Understanding the closing costs when selling your Kansas home can help you avoid surprises and make informed decisions. Closing costs are the various fees and expenses that both sellers and buyers must pay to finalize the sale of a property.
These costs typically include real estate agent commissions, property taxes, and loan payoff amounts. In this short guide, we’ll explain how closing costs work in Kansas and what you can expect to pay when selling your home.
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Disclaimer: This article provides estimates of a seller’s closing costs that are meant for educational and research purposes only; our calculations are not a guarantee.
What are closing costs?
Closing costs are fees you pay after a real estate transaction. These costs typically encompass a broad spectrum of expenses, such as property taxes and insurance, which are common for both sellers and buyers. However, certain costs, like transfer taxes, will fluctuate based on your home’s location at the time of sale.
Mortgage/Loan payoff amount
Before selling your home, you’ll need to address the loan payoff amount on your mortgage. This is the remaining balance due on your mortgage, which must be fully paid off before you can transfer ownership of your property. The payoff includes the outstanding principal balance and any interest that has accrued over the life of the loan.
In some cases, additional fees, such as late payments or prepayment penalties, may also be included in the loan payoff amount.
Property taxes
According to WalletHub, Kansas ranks 37th in the country in terms of property taxes, placing it above states like Michigan and Rhode Island.
Real estate in Kansas is taxed at a rate of 1.33%, with a median home value of $338,533. To get a better idea of what you might owe, consult a property tax calculator.
Reconveyance fee
After closing the sale of your home and paying off your mortgage, you’ll typically be responsible for covering a reconveyance fee. This fee is associated with the recording of a reconveyance deed, a document that releases you from the mortgage debt.
Your mortgage company generally records this deed, and the specific fee will vary depending on your location, whether at the city, state, or county level.
Realty transfer tax
You also might be responsible for what’s known as a realty transfer tax. These are fees assessed by local governments whenever a property changes ownership.
These taxes are sometimes called a “Deed Excise tax” or a “Documentary Stamp tax.” Who ultimately pays these taxes depends on the state, city, or county where the sale occurs.
In Kansas, there is no transfer tax, but you will still be responsible for other closing costs.
Real estate agent commission
Unless you’re selling your home for sale-by-owner, you’ll likely have used a local agent. Research indicates that an agent’s expertise can significantly impact your sale: In 2023, homes sold with an agent’s assistance had a median price of $405,000, compared to $310,000 for FSBO sellers.
Working with a real estate agent means paying a commission. This fee covers various services, such as accurately pricing your home, marketing it effectively, and negotiating with buyers to ensure you receive the best possible price and terms.
It should be noted, however, that on March 15, 2024, the National Association of Realtors (NAR) announced a landmark lawsuit settlement that will change the way real estate agent commissions are handled in the future. These changes will “decouple” seller and buyer agent compensation. Industry experts predict that this decoupling will likely lower agent fees and give buyers the ability to negotiate commission amounts directly. Learn more.
HomeLight’s transaction data reveals that the national average real estate agent commission is 5.8% of the property sales price. This commission typically includes fees for both the listing and buyer’s agents, with sellers customarily covering the cost.
Use HomeLight’s commission calculator by entering your city for commission data tailored to your specific area.
Attorney Fees
Some states require an attorney to be present when closing the sale of a property.
Real estate attorneys are not required to close in Kansas, but you may be advised by your real estate agent.
Homeowners Association/Condo Fees
One of the biggest sticking points for sellers is the fees levied by their homeowners’ association (HOA) or condominium association fees.
Like other fees we’ve discussed, these will vary, not just because of the different rules and regulations of your local HOA but also because HOA regulations vary greatly depending on the state. These fees (or dues) are usually prorated at the time of the sale.
The average monthly HOA fee in Kansas is $386.
Seller’s concessions
Sellers may owe additional costs at closing due to financing concessions agreed upon during negotiations. These concessions often cover closing costs, home warranties, or necessary repairs.
One common concession is repair credits, often used when a buyer includes a contingency in their offer, typically related to the results of a home inspection. If the seller decides not to handle repairs identified by the inspector, they can instead offer the buyer a cash credit to cover the repair costs at closing. However, these concessions are less frequent in a seller’s market, as contingencies might discourage potential buyers.
Miscellaneous closing costs/fees
These are some of the most typical closing costs you might encounter as a seller in Kansas. However, keep in mind that many of these costs can be negotiated. Your buyer may be open to covering some of them, or a real estate attorney or agent could assist you in securing a more favorable deal.
If you want to minimize the stress of working with an agent or managing closing costs, consider HomeLight’s Simple Sale program. We streamline the home-selling process into just three easy steps—enter your home’s details, consult with one of our Home Consultants, and you could close on your sale in as little as 10 days.
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