The average closing costs in Alaska are 0.86% to 1.15% of the home’s purchase price.
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Buyer closing costs in Alaska usually consist of one-time fees like loan origination fees, appraisal costs, title insurance and escrow fees.
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Sellers can contribute to some closing costs in Alaska, which can help reduce your overall homebuying costs.
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What are closing costs in Alaska?
While the seller might cover some closing costs, it is wise to budget 2% to 5% of your home’s purchase price for closing costs.
When you buy a home, the listing price is not your final bill. Closing costs are the often-overlooked expenses that accompany the purchase of a new home. Closing costs are fees and expenses, beyond the actual price of the home, that buyers and sellers pay during a real estate transaction.
It is important to budget for them as they can add up to thousands of dollars. These costs cover services rendered, such as appraisal fees, title insurance, attorney fees, property taxes and more.
Closing cost calculator for Alaska
Use this closing cost calculator to discover how much you will need to set aside for your new home, assuming an average Alaska closing cost percentage of 1.03%.
What closing costs are Alaska buyers responsible for?
If the home is $300,000, your closing costs could range from $6,000 to $15,000.
Buyers in Alaska are typically responsible for loan origination fees, appraisal costs, title insurance, escrow fees, property taxes and more. These costs can vary depending on the specific circ*mstances of the transaction, but here’s what you can expect to see in your Loan Estimate.
- Loan origination fees: These fees cover the cost of processing the loan application and are usually calculated as a percentage of the total loan amount.
- Appraisal costs: Lenders require an appraisal to assess the value of the property, and buyers are typically responsible for this expense.
- Title insurance: Both lender's title insurance (to protect the lender) and owner's title insurance (to protect the buyer) may be required and are typically paid by the buyer.
- Escrow fees: Escrow services, which facilitate the transfer of funds and documents between the buyer, seller and other parties, often come with associated fees.
- Property taxes: Buyers may need to pay a portion of the property taxes at closing, depending on the time of year and the terms of the sale.
- Home inspection fees: While optional, a home inspection is highly recommended and comes with a cost that buyers generally pay out of pocket.
- Recording fees: These fees cover the cost of officially recording the sale with the local government.
- Prepaid expenses: Buyers may need to prepay certain expenses such as homeowner's insurance, mortgage interest and property taxes at closing.
It's essential for buyers in Alaska to carefully review and understand all potential closing costs associated with their home purchase. Working closely with a real estate agent and lender can help clarify these expenses and ensure a smooth closing process.
Who pays closing costs in Alaska, buyer or seller?
In Alaska, the allocation of closing costs between the buyer and seller is typically negotiable and can vary based on local customs, market conditions and the terms of the purchase agreement.
Sellers in Alaska commonly bear expenses such as real estate agent commissions, title transfer fees, home warranty costs and any outstanding liens or judgments on the property.
| Buyer | Seller | |
|---|---|---|
| Origination fee | ||
| Appraisal fee | ||
| Inspection fee | ||
| Credit report fee | ||
| Real estate commissions | ||
| Transfer taxes |
Due to a recent court settlement, traditional fixed-rate real estate commissions are changing. Starting in August 2024, real estate commissions may be more negotiable, potentially reducing costs for both buyers and sellers.
» COMPARE: Mortgage lenders
How much are closing costs in Alaska?
While closing costs in Alaska are an average of 1.03%, it is a good idea to know how these fees are broken down. You will receive an itemized list of closing costs during the closing process, which occurs shortly before the completion of the real estate transaction. Here’s what to expect for your state:
| Average cost in Alaska | |
|---|---|
| Loan application fee | Up to $500 |
| Loan origination fee | 0.5% to 1.5% |
| Real estate attorney | $150 to $300 per hour |
| Courier fee | $30 to $50 |
| Title search fee | $60 to $200 |
| Title insurance fee | $4.50 per thousand |
| Discount points | 1% of the mortgage value |
| Transfer tax | 0% |
| Home inspection fee | $300 to $500 |
| Homeowners insurance | $1,160 |
| Recording fee | $120 to $150 |
» LEARN: Mortgage closing costs vs. prepaids: what’s the difference?
How to save on closing costs in Alaska
When you are already spending thousands of dollars on a down payment and other upfront expenses, saving money on closing costs can significantly lighten the financial burden associated with buying a home. Here are a few ways to save on closing costs in Alaska:
- Negotiate with the seller: Especially in a buyer’s market, when buyers have more negotiating room, sellers may be willing to contribute towards the buyer's closing costs.
- Review the loan estimate carefully: Thoroughly review the Loan Estimate provided by your lender, which outlines all the costs associated with the loan. Look for any fees that seem excessive or unnecessary and inquire about them.
- Opt for a no-closing-cost mortgage: Some lenders offer "no-closing-cost" or "zero-closing-cost" mortgages, where the closing costs are rolled into the loan or the lender covers them in exchange for a slightly higher interest rate. This option can help reduce upfront expenses.
Don’t miss our full guide on which closing costs can be negotiated and learn how to negotiate them.
FAQ
How much are closing costs in Alaska?
Closing costs in Alaska are 1.03% of the home purchase price on average. Buyers pay an average of $3,581 in closing costs (including taxes).
Are closing costs in Alaska high?
No, closing costs in Alaska are lower than the national average of 1.81%.
What is the average seller’s closing cost in Alaska?
On average, sellers in Alaska pay 6.86% to 7.15%. This percentage can vary depending on if you are in a buyer’s or seller’s market.
When are closing costs paid in Alaska?
In Alaska, closing costs are typically paid on the day of the property closing, also known as the settlement day. During the closing process, the buyer is expected to provide the necessary funds to cover their portion of the closing costs, which may include fees for various services and expenses related to the real estate transaction.
Bottom line
Yes, closing costs in Alaska can feel expensive, but planning for them upfront can help you reduce the financial headache as you close on your new home. By understanding when these costs are due and being financially prepared, you can navigate the closing process with confidence and ease.
Article sources
ConsumerAffairs writers primarily rely on government data, industry experts and original research from other reputable publications to inform their work. Specific sources for this article include:
- CoreLogic, “Average Closing Costs for Purchase Mortgages Increased 13.4% in 2021, CoreLogic’s ClosingCorp Reports.” Accessed May 2, 2024.
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