Homebuyers in Nevada are still finding great deals in a housing market that has been slow to recover from the housing bubble. As of 2018, the average home value was $191,600, far off the pre-2008 average price of $311,000. According to real estate site Zillow, home values in the state are expected to rise about 19% within the next year. 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. That relief can also be felt in the average closing costs on home purchases.

The state’s closing costs are nowhere near the highest in the nation and are slightly lower than the national average. Nevada homebuyers can expect to pay anywhere from 2 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 $980. The average fees charged by third-parties involved in the transaction are $1,052, which brings the total average closing costs to $2,031, just above the national average of $2,084. At $1,891, neighboring Utah has among the lowest closing costs in the country. New York, Hawaii, and Delaware have the highest closing costs with more than $2,300 each.

On average, home buyers pay the lender $58 for document preparation, $878 for the origination fee and $80 for tax services. Third party charges include $447 for an appraisal, $501 for closing or settlement, $25 for credit reports, $12 for flood certification, $100 for postage or couriers and $500 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.

The loan origination or lender 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.

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

In Nevada, the title company handles all of the legal aspects of settling escrow, for which it charges a settlement or closing fee.

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.

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.

The buyer typically pays the cost for a pest inspection, and, if they request it, the cost of a home inspection.

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.

The Bottom Line

You don't have to live in Las Vegas or Reno to get the most out of Nevada. And although gambling revenue makes up a big portion of the state's economy, you don't have to set up shop near a casino to benefit. The state has a lot to offer, including a dry climate, lenient tax laws, low home prices, and low closing costs. But before you make that big purchase, it's a good idea to know just how much closing costs can average in the state. 

New Mexico (NM): Average Closing Costs

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