How Much Does It Cost to Buy a House in Alaska?

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By Jon Stubbs Updated May 17, 2024

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The average home buyer in Alaska spends between $28,207 and $99,340 when purchasing a $354,563 home — the state median value.

Keep in mind, this is just the cost of buying a home. After you close, you'll still need to budget for all the ongoing costs of homeownership.

If you're looking for ways to cut down on the costs of buying a home, Clever Real Estate can help. We're an agent-matching service that can help you compare real estate agents in your local area. All of our agents offer local expertise to keep more money in your pocket.

Clever will connect you with a top local agent and send you a check after closing. Contact Clever for full-service realtor recommendations.

Average closing costs in Alaska

Expense Amount
Earnest money deposit (1-3%) $3,546 to $10,637
Down payment (3.5-20%) $12,410 to $70,913
Cash reserves $3,797 to $5,696
Closing costs (1.90%) $6,723
Inspection $249
Appraisal $233
Moving $1,250 to $4,890
Total $28,207 to $99,340
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Buyer closing costs in Alaska

While the other costs to buy a house in Alaska are pretty transparent, Alaska closing costs are a bit more nuanced. They're actually a series of smaller costs lumped together into one total. Here's a breakdown of all of the Alaska closing costs you'll likely pay when buying a home.

Closing cost Amount
Closing fee $355
Recording fee $89
Title service fees $553
Origination fee $1,773
Underwriting fee $600
Discount points $2,837 per point
Lender's title insurance $517
Owner's title insurance Typically paid by seller
Prorated property tax Varies
Transfer tax N/A
Total $6,723
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Does the buyer or seller pay closing costs in Alaska?

The seller typically pays the bulk of the closing costs in Alaska. The seller is responsible for costs like title insurance, real estate transfer tax, and recording fees. The seller also pays their listing agent.

Traditionally, the seller has covered the buyer's agent fees as well. However, a November 2023 lawsuit decision against the National Association of Realtors makes it likely that buyers will be responsible for their own agent's fees going forward.

Will the NAR lawsuit change how real estate commission works?

On March 15, 2024, the National Association of Realtors agreed to pay $418 million in damages to settle a real estate commission lawsuit the industry group lost in November 2023. 

While the full impact of the settlement is yet to be determined, experts believe that the change will eventually lead to lower buyer's agent commissions and give buyers the ability to negotiate those commissions based on the services they need. 

The terms of the settlement are scheduled to take effect in mid-July 2024. But, the settlement hasn't been officially approved yet, and it could be delayed or changed by objections. We'll continue to monitor the status of the settlement and the effects it has on the real estate industry.

» READ MORE:

Keep in mind, closing costs are often negotiable. Motivated sellers will sometimes agree to pay for some of the buyer's closing costs. However, to win the negotiation battle, you'll need a great agent who can work out a deal with the seller. Clever can match you with a top agent in your area that can get the seller to shoulder more of the above costs.

Contact us at Clever for top agent recommendations.

Cost to buy a house in Alaska calculator

Ongoing costs of homeownership in Alaska

Unfortunately, the cost to buy a house is just the beginning. After closing, you'll officially own the home and begin paying for the ongoing costs of homeownership.

Besides the expenses outlined above, you'll also want to consider private mortgage insurance (PMI) and homeowner's association (HOA) fees.

  • If you pay less than 20% as a down payment on your house, you'll probably have to pay PMI monthly until you get to 20% equity. For the average Alaska homeowner, this is between $154 to $522 a month.
  • Some neighborhoods have HOA fees for the care and maintenance of common areas. The national average is around $250 per month.

» MORE: The true cost of homeownership

Top ways to save money when buying a house in Alaska

1. Look into better financing options

Paying off debts and getting your credit in the best shape possible before applying for a loan will help you get a better interest rate, which will lower your monthly payments for the life of the loan.

You can also shop around to compare lenders so you get the lowest fees and interest rates available. It may be a good idea to enlist the help of a mortgage broker if you're not sure how to go about vetting lenders.

2. Participate in home buyer programs in Alaska

The HUD provides numerous FHA-insured loans for eligible buyers, such as its purchase mortgage, "rehab & repair" mortgage, and energy-efficient mortgage.

Meanwhile, first-time home buyers may find Alaska Housing Finance Corporation’s (AHFC) first-time home buyer loans helpful for purchasing the home of their dreams. The AHFC also offers closing cost assistance of up to 4% of the initial principal balance of the mortgage loan for Alaska residents with a minimum credit score of 640.

» MORE: First-time home buyer programs everyone should know about

3. Partner with an expert agent

Having an expert agent on your side can ensure you win the negotiating battle with the seller.

Clever can help match you with a knowledgeable, hyper-local agent that knows the ins and outs of how to save you money on your local fees. And best of all, our service is totally free!

👋 Find your perfect agent now!

Finding a great local realtor is the first step in making your home buying dreams a reality. Our free service matches you with top agents from trusted brands like Keller Williams and RE/MAX.

Enter your zip code to request hand-picked agent matches in minutes. Compare your options until you find the perfect fit, or walk away with no obligation. Try Clever's free service today!

Methodology

The Clever team of researchers gathered data for property taxes, transfer taxes, and recording fees using publicly available information. We found average costs for attorney fees, title insurance, and other services by requesting quotes from local providers. 

Home values are based on Zillow data as of March 2024.

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