Comparing median home prices here in California and around the country is a favorite pastime for many. Hey, we get it. An October 2018 housing report did all the heavy lifting, compiling both median home values and closing costs for 33 of the biggest metropolitan areas in the US. Let’s see how things stack up.
Quick notes – the report used information from Zillow and Thumbtack, and while it was published in October, it used data from July of the same year. It’s safe to assume that home values have ticked upward since then, as would those average closing costs. Still, it’s a good place to start comparing if you’re debating the pros and cons of buying in the Bay or in Baltimore.
|Metropolitan Area||Median Home Value (July 2018)||Closing Costs|
|Dallas-Fort Worth, TX||$231,100||$6,352|
|Kansas City, MO||$182,600||$5,012|
|Las Vegas, NV||$266,200||$5,559|
|Los Angeles-Long Beach-Anaheim, CA||$643,300||$7,674|
|Miami-Fort Lauderdale, FL||$275,700||$7,398|
|Minneapolis-St Paul, MN||$261,300||$5,271|
|New York, NY||$429,700||$11,232|
|San Antonio, TX||$185,900||$6,352|
|San Diego, CA||$584,100||$7,674|
|San Francisco, CA||$954,100||$7,674|
|San Jose, CA||$1,292,600||$7,674|
|St. Louis, MO||$161,800||$5,705|
A real estate transaction is host to multiple fees and charges, and that’s true for both the buyer and the seller. In a typical transaction, it’s the buyer who usually pays more in closing costs, particularly when a mortgage loan is involved.
These fees can be handled in a few ways – the seller may agree to cover some of the buyer’s costs, or both parties can decide to pay their fees separately. It’s one of the many details negotiated upfront and then included in the purchase agreement. Big note – the local real estate market will play a big part in who ultimately pays what, as will whichever side of the negotiating table enjoying the most leverage.
As the chart makes clear, closing costs vary from one part of the country to another, and can be dependent on variables in home prices and taxes. There are other variables that will affect a buyer’s closing costs, which add thousands of dollars to the total amount to be paid.
A good rule of thumb is to estimate somewhere between 2.5 to 5% of the purchase price – and to ask a pro. Here in San Francisco, Meredith Martin has the experience and straightforward approach you need, whether you’re buying or selling. Call today.