Kentucky Real Estate Closing Costs for Buyers


Clever Real Estate


April 30th, 2019


If you’re thinking about buying a home in Kentucky, it’s extremely beneficial to learn about potential closing costs that may dramatically increase the overall purchase price of your potential new home. Some of these costs may even be avoidable through negotiation, subsidies, and rebates.

Ah, closing time...time for you to go back to the places you will be from. Thank you, Semisonic, for these cryptic, yet poetic lyrics that deeply spoke to our middle-school souls. Did you tirelessly contemplate these poetic words, adding them to your AIM away message and scrawling them on rubber-soled Converse with permanent marker? Well, we sure did. Twenty years later, and we’re still not sure what they mean.

Lucky for us, when it’s closing time on your Kentucky home, deciphering closing costs is relatively straightforward, or at least less ambiguous than the lyrics this late-90’s ballad. Partnering with a local real estate agent can help anticipate closing costs to better prepare you for what to expect.

Want to sell your house with the assistance of a top-rated, Kentucky buyer’s agent? Clever can help! Fill out our online form and we’ll be in touch to answer any questions you might have and introduce you to one of our local Partner Agents for a no-obligation consultation.

Closing Costs for Kentucky Homes: What to Expect

The general rule across the country is that home buyers pay the lion’s share of closing costs. They can expect to fork over anywhere from 2-5% of the home’s sale price, regardless of location. According to Bankrate, Kentucky home buyers pay an average of $1,907 in closing costs.

This average total didn’t account for certain variable closing costs, including title insurance, title search, taxes, other government fees, escrow fees and discount points. The median home price in Louisville is $167,500. For this purchase price, buyers would pay an average of $3,350-$8,375.

Common Closing Costs for Kentucky Home Buyers

According to Bankrate, Kentucky buyers can expect to pay for a host of closing costs, which seem to increase exponentially if you mortgage your home, which, let’s be honest most of us do! Below is a list of common closing costs buyers should expect to pay.

Origination Fees Charged by Lender

  • These ‘fees’ encompass a variety of actions taken by the lending association which are then transferred to you, the borrower. Documentation fees, origination points, commitment fees, underwriting, and other line items make up a large portion of this closing cost.

Third-Party Fees

  • Inspection, appraisal, credit report, flood certification and attorney fees also stack up during real estate transactions and will vary depending on the third party you choose.

Other Costs to Consider

Regardless of the state your in, home owning takes on a much different financial shape than renting. A lot of home buyers think that purchasing is their ticket to financial freedom and independence. While this can certainly be true, there are often unforeseen costs that arise during the first year of homeownership.

Utilities and maintenance can be huge charges throughout home ownership. If you’re moving from an apartment into a home, you’re now responsible for your own utilities, water, trash and miscellaneous repairs. Horrific plumbing disaster in the middle of a blizzard? Get the checkbook out.

In addition to unforeseen instances, homeowners also have to pay property taxes, homeowners insurance, and mortgage insurance (if you put less than a certain amount down) initially. Financial stability is of the utmost importance when purchasing a home.

How to Save on Closing Costs in Kentucky When Buying a Home

First, you shell out a quarter million for a home and next, you’re obligated to pay the equivalent of a 2015 Toyota Camry in closing costs just for some third party to process paperwork and tell you the roof won’t leak! I mean, where does it end? Well, here’s the silver lining — buyers can save on closing costs in a few simple ways.

Negotiating with the seller is the quickest, easiest way to save on closing costs. Relying on a local Partner Agent for their market knowledge and negotiating skills could end up saving you thousands. If the market favors the buyer or if the house has been listed for a while, you might end up paying next to nothing in closing costs.

Kentucky offers a variety of down-payment and closing cost assistance programs for first-time buyers. To see if you qualify, check out thestate’s housing website for requirements.

In addition to these gems, Clever Partner Agents offer a Home Buyer Rebate of $1,000 to home buyers, which can be applied to closing costs. You won’t have to scramble for funding, worry about winning negotiations, or apply for government assistance by utilizing this give-back.

While purchasing a home may seem daunting, just close your eyes and let the sweet melody of “Closing Time” swaddle you in nostalgia — remembering that, “every new beginning comes from some other beginning’s end.”

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