Homebuyers in Nevada are still finding great deals in a housing market that has been slow to recover from the housing bubble. As of May 13, 2016, the average home value was $217,000, up nearly 80% from the market low in 2012. However, it is still far off the pre-2008 average price of $311,000. With its low housing prices and non-existent state income taxes, Nevada is a magnet for people of bordering states looking for price and tax relief. However, there is not much relief to be found in closing costs on home purchases.

Although the state’s closing costs are nowhere near the highest in the nation, they are slightly higher than the national average and a few dollars more than neighboring California. However, because Nevada's average home value is less than half that of California, actual closing costs, which are based in part on the home sale price, are lower. Nevada home buyers can expect to pay anywhere from 3 to 5% of their home’s value in closing costs.

Average Closing Costs in Nevada

In Nevada, the average origination fees charged by lenders total $1,002. The average fees charged by third-parties involved in the transaction are $848, which brings the total average closing costs to $1,850, just above the national average of $1,834. At $1,697, neighboring Utah has among the lowest closing costs in the country. Hawaii, Connecticut and New Jersey have the highest closing costs with more than $2,000 each.

On average, home buyers pay the lender $80 for document preparation, $1,058 for the origination fee and $79 for tax services. Third party charges include $436 for an appraisal, $495 for closing or settlement, $21 for credit reports, $11 for flood certification, $125 for pest inspections, $100 for postage or couriers and $650 for a survey. Title insurance fees are not included in these averages because lenders have difficulty estimating them. However, these fees can add as much as $1,000 to total closing costs.

These average closing costs do not include the impound costs of prefunding property taxes, homeowners fees or private mortgage insurance for down payments less than 20%, which may be required in some cases.

What Goes Into Closing Costs

Closing costs in Nevada can vary based on the lender, the market and the type of home purchased. However, the following closing costs are typical for most home sales in Nevada.

Loan origination or lender fees: The fee is inclusive for covering many of the lender’s costs for origination, underwriting, document preparation and processing, and funding of the loan. Typically, the origination fee amounts to about 1% of the sale price.

Appraisal fee: Lenders require a property appraisal to ensure that the loan amount, which is based on the sale price of the home, is reasonable based on a comparison of other homes in the area.

Settlement/Closing fee: In Nevada, the title company handles all of the legal aspects of settling escrow, for which it charges a fee.

Title Insurance: All lenders require title insurance to protect against issues, such as liens or encumbrances, that are not discovered in a title search. In Nevada, the home buyer purchases title insurance on the lender, and the seller purchases title insurance on the buyer.

Survey: Some lenders may require that a survey be conducted on certain properties 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, and, if they request it, the cost of a home inspection.

Tax service: Since the lender is subordinated to tax liens, it protects itself by setting up a property tax payment account that it monitors to ensure payments are always current.

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. Sellers can expect to pay approximately 1% of the sale price in closing costs.

New Mexico (NM): Average Closing Costs

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