Average closing costs in Arkansas

The rolling hills, vibrant cities, and rich history of Arkansas beckon many to settle down in this diverse state. But before you plant your roots in the heart of the Natural State, understanding closing costs is crucial for a smooth and informed journey. Fear not, future Arkansan! This guide will equip you with the knowledge to navigate the closing cost maze and confidently claim your perfect Arkansas home.

I. Unveiling the Hidden Ozarks:

Closing costs, those additional expenses beyond the purchase price that finalize the property transfer, can be a bit of a mystery. In Arkansas, these costs can range from 2% to 5% of the purchase price, with an average of $1,785 for buyers and $6,406 for sellers according to ClosingCorp and NewHomeSource.

Several factors influence your final closing cost, including:

  • Buyer vs. Seller: Sellers typically have higher closing costs due to real estate commissions and additional fees.
  • Property type: Condos and townhouses generally have lower closing costs than single-family homes.
  • Property location: Costs can vary by city, county, and even specific neighborhoods.
  • Loan type: FHA loans generally have higher closing costs than conventional loans.
  • Down payment amount: A larger down payment reduces the loan amount and associated closing costs.
  • Negotiation: Certain fees may be negotiable with the seller, lender, or service providers.

II. Exploring the Hidden Creeks:

Let’s break down the common closing costs you might encounter in Arkansas:

For Sellers:

  • State recording tax: 0.11% of the purchase price, paid to the state for recording the property deed.
  • County transfer tax: Varies depending on the county, typically ranging from 0.2% to 1.5% of the purchase price.
  • Real estate commissions: Typically 6% of the purchase price, divided between the listing and selling agents.
  • Title insurance: Protects the buyer’s interest, typically costing 0.5-1% of the purchase price.
  • Homeowner’s association (HOA) closing fees: Applicable for properties in communities with shared amenities.
  • Outstanding liens or judgments: Must be satisfied before the property can be sold.

For Buyers:

  • Origination fees: 0.5-1% of the loan amount, covering the lender’s processing costs.
  • Appraisal fees: $400-$600, for a professional assessment of the property’s value.
  • Underwriting fees: $300-$500, to evaluate your creditworthiness and loan risk.
  • Credit report fees: $25-$50, for obtaining your credit history.
  • Title insurance: Protects the lender’s interest, typically costing 0.5-1% of the purchase price.
  • HOA fees: Applicable for condos or communities with shared amenities.
  • Prepaid costs: Property taxes, homeowner’s insurance, and interest payments prorated based on the closing date.

Other potential fees:

  • Survey fees: $250-$500, to verify property boundaries and avoid encroachments.
  • Attorney fees: Optional, but recommended for complex transactions, typically ranging from $500 to $1,500.
  • Courier fees: For document delivery and processing, fees can vary depending on the service provider.

III. Mastering the Ozark Trails:

Understanding these factors is key to minimizing your closing costs:

  • Sellers: Negotiate your real estate commission and consider offering buyer credits to cover closing costs.
  • Buyers: Shop around for lenders and compare closing cost estimates.
  • Both: Consider a larger down payment, negotiate certain fees, and explore first-time homebuyer programs or down payment assistance options offered by the Arkansas Housing Finance Authority.

IV. Cost-Saving Strategies for Savvy Arkansans:

Be proactive and utilize these strategies to trim your closing cost timber:

  • Get pre-approved: Lock in interest rates and avoid potential cost adjustments.
  • Negotiate like a pro: Don’t be afraid to negotiate certain fees, especially in a buyer’s market.
  • Ask for lender credits: Based on your creditworthiness or loan type, you might qualify for credits.
  • Compare and contrast insurance quotes: Don’t settle for the first option, shop around for the best deal on homeowner’s insurance.


Q: What are closing costs in Arkansas?
A: Closing costs in Arkansas refer to the fees and expenses associated with the purchase of a property, which are paid at the closing of a real estate transaction.

Q: How much are the average closing costs in Arkansas?
A: The average closing costs in Arkansas typically range from 2% to 5% of the purchase price. However, it is important to note that every transaction is unique, and the actual costs can vary.

Q: What expenses are included in the closing costs in Arkansas?
A: Closing costs in Arkansas may include but are not limited to the following: loan origination fees, appraisal fees, title search and insurance fees, attorney fees, survey fees, inspection fees, prepaid property taxes, homeowner’s insurance, and more.

Q: Can closing costs be negotiated in Arkansas?
A: Yes, closing costs can be negotiated in Arkansas. It is recommended to discuss the possibility of negotiating closing costs with the seller or your real estate agent to determine if any adjustments or concessions can be made.

Q: Are there any programs or assistance available to help with closing costs in Arkansas?
A: Yes, there are various programs and assistance options available in Arkansas to help homebuyers with closing costs. These may include down payment assistance programs, grants, or loans that can help reduce or cover the closing costs. It is advisable to consult with a local mortgage lender or housing agency to explore the available options.

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