid Homeowner's Insurance | Varies |
| Mortgage Interest | Varies |
| Property Taxes | Varies |
| Lender Title Insurance | Around 0.1% of home sale price |
| Mortgage Transfer Taxes | Varies |
Photo by RODNAE Productions
The Best Way to Budget for Your Closing Costs
Keep in mind that closing costs in Iowa, on average, range from 2% to 5% of the home’s value. Given this and the median price of homes in Iowa which is $152,200, you’d want to allocate around $4,566 in closing costs.
Tips to Home Buyers or Sellers on How to Save on Closing Costs
Whether you’re buying or selling a home in Iowa, closing costs are something you’d want to lower. Below are some of the ways you can save on closing costs.
Negotiate
Despite the local conventions on dividing closing costs responsibilities, who pays what is not set in stone. When you’re negotiating a purchase agreement, you can request the other party to cover fees or taxes you’d typically pay. You can ask them to contribute a lump sum toward your overall closing costs.
Shop Around for the Best Rates
Once you know the closing costs you need to pay, shop around and find the best rates on title services, attorney fees, insurance premiums, and other fees.
Photo by RODNAE Productions
Get Discounted Listing Fees or a Home Buyer Rebate
One of the best ways to save on your home sale or purchase is to find a realtor who charges low commission rates or offers home buyer rebates.
Conclusion
I hope you found this article helpful, but I know that closing costs can be overwhelming, especially for first-time buyers. If you’re considering buying a house in Okoboji, Iowa, it’s best to have a reliable realtor by your side and I’ll be happy to help!
Feel free to give me a call today at 712-336-4000 and let’s start planning for your new home.
Frequently Asked Questions
How much are closing costs in Iowa?
The average closing costs in Iowa range from 2% to 5% of the property’s value. Given the median home value in Iowa, a $193,295 home will incur closing costs ranging from $3,866 to $9,665.
What are the standard closing costs in Okoboji, Iowa?
In Iowa, the standard closing costs for sellers include the title and closing service fees, owner’s title insurance policy, and recording fees. For buyers, the closing costs are mortgage, appraisal, and inspection fees.
Why do some closing costs vary from state to state?
Some closing costs vary from state to state because of the differences in the laws and customs governing the closing process, as well as the tax differences.
How can I save money on my closing costs?
Once you know the closing costs you need to pay, shop around for the best rates on title services, attorney fees, insurance premiums, and other fees. You can also find a realtor who charges low commission rates or offers home buyer rebates. And, lastly, you can ask the buyer/seller to cover the fees or taxes you’d be paying.
