While many homeowners hope to profit from selling their house, the process isn’t free. There are many costs associated with finalizing a home sale.
In Idaho, these closing costs typically add up to around 10% of your home’s final sale price. However, every home sale is unique, and you can’t get a solid estimate without factoring in your specific circumstances.
We’ll help you estimate your closing costs in Idaho with expert insight from top Coeur d’Alene real estate agent Cody Funk, who sells 95% more homes than the average local agent.
Idaho seller closing cost overview
Here’s an overview of common Idaho closing costs. We’ll break down what each of these fees is below.
|Closing cost||Average cost||Seller responsibility|
|Mortgage payoff||$185,322||The seller must pay off their mortgage when selling their home.|
|Property taxes||0.96% of the home’s value||The seller is responsible for property taxes up to the day of sale (prorated).|
|Commissions||Around 6% of the sale price, according to Funk||It’s customary for the seller to pay commission to the listing agent and buyer’s agent.|
|Title insurance||0.36%-0.67%||It’s customary for the seller to pay for the owner’s policy but not the lender’s policy.|
|Title company fee||$20, according to Funk||Yes|
|Loan reconveyance and recording fees||$155, according to Funk||The seller is responsible for covering these fees.|
|Buyer concessions||3% of the sale price, according to Funk||Customary|
|Outstanding liens||Costs may vary||Yes|
|HOA fees||$25-$50, according to Funk||Sellers pay prorated HOA fees up to the day of the sale.|
|Attorney fees||$350-$500||If sellers choose to work with a real estate attorney, they’ll pay fees.|
Idaho sellers are on the hook for these closing costs
These are the primary closing costs that Idaho sellers pay:
You’ll need to pay off your mortgage to transfer the title to the buyer. In Idaho, the average mortgage debt was $185,322 in 2020. In most cases, sellers use the funds from their home sale to cover this cost.
You’ll work with your settlement agent to request a payoff statement from your lender for an exact payoff amount. This amount won’t be the same as the balance on your last mortgage statement. The payoff statement includes per diem loan interest due up until the date of settlement and payoff, along with any outstanding fees such as a prepayment penalty or late payments.
Since mortgage payoff varies widely, we have not included this cost when calculating the total average closing cost percentage in Idaho.
Reconveyance tracking and recording fee
When you pay off a mortgage, the lender must file paperwork with the state that proves they have released their claim on the property.
Top agent Funk tells us that it’s standard for title companies to charge between $120 and $150 to facilitate loan reconveyance in Idaho.
Additionally, the state charges a recording fee of about $25 to document the reconveyance, though this fee varies by county.
When you sell your home, you’re responsible for paying property taxes for the amount of time that you owned the property.
“In Idaho, property taxes are always paid in arrears,” explains Funk. “So your June payment is paying off your December bill from the previous year.”
This means that, at closing, you’ll receive a debit on your upcoming property tax bill for an amount prorated to the day of sale. While property tax rates vary by county, the average rate in Idaho is around 0.96% of the estimated value of your home per year.
Unlike most other states, Idaho does not charge any real estate transfer taxes. So wrapping up property taxes is all you need to worry about.
Real estate agent commission
Real estate agent commission is typically the most expensive closing cost for sellers. Funk advises that it’s customary for Idaho sellers to pay around 6% of their home’s sale price in agent commission, covering both the listing and buyer’s agents’ fees.
While you might think 6% is a steep bill, note that the top 5% of real estate agents sell homes for 10% higher prices than their peers. For this reason, an excellent agent ultimately pays for their services and then some.
To find a real estate agent who has a proven history of success, get matched with HomeLight. Answer a few questions about your property and selling goals, and we’ll match you with three top agents in your area.
Both buyer and lender will have title insurance policies. The owner’s title insurance protects the buyer against challenges of ownership. The lender’s title insurance protects the lender against ownership disputes or liens that weren’t discovered during the title search.
In Idaho, the seller customarily pays the buyer’s owner policy, while the buyer usually pays their lender’s policy and any extended coverage they may want.
The cost of title insurance varies depending on the size of your home and the title company you use. As an example, First American Title charges anywhere from 0.36%-0.67% for a policy on an Idaho home.
Title company fees
Transferring the title of a home is an involved process. You need to conduct a title search to ensure that there are no pre-existing liens or other legal issues with your title, record everything with the state, have parties sign paperwork reflecting the transaction, and more. In Idaho, these services are usually included in the fee you pay for the buyer’s title insurance policy.
Funk tells us that title companies charge around $20 for a flat rate “courier fee” that covers postage and bringing documents back and forth from lenders, the buyer, and the state.
Buyer closing cost assistance
Buyers have their own closing costs to deal with and, unlike sellers, don’t always have profits from a home sale to cover them. Funk shares that “it’s typical for buyers to ask for around 3% in closing cost assistance, helping them pay origination fees from their lender, appraisal fees, credit checks, and more.”
Sellers may also run into these closing costs
Some closing costs are unavoidable, but other fees only come up in specific circumstances. These are some common fees that sellers may encounter depending on their situation:
A lien is a legal claim on the property made to ensure the payment of a debt. For instance, a homeowner may incur liens from debts like an unpaid construction project or outstanding taxes on their property.
The title search process reveals any liens on your property, which you’ll need to pay off to sell.
Unlike many other states, Idaho does not require an attorney to handle real estate transactions. However, Funk tells us that he always invites his sellers to hire an attorney, pointing out that an attorney can help you navigate complicated third-party transactions.
If you decide to work with an attorney, expect to pay $350 to $550 for their services.
Homeowners association dues
There are around 2,500 homeowners associations in Idaho, and about 38% of Idaho homeowners belong to one. The national average cost of HOA fees is between $200 and $300 monthly; however, Funk shares that Idaho residents typically only pay between $25 and $50 per quarter.
If your home is part of an HOA, you’re responsible for paying a prorated amount for the period you owned the house. In some cases, the buyer may request that you cover the HOA fees for the full year as a concession to sweeten the deal.
Estimate your net proceeds after closing costs
During the final steps of your home sale, you’ll receive a settlement statement— an itemized list of all the costs you’re responsible for paying to finalize the transaction.
If you want a quick estimate of your closing costs before you’ve signed any paperwork, use HomeLight’s Net Proceeds Calculator. Our tool can provide you with an accurate estimate of the net proceeds of your sale, along with the estimated closing costs.
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