You'll pay around 1.2% of your home's final sale price in seller closing costs when you sell a home in Kentucky. For a $197,413 home — the median home value in Kentucky — you'd pay around $2,383.
In most cases, your closing costs will come out of your sales proceeds — but they're only a portion of what you'll pay at closing. Expect to pay realtor fees, your mortgage payoff, and other home selling expenses as well. If you don't get enough money for your home to pay off these expenses, you may have to pay for some of them out-of-pocket.
Since realtor fees will likely be one of your biggest expenses, finding a lower rate is one of the best ways to save when you sell. Thankfully, you can save money by finding an agent with Clever! We pre-negotiate low listing fees of just $3,000 or 1% with top full-service Kentucky realtors so you can keep more in your pocket after selling your home.
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 you pay when you finalize the sale of your home in Kentucky. These include the costs of verifying and transferring ownership to the buyer and many are unavoidable.
Kentucky seller closing costs
🔍 Title service and closing fees
🗞 Owner's title insurance
Typically covered by buyer
🏡 Transfer tax
✍ Recording fees
💰 Property taxes
*Based on a sale price of $197,413, the typical home value in Kentucky (Zillow June 30, 2022)
In Kentucky, you'll pay about 1.2% of your home's final sale price in closing costs, not including realtor fees.
Keep in mind that this is 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.
Who pays closing costs in Kentucky?
Buyers and sellers share the burden of paying for closing costs at the end of a home sale, but they won’t pay for the same things. In Kentucky, sellers typically pay for title and closing fees, transfer taxes, and recording fees at closing.
Title and closing fees: 0.68%
When you sell your home, you have to transfer legal ownership of the property to the buyer. Before that, your settlement agent will do a title search to make sure no one else has a legal claim to the property.
Title fees pay for the settlement agent who handles the search and transfer of your title, as well as other related closing services.
In Kentucky, the buyer and seller typically cover the cost of 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: 0.40%
An owner's title insurance policy protects a buyer in case a problem arises regarding previous ownership of a title. This includes anything from clerical errors in the paperwork to full disputes over ownership. This title insurance policy covers any fees for legal representation or to reimburse the value of a home if mistakes are made.
In Kentucky, owner's title insurance usually costs around 0.40% of your home's final sale price — or $787 for a $197,400 home. However, the specific rate for your property may vary. Title companies in Kentucky often use tiered pricing to determine how much you'll pay for a policy based on your home's value.
Typically, the buyer covers the cost of an owner's title insurance policy in Kentucky, but it's not uncommon for both parties to negotiate who pays this closing cost.
Kentucky transfer tax: 0.10%
Kentucky charges you about 0.10% of your home's sale price to transfer the title to the new owner. If you sell for Kentucky's median home value — $197,000 — you'd pay $197. However, your county or city may also charge their own transfer taxes. Check with your realtor and title company to see what taxes you'll owe in your area.
Kentucky recording fees: $50
Your state or local government charges a fee for legally recording a property's deed and mortgage information. Expect to pay around $50 in Kentucky — though you may be able to negotiate for the buyer to cover this cost.
Property taxes: Varies
In Kentucky, your county may collect property taxes for the current year at the end of the year. If that's the case in your area, you'll pay property taxes at closing for the portion of the year that you owned the property. That way, the buyer doesn't have to pay taxes for the entire year when they only owned it for a few months.
In areas where you pay property taxes at the beginning of the year, the buyer would typically reimburse you at closing for the remaining months.
Other Kentucky closing costs for sellers
Every Kentucky home sale is unique, and a lot of them come with unforeseen costs and fees. For example, you may need to pay out-of-pocket for a property appraisal on your historic Louisville home, or you may want to retain a real estate attorney to navigate the sale of your Frankfurt investment rental. Whatever your circumstances, you should be prepared to handle some surprise fees during your transaction. Here are a few of the most common:
- Homeowners Association (HOA) fees
- Settlement or attorney fees
- Property appraisal fees
- Mortgage payoff and/or prepayment penalties
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.
Kentucky closing costs calculator
In Kentucky, you should expect to pay around 1.2% of your home's final sale price in closing costs — although your exact charges will vary based on your home's value, local fees, and your arrangements with the buyer.
Use this Kentucky closing costs calculator to see how much money will come out of your proceeds at closing — and how much you'll take home after the sale.
How to save on Kentucky closing costs
While closing costs aren't typically the biggest expense for sellers in Kentucky, you do have some options to help you pay less, if possible.
Negotiate for the buyer to pay
If you're selling in the middle of a hot seller's market with low housing inventory, you may be able to 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.
Shop around for better prices
You can also 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 from title company to title company. When you're already navigating inspections, repair requests, and appraisals, calling seven different companies to find a $50 discount on owner's title insurance probably isn't worth the hassle!
Save on realtor fees
The best way to save money on a big chunk of your selling costs is to find a realtor who charges lower listing fees. In Kentucky, real estate commission costs an average of $10,739 — that's typically 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 $2,370 on a median-priced home in Kentucky!
Other home selling costs in Kentucky
Closing costs aren't the only expenses you'll have to pay when you sell your home. As noted, most sellers cover the realtor commission for both their agent and the buyer's agent.
On top of realtor fees and closing costs, you may also face these expenses:
- Repairs and prepping your home to sell
- Buyer incentives, like offering a home warranty
- Relocation and moving expenses
Kentucky has enjoyed an extremely strong real estate market over the past several years, especially in metro areas like Louisville, and list prices have skyrocketed recently, suggesting that sellers anticipate a huge spike in demand. That means now is a great time to sell!
Whether you’re selling your Louisville single family home because the kids have gone off to college, or you’re cashing in your Lexington investment rental, you’ll want to make the most money possible from your home sale.
You can save a few bucks if you negotiate with your buyer to cover some of your closing costs, but the most efficient way to preserve your hard-won profits is to lower your own realtor fees. Fortunately, Clever's pre-negotiated lower listing fees — either 1% or $3,000 — with some of Kentucky's best real estate agents. Contact Clever today to see how much you can save!
Frequently asked questions
In Kentucky, closing costs usually amount to around 1.2% of a home’s sale price, not including realtor fees. With a median home value of $197,413, sellers can expect to pay around $2,383 at closing.
Buyers and sellers share the burden of paying for closing costs at the end of a home sale, but they won’t pay for the same things. In Kentucky, sellers typically pay for title and closing fees, transfer taxes, and recording fees.