How much are Kentucky closing costs? | Who pays them? | Kentucky seller closing costs calculator | How to save when you sell | FAQs
On average, sellers in Kentucky can expect to pay 3.07% of their home's final sale price in closing costs. For a $205,598 home — the median home value in Kentucky — you'd pay around $6,319.
Realtor commission fees are also paid at closing and are usually the biggest expense for sellers in Kentucky. However, this is also the one fee that you can easily save on. By using an agent-matching service like Clever Real Estate, you can reduce your listing agent commission by thousands.
Clever pre-negotiates low listing fees with experienced agents from top brokerages so you can keep more money in your pocket after closing.
Keep reading to find out which closing costs sellers typically cover in Kentucky and how much you can expect to pay for each of them.
Need estimates for your sale? You'll also find our Kentucky seller closing costs calculator!
How much are seller closing costs in Kentucky?
Seller closing costs are fees and taxes you pay when you finalize the sale of your home in Kentucky. These include the costs of verifying and transferring ownership to the buyer, so most are unavoidable.
Kentucky seller closing costs
Typically paid by buyer
Typically paid by buyer
*Based on a sale price of $205,598, the typical home value in Kentucky (Zillow August 31, 2022)
Keep in mind that closing costs in Kentucky do not include realtor fees. These are an extra 5.44% on average — and they're nearly always paid by the seller.
» LEARN: How real estate commission works in Kentucky
Buyers and sellers each pay unique closing costs to finalize a home sale. In Kentucky, sellers typically pay for the title and closing service fees, transfer taxes, and recording fees at closing. Optional costs for sellers include buyer incentives, pro-rated property taxes, or for an attorney.
Buyers, on the other hand, pay for things like mortgage, appraisal, and inspection fees.
These closing costs are only an estimate. While closing costs will always have to be paid, your real estate agent can often negotiate who pays them — you or the buyer.
If you want to get the most out of negotiations, you'll need an experienced agent who has your best interests in mind. Clever can help by matching you with a top agent in your area who can score you a great deal.
» MORE: See how Clever can help match you with the perfect agent
Title service fees: 0.43%
Title fees cover the costs of the title search and title transfer.
When you sell your home, you have to transfer legal ownership of the property to the buyer. To ensure there are no claims or liens on your home, your settlement agent will complete a title search.
In Kentucky, buyers and sellers usually pay for their own title company or closing agent, but don't expect this for every sale. Ask your realtor if you're not sure.
Owner's title insurance: N/A
Owner's title insurance protects the buyer if there's a problem with the property title. It will pay for any legal fees if mistakes are found — or potentially even reimburse the value of the home.
In Kentucky, it's more common for the buyer to pay for owner's title insurance.
However, it's always possible to negotiate who pays what.
» MORE: What is title insurance, and why do you need it?
Lender's title insurance: N/A
Just like owner's title insurance protects the buyer, lender's title insurance protects the bank or financial institution that issued the buyer a mortgage.
In Kentucky, the buyer usually pays for lender's title insurance, so you're off the hook. Still, it's always possible the buyer will try to get you to pay for this in negotiations, so make sure you have a quality real estate agent looking out for your best interests.
Transfer tax: 0.10%
Kentucky charges you about 0.1% of your home's sale price to transfer the title to the new owner. If you sell for Kentucky's median home value — $205,598 — you'd pay $206.
Some cities and counties also charge their own transfer tax. Check with your realtor and title company to see what taxes you'll owe in your area.
» FIND: Learn more about transfer taxes in Kentucky
Kentucky recording fees: 0.02%
Your city or county will charge a fee to legally record your property's deed and mortgage information. The exact amount will vary based on your location, but you can expect to pay around $46 in Kentucky — although you might be able to negotiate for the buyer to cover this cost.
Buyer incentives: 2%
Buyer incentives can help you secure a sale in tough markets by making it easier or more appealing for a buyer to purchase your property. You can pay some of the buyer's closing costs, offer repair credits, or include valuable items in the sale of the home.
The average amount sellers spend on buyer incentives in Kentucky comes to about $4,112.
Don't forget about property taxes!
When you sell a home in Kentucky, you'll still have to pay property taxes for the months you owned the property. Using this prorated system, you won't be on the hook for the full 12 months of taxes. However, this does make it more difficult to estimate how much you'll owe at closing.
The average property tax rate in Kentucky is #N/A, but this can vary quite a bit depending on your county.
For instance, Campbell County has the highest property tax rate in the state at 1.17%. Meanwhile, Carter County residents have the lowest property tax rate at just 0.51%.
Be sure to check with your real estate agent so you can find out exactly you'll need to pay in property taxes.
Other Kentucky closing costs for sellers
Every Kentucky home sale is unique, and many come with a few surprise fees. Here are a few of the most common additional costs you may face selling your Kentucky home:
- Homeowners Association (HOA) fees
- Mortgage payoff and/or prepayment penalties
- Property appraisal fees (averages $315)
- Attorney fees (optional in Kentucky, averages $150)
» LEARN: The total cost of selling a house
Your realtor will have a better idea of the closing costs you can expect to pay, depending on the Kentucky neighborhood you're selling in and other factors.
An experienced agent can do a lot more than market your property and negotiate with buyers. Top realtors — like the ones Clever partners with — will have the local knowledge necessary to maximize your profits and understand what buyers in the area are looking for in a new home.
Kentucky closing costs calculator
Your total closing costs will ultimately vary based on your home's value, local fees, and negotiations with your buyer.
Use this Kentucky closing costs calculator to better understand how much money you'll actually take home after closing.
How to save on Kentucky closing costs
While closing costs aren't usually the biggest expense for sellers in Kentucky, there are a few ways to reduce these fees.
Negotiate for the buyer to pay
If you're selling in the middle of a hot seller's market with low housing inventory, you could ask the buyer to cover some of your closing costs.
Competition among buyers is fierce in these market conditions, so they're typically more willing to make concessions so you'll accept their offer on your Kentucky home.
When you're selling in a buyer's market, however, they'll likely ask you to make more concessions since you won't be getting as many offers.
» MORE: How to negotiate with buyers before accepting an offer
Shop around for better prices
It might be possible to save some money by shopping around for cheaper rates on services like title insurance and closing fees.
However, these costs are relatively low and tend to be fairly consistent among different companies. When you're already navigating inspections, repair requests, and appraisals, calling several different companies to find a $50 discount probably isn't worth the hassle!
Save on realtor fees
The best way to reduce your selling costs is to find a realtor who charges lower listing fees. In Kentucky, real estate commission costs an average of $11,185 — that's usually more expensive than the rest of your closing costs combined!
Thankfully, there's a way to save big by selling with Clever. With listing fees of just $3,000 or 1%, you'll save an average of $2,592 on a median-priced home in Kentucky.
» SAVE: Learn more about how much a Clever agent can save you!
Frequently asked questions
In Kentucky, expect to pay about 3.07% of your home's sale price in closing costs — not including realtor fees. At the median home value of $205,598, this equates to around $6,319 at closing. Learn more about what makes up seller closing costs in Kentucky.
Buyers and sellers each pay for different closing costs to finalize a sale. In Kentucky, sellers typically pay for title fees, documentary stamp taxes, owner's title insurance expenses, and recording fees at closing. Learn more about who pays closing costs in Kentucky.
Kentucky closing costs are usually taken right out of your sale profits at closing. The only time you'd have to pay out of pocket is in rare instances where your takeaway won't completely cover closing costs. If you're worried about these, check out our tips on how to save money on closing costs.