In 2016, Idaho is experiencing one of the hottest housing markets in the country. With a median home value of $175,000, housing prices have rebounded more than 20% from their 2011 lows, but they are still off their pre-housing bubble peak of $195,000. Home buyers are paying a price for the resurgence with less than a one-month supply of homes for purchase, which is driving up prices faster than people can buy them. New home construction is up, but not enough to fill the void of low resale inventory.

Home buyers in Idaho pay among the lowest average closing costs in the country. They can still expect to pay between 3 and 5% of the home's value in closing costs, which can vary widely depending on the market, the lender and the property. As a basis for comparison, it helps to know the amount of average closing costs paid by home buyers in the state.

Average Closing Costs in Idaho

On average, home buyers in Idaho pay $894 in lenders fees and $788 for third-party fees, for a total of $1,682 in average closing costs. This is well below the national average of $1,847 in closing costs. In fact, Idaho's average closing costs are the second-lowest in the nation, just above Ohio with $1,613. Hawaii, Connecticut and New Jersey have the highest closing costs at more than $2,000 each.

Idaho home buyers pay an average of $80 for document preparation, $925 for origination fees, $76 for tax services, $453 for a home appraisal, $450 for closing or settlement costs, $21 for a credit report, $125 for a pest inspection, $100 for courier services and $549 for a survey. Title insurance fees can add as much as $1,000 to the total closing costs. Prepaid items, such as property taxes and homeowners insurance, are also not included.

What Goes Into Closing Costs?

Closing costs for Idaho home buyers tend to vary based on the lender and the market. However, the following closing costs are commonly found on the good faith estimate provided by Idaho lenders.

• Loan origination or lender fees: This is an all-inclusive fee charged by the lender to cover the cost of processing the loan through funding. It is typically calculated as a percentage of the home's value, and is expressed in points, with 1% equaling one point. Home buyers who wish to negotiate for a lower interest rate can do so by adding points to their closing costs.

• Appraisal fee: Lenders order an appraisal to verify that the sale price is reasonable, based on the property value and comparisons with other homes in the area.

• Settlement/closing fee: In Idaho, the title company handles the legal aspect of closing escrow. However, if a home buyer wants to hire a private attorney, he pays the costs on his own.

• Title Insurance: The home buyer is responsible for purchasing title insurance on the lender to protect it against any title defects. The seller is required to purchase title insurance on the buyer to guarantee a clear title.

• Tax services: Because the lender is subordinated to tax liens on the property, it may set up an impound account for future property tax payments. The lender monitors the account to ensure payments are current.

• Survey: On some properties, lenders may require a survey to ensure the integrity of the property lines. This is done to avoid any property line issues that might arise.

• Home inspection: The buyer typically pays the cost for a pest inspection, as well as the cost of a home inspection, if requested.

Seller Closing Costs

The seller is responsible for paying the sales commission and covering the cost of title insurance on the buyer. Additional closing costs include property transfer tax, property taxes owed, title search, a home warranty and escrow fees. The seller can expect to pay approximately 1% of the sale price in closing costs.

California (CA): Average Closing Costs

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