Average Closing Costs in Kansas

Buying a home in Kansas offers one additional benefit, which is that real estate closing costs in the state rank on the low end of the national average. For a $200,000 home purchase in Kansas, total closing costs average $1,800. As many as a dozen or more individual fees comprise total closing costs, some of which are fixed and others variable, based on the purchase price. Therefore, while a more expensive home purchase almost always means higher closing costs, the increase is not proportional, and buyers of expensive homes actually pay a lower percentage of the purchase price in closing costs.

Closing costs in Kansas sit on the low end of the national average range. Closing costs for a $200,000 home purchase range from $1,800 to $2,000 in most states. Buyers in Kansas also pay lower closing costs than in most neighboring states. Of the four states that border Kansas, only Oklahoma has lower average closing costs. 

Overall, real estate shoppers in Kansas enjoy a broad gamut of options. People seeking big city living, upscale suburbs, a smaller town vibe or a rural setting can find all of that in Kansas. In Johnson County, the broad expanse of Kansas City suburbs that includes the cities of Overland Park, Olathe and Shawnee, buyers pay a premium to live in palatial homes, and enjoy access to country clubs, golf courses and the state's highest-rated schools. Those looking for a smaller city vibe can head to Topeka or Wichita, both of which offer stable economies, low-priced real estate and less congestion than Johnson County. Then there are the western reaches of the state, dotted with small towns where farm life still reigns supreme. 

What Goes Into Closing Costs

In Kansas, the majority of closing costs come from the bank or mortgage lender that provides the purchase funds at closing. Lender closing costs on a $200,000 home purchase in Kansas often exceed $1,000, with the remaining non-lender costs around $800 or less. The origination fee represents the largest lender closing cost. This is the fee that lenders charge for their time and effort in funding a real estate purchase. Usually, it is expressed as a percentage of the loan amount; as of 2016, it was 1% or less. Before the mortgage meltdown of the late 2000s, some mortgage companies made obscene profits on origination fees, charging as much as 4 or 5%.

Apart from the origination fee, most lenders charge a document preparation fee and a tax service fee, though in most cases these charges are under $100 each.

The remainder of Kansas closing costs get paid to various third-party entities involved in the transaction. They can vary based on the nature of the transaction. Not all non-lender closing costs apply to every real estate transaction in Kansas.

A survey fee, when it applies, usually represents the largest non-lender closing cost in Kansas. This fee pays to have a property survey conducted by a licensed professional who determines the exact boundaries of the property lines. Buyers get a survey either because their lender requires it or because they simply want the protection and peace of mind. The average survey fee in Kansas is $450 to $500.

A settlement fee applies to nearly all Kansas real estate purchases. The recipient is the real estate attorney or title insurance company representative who executes the closing by transferring the property title from the seller to the buyer. The amount of this fee in Kansas averages $450, or slightly more.

For buyers financing their home purchase, a home appraisal is almost always required. The bank or mortgage company wants to protect itself by not lending more money on a home than the home is actually worth. The cost of having an appraiser evaluate the home and property and compare it to recent nearby sales can range from $300 to $600, depending on the home's location and availability of comparable sales data. Most lenders also require a home inspection to check for termites and other pests, and to ensure structural integrity. A typical home inspection fee in Kansas costs between $100 and $150.

A courier fee of $100 or less, a credit report fee of $20 per bureau and a minimal flood certification fee represent the most likely remaining closing costs one might incur in Kansas.

Michigan (MI): Average Closing Costs

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