When purchasing or selling a home, the excitement of the process often comes with financial surprises. Among these are the real estate closing costs by state – which can vary significantly depending on where the transaction occurs.
These costs, while sometimes overlooked, are crucial to completing a property deal. Today, we’ll explore what closing costs entail, why they vary from state to state, and how a notary team like ourselves can assist in ensuring a smooth closing process.
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What are real estate closing costs?
Closing costs are fees paid by both the buyer and seller to finalize a real estate transaction – typically encompassing a range of services, such as title searches, appraisals, taxes, notary services, and lender fees. That said, they can vary significantly depending on your location, the type of property you’re buying, and other factors.
These costs are incurred on top of the property’s purchase price and are split between the buyer and seller, though the allocation can vary depending on local customs and negotiations.
For buyers, closing costs often include:
- Loan Origination Fees: Charged by lenders for processing the loan.
- Title Insurance: Protects against potential ownership disputes.
- Escrow Fees: Covers the cost of managing the transfer of funds and documents.
- Property Taxes and Prepaid Expenses: This may include prorated taxes or homeowners’ insurance.
For sellers, common closing costs include:
- Agent Commissions: A significant expense, typically 5–6% of the sale price.
- Title Transfer Fees: Covers the legal transfer of ownership.
On average, closing costs can range from 2% to 6% of the home’s purchase price, depending on the state and specific transaction details. Other closing costs encompass a wide range of expenses, also including:
- Government recording fees: Paid to the government to record the transfer of ownership.
- Attorney fees: If required by your state or for complex transactions.
- Courier fees: For delivering documents.
- Home inspection fees: For uncovering any potential problems with the property.
- Survey fees: To confirm the property’s boundaries.
The exact breakdown of these costs will vary depending on your location. Here’s where state-by-state variations come into play.
Why do real estate closing costs vary by state?
The disparity in real estate closing costs by state stems from several factors. The main ones include:
- State-Specific Taxes and Regulations
Some states impose higher transfer taxes or property taxes, contributing to a higher total closing cost. For example, Delaware has some of the highest closing costs in the nation, largely due to transfer taxes, while states like Missouri have significantly lower rates. - Market Conditions and Home Prices
In states with higher average home prices, such as California or Hawaii, closing costs tend to be higher because many fees are calculated as a percentage of the purchase price. Conversely, states with lower property values often have lower closing costs. - Service Provider Costs
The cost of appraisals, inspections, and legal services varies widely across states. States with a higher cost of living, like New York, generally see higher service fees compared to more affordable states like Arkansas. - Title Insurance Requirements
Certain states require more comprehensive title searches or additional insurance policies, which can add to the overall cost.
A breakdown of average real estate closing costs by state
The table below highlights how closing costs can differ across the U.S. To provide a few examples:
- District of Columbia: With an average home price of $769,351, the total closing costs (with taxes) average $29,888, making it one of the highest in the country.
- Missouri: At the opposite end, the total closing costs average only $2,061, thanks to lower home prices and minimal additional fees.
- Florida: With an average home price of $375,386, closing costs are $8,554 with taxes, falling into the mid-range category.
Here is a complete sheet of real state closing costs by state:
| State | Avg Home Price | Avg Total Closing Costs With Taxes | Avg Total Closing Costs Without Taxes | Percentage of Sales Price (With Taxes) |
| District of Columbia | $769.351,00 | $29.888,00 | $6.502,00 | 3,90% |
| Delaware | $329.931,00 | $17.859,00 | $3.888,00 | 5,40% |
| New York | $538.102,00 | $16.849,00 | $6.168,00 | 3,10% |
| Maryland | $400.544,00 | $14.721,00 | $4.459,00 | 3,70% |
| Washington | $579.524,00 | $13.927,00 | $4.862,00 | 2,40% |
| Pennsylvania | $248.561,00 | $10.634,00 | $4.221,00 | 4,30% |
| Connecticut | $419.149,00 | $8.821,00 | $4.108,00 | 2,10% |
| Florida | $375.386,00 | $8.554,00 | $4.498,00 | 2,30% |
| New Hampshire | $351.365,00 | $8.183,00 | $2.804,00 | 2,30% |
| Massachusetts | $604.986,00 | $7.964,00 | $4.904,00 | 1,30% |
| California | $793.424,00 | $7.953,00 | $5.665,00 | 1% |
| New Jersey | $461.488,00 | $7.915,00 | $4.158,00 | 1,70% |
| Vermont | $306.703,00 | $7.906,00 | $3.500,00 | 2,60% |
| Hawaii | $789.760,00 | $7.463,00 | $5.879,00 | 0,90% |
| Nevada | $426.220,00 | $6.383,00 | $4.222,00 | 1,50% |
| Virginia | $379.083,00 | $6.346,00 | $3.461,00 | 1,70% |
| Illinois | $283.313,00 | $5.929,00 | $4.733,00 | 2,10% |
| Michigan | $209.783,00 | $5.714,00 | $3.511,00 | 2,70% |
| Rhode Island | $412.037,00 | $5.568,00 | $3.419,00 | 1,40% |
| Utah | $488.644,00 | $4.837,00 | $4.837,00 | 1% |
| Arizona | $409.930,00 | $4.701,00 | $4.701,00 | 1,20% |
| Texas | $302.572,00 | $4.548,00 | $4.548,00 | 1,50% |
| Maine | $330.505,00 | $4.420,00 | $2.864,00 | 1,30% |
| Oregon | $466.466,00 | $4.327,00 | $3.862,00 | 0,90% |
| Ohio | $207.480,00 | $4.223,00 | $3.346,00 | 2% |
| Idaho | $424.023,00 | $4.082,00 | $4.082,00 | 1% |
| Minnesota | $296.790,00 | $4.011,00 | $2.592,00 | 1,40% |
| Tennessee | $280.571,00 | $3.911,00 | $2.694,00 | 1,40% |
| Colorado | $356.795,00 | $3.881,00 | $3.806,00 | 0,70% |
| Georgia | $294.171,00 | $3.762,00 | $2.863,00 | 1,30% |
| Louisiana | $223.523,00 | $3.711,00 | $3.386,00 | 1,70% |
| Alaska | $348.526,00 | $3.581,00 | $3.581,00 | 1% |
| New Mexico | $316.010,00 | $3.513,00 | $3.513,00 | 1,10% |
| Wisconsin | $236.119,00 | $3.459,00 | $2.692,00 | 1,50% |
| South Carolina | $298.817,00 | $3.447,00 | $2.501,00 | 1,20% |
| North Carolina | $306.300,00 | $3.406,00 | $2.642,00 | 1,10% |
| West Virginia | $191.011,00 | $3.406,00 | $2.465,00 | 1,80% |
| Montana | $406.544,00 | $3.337,00 | $3.337,00 | 0,80% |
| Iowa | $201.306,00 | $3.146,00 | $2.741,00 | 1,60% |
| Arkansas | $204.451,00 | $3.115,00 | $2.281,00 | 1,50% |
| South Dakota | $232.564,00 | $3.105,00 | $2.843,00 | 1,30% |
| Alabama | $216.931,00 | $2.986,00 | $2.623,00 | 1,40% |
| Oklahoma | $188.999,00 | $2.983,00 | $2.507,00 | 1,60% |
| Kentucky | $202.108,00 | $2.802,00 | $2.546,00 | 1% |
| Kansas | $284.057,00 | $2.793,00 | $2.793,00 | 1% |
| Nebraska | $247.363,00 | $2.781,00 | $2.210,00 | 1% |
| Mississippi | $268.416,00 | $2.756,00 | $2.756,00 | 1% |
| Wyoming | $352.788,00 | $2.589,00 | $2.589,00 | 0,70% |
| North Dakota | $243.312,00 | $2.501,00 | $2.501,00 | 1% |
| Indiana | $223.534,00 | $2.200,00 | $2.200,00 | 0,90% |
| Missouri | $245.985,00 | $2.061,00 | $2.061,00 | 0,80% |
How a notary can help with real estate closing costs
A notary public plays a vital role in ensuring the legitimacy of documents during a real estate closing. They verify the identities of all parties signing the closing documents and witness their signatures – so this helps prevent fraud and protects your investment.
While a notary may not directly reduce your closing costs, their services ensure a smooth and secure closing process. Moreover, a notary can explain the closing documents to you, ensuring you understand what you’re signing and why.
Breaking down, here’s how a notary can assist:
- Document Authentication: A notary ensures that all closing documents are properly signed, witnessed, and authenticated, reducing the risk of disputes or fraud.
- Compliance With Local Regulations: Every state has unique laws governing real estate transactions. A professional notary is well-versed in these requirements, ensuring all paperwork aligns with local standards.
- Convenience and Flexibility: Mobile notary services can travel to your location, allowing for a more convenient and stress-free closing process. This is particularly helpful for out-of-state buyers or sellers who may not be able to attend the closing in person.
- Error Prevention: Errors in closing documents can lead to costly delays. A notary’s meticulous approach helps prevent mistakes, ensuring a smooth and timely transaction.
At Mobile Notary Orlando, we understand the complexities of real estate closings in Florida. Our experienced and certified notaries can guide you through the closing process, ensuring all documents are signed and notarized correctly. We offer flexible scheduling and convenient mobile notary services, making the closing process as stress-free as possible for you!
Simplify real estate closing costs by state with a notary public
Understanding real estate closing costs by state is essential for any buyer or seller navigating the housing market. All in all, these costs can vary widely due to state-specific taxes, local service provider fees, and property values, underscoring the importance of preparation and attention to detail.
A notary’s role in the closing process cannot be overstated – as they ensure all documents are correctly executed and compliant with local laws. For those in Orlando, we offer unparalleled expertise and convenience, making your real estate transaction as smooth as possible.
When you’re ready to finalize your next property deal, trust Mobile Notary Orlando to safeguard your investment. Contact us today to schedule your notary services and experience the peace of mind that comes with professional support!
