Congratulations! You’re just steps away from receiving the keys to your new Nevada home. But before you officially get the keys, one of the last steps is paying closing costs.
Closing costs are the fees and expenses associated with completing a real estate transaction and transferring ownership of the property from seller to buyer. Don’t worry if you feel unprepared or overwhelmed. To help you budget for closing costs, this Redfin article will explain how much closing costs are in Nevada, who pays them, and what you can expect to pay as a buyer and seller.
What are the average closing costs in Nevada?
In addition to a down payment, homebuyers also need to pay closing costs to get the keys to their new home. As a general rule of thumb, you can expect Nevada closing costs to be 2%-5% of the purchase price. However, keep in mind that closing cost amounts depend on many factors, such as the purchase price of the home, the type of loan and any adjustments negotiated with the seller.
For example, if you buy a home in Henderson where the average sales price is $495,000, closing costs may range from $9,900 to $24,750. Or, let’s say you want to buy a home in Las Vegas, where the average sales price is $440,000. Closing costs for a home here can range from $8,800 to $22,000.
Who Pays Nevada Closing Costs?
So, who pays Nevada closing costs? In most transactions, the buyer and seller will pay closing costs. However, the amount of closing costs for each party will vary based on how much they need to pay. Keep in mind that it’s common for the buyer to pay closing costs out of pocket, while the seller’s closing costs are usually deducted from the home sale proceeds.
Nevada buyer closing costs
Closing costs for Nevada buyers typically range from 2%-5%. In most cases, you will pay a deposit, usually 1% to 3% of the home price, once the two parties come to an agreement during the home buying process. This deposit will be deducted from your closing costs, reducing the total due at closing. Let’s take a closer look at some common closing costs that buyers pay:
- Appraisal fee: Home appraisals typically range from $300 to $500 and are usually paid separately at the time of service. However, if not, you will need to pay a fee at closing.
- Inspection fees: Although not required, a home inspection is highly recommended. The cost of a home inspection generally ranges from $300 to $500 and is usually paid at the time of service. However, if not, payment will be required at closing.
- Loan origination fee: Most lenders will charge you a loan fee. Be sure to check with your lender what this fee covers and whether it can be waived or negotiated.
- Loan processing fee: Lenders may also charge a fee for loan processing, including underwriting and related services. Similar to the origination fee, check with your lender to understand its purpose and possible exemptions.
- Loan discount points: If you purchase discount points to lower your interest rate, you’ll pay a one-time fee at closing. These points can lower your rates by 0.25% to 0.5%, but consider your long-term homeownership plans before paying the reduced rate.
- Private Mortgage Insurance (PMI): If the down payment is less than 20%, PMI may charge an upfront fee at closing, depending on the loan type. It is usually part of your monthly payment, but some loans offer the option of paying it as a one-time fee.
- Title Insurance: Title insurance is a one-time fee paid as part of the closing costs. Buyers often carry both lender and owner title insurance.
- Home Insurance: In Nevada, your annual homeowners insurance premium may be part of your closing costs.
- Homeowners Association Dues: If your property is part of a homeowners association, you may be required to pay one month’s dues up front at closing. These fees vary and add to maintenance and operating costs.
- property tax: As part of your Nevada closing costs, you may be required to prepay a portion of your property taxes at closing.
Nevada Seller Closing Costs
In Nevada, a seller’s closing costs vary with each transaction. Here are some common fees and costs incurred by sellers:
- Real estate agent commission fees: These fees can be a significant cost for sellers. Commission fees may vary and are subject to negotiation. Sellers should discuss their options with an agent.
- Homeowners Association Fees: If the property is part of an HOA, the seller may be required to pay various fees. These fees may include HOA transfer fees, outstanding payments, and fees that may be incurred to obtain the HOA documents required by the buyer. The exact fees will depend on the HOA’s rules and regulations.
- property tax: The seller is responsible for any property taxes accrued but not yet paid prior to the closing date. These unpaid property taxes are usually prorated based on the months you owned the property.
- Title Insurance: Owner’s title insurance is another common closing cost paid by the seller in Nevada.
- Transfer tax: Nevada imposes a state tax on the transfer of property ownership. The seller may be required to pay a one-time transfer tax as part of the closing costs. Local governments (such as counties and cities) may also impose additional taxes.
Median home sales price data from the Redfin Data Center for July 2024.
