Are you budgeting for a home purchase or sale in Overland Park and wondering what closing costs will look like? You are not alone. Knowing what you pay, when it is due, and what you can negotiate will help you plan with confidence and avoid surprises on closing day. In this guide, you will learn the common buyer and seller costs in Johnson County, what local custom looks like, and simple ways to reduce your out-of-pocket cash. Let’s dive in.
Closing costs, in plain English
Closing costs are the fees and prepaids needed to finalize your real estate transaction. They include lender charges, title and settlement services, appraisal and inspections, recording fees, and prorations for taxes and dues. If you are getting a mortgage, federal rules require your lender to deliver a Loan Estimate early in the process and a Closing Disclosure at least three business days before you sign. Review both carefully and ask questions if anything looks off.
In Kansas, a title company or settlement agent typically prepares the final closing statement. If you are financing, your Closing Disclosure will list every item. Cash deals see a similar settlement statement. These documents show the exact dollar amounts and who pays what.
As a quick benchmark, buyers often pay about 2 to 5 percent of the purchase price in closing costs, not including the down payment. Sellers often pay about 6 to 10 percent of the sale price, with commission as the largest line item. Your exact numbers depend on your loan type, price point, and negotiated terms.
Buyer closing costs in Overland Park
Lender fees and points
- Loan origination, processing, and underwriting often total 0.5 to 1.0 percent of the loan amount.
- Discount points are optional and cost 1 percent of the loan per point. Points reduce your interest rate. Compare the break-even.
- Credit report fees usually run 25 to 75 dollars.
Appraisal and inspections
- Appraisal typically costs 400 to 800 dollars depending on loan type and property size.
- General home inspection usually runs 300 to 600 dollars. Termite, radon, sewer, septic, or chimney checks can add to this.
- Surveys, if required, often cost 300 to 600 dollars or more.
Title insurance and settlement services
- A lender’s title insurance policy is required when you finance. The premium follows a filed rate schedule and is paid once at closing.
- An owner’s title insurance policy protects your ownership. In many Kansas transactions, sellers purchase the owner’s policy, but this is negotiable and should be confirmed in the contract.
- Title and escrow settlement fees commonly total 300 to 900 dollars, depending on the company. These fees are sometimes split between the parties.
Recording, HOA, and other items
- Recording fees in Johnson County are generally modest and vary by document type. Your title company will confirm the exact amount with the Register of Deeds.
- HOA transfer or estoppel certificates often cost 100 to 400 dollars. Expect prorations of dues to the closing date.
Prepaids and escrows
- Homeowner’s insurance: many lenders collect the first year’s premium at closing. Policies vary widely, often 500 to 2,000 dollars or more.
- Property taxes: you will pay a prorated share from closing forward, and your lender may collect escrow reserves. The exact amount depends on the Johnson County tax schedule and your closing date.
- Prepaid interest: covers interest from your closing date until your first mortgage payment.
- Some loans include an upfront mortgage insurance premium. Check your loan type.
How buyer prorations work
- Property taxes are prorated to the day of closing. The seller is credited for their portion and you pay from the closing date forward.
- Utilities, HOA dues, and any rents on investment property are prorated per the contract.
- Special assessments that are liens must be cleared or prorated based on your agreement.
Seller closing costs in Overland Park
Commission
- The real estate commission is often the largest seller expense and is commonly 5 to 6 percent of the sale price in many markets. Commission is negotiated between you and your listing agent.
Title and settlement
- In many Kansas deals, sellers pay for the owner’s title insurance policy. This follows a set rate schedule and is a one-time premium.
- Title and escrow settlement fees are typically a few hundred dollars and vary by company.
Payoffs, liens, and assessments
- Your existing mortgage payoff includes principal, per diem interest, and any recording or reconveyance fees.
- Any recorded liens or judgments must be cleared or handled per contract.
- Unpaid special assessments are settled or prorated at closing.
Prorations and credits
- You will receive a credit for property taxes and HOA dues you have paid for periods after the closing date.
- Seller credits to the buyer, including concessions for repairs or closing costs, appear on the settlement statement and reduce your net proceeds.
Johnson County specifics to keep in mind
- Property taxes and billing: Johnson County sets tax amounts and due dates. Taxes are prorated at closing based on local practice and your contract. Your title company verifies the exact amounts with the Treasurer.
- Recording: The Johnson County Register of Deeds sets recording fees and formatting rules for deeds, mortgages, and satisfactions.
- Transfer taxes: Kansas does not have a broad statewide real estate transfer tax like some states. Local recording fees still apply. Confirm details with your title company.
- Title premiums: Title insurance is regulated at the state level. Premiums follow filed rate schedules. Ask your title company for a quote based on your contract price.
What you can negotiate
Buyers
- Lender fees and points. Shop at least two to three lenders and compare Loan Estimates side by side, including APR, points, and cash to close.
- Title and settlement provider. In many cases, parties have input on the title company. Fees and service levels vary.
- Seller credits. You can request a credit toward closing costs, escrow reserves, or a rate buydown. Your lender may cap the allowed credit.
- Inspections and repairs. You can ask for repairs or a repair credit instead of work before closing.
Sellers
- Commission. Commission is always negotiable. Terms can vary by service level, marketing plan, and timing.
- Who pays for the owner’s title policy. Local custom often has the seller paying this, but it can be negotiated.
- Concessions. You can offer credits toward the buyer’s closing costs, repairs, or a rate buydown to keep price integrity while improving the buyer’s cash flow.
- Title and escrow company. You may be able to select the title provider that offers the best balance of fee and service.
Ways to lower your out-of-pocket costs
- Compare at least three lenders and weigh both rate and total fees. A slightly higher rate with lower fees can be smarter if you plan to sell or refinance sooner.
- Ask your agent to structure offers with targeted credits. Credits can cover prepaids and escrows that buyers often feel most acutely.
- Get a title quote early. Premiums follow rate schedules, so a precise quote based on your price is straightforward.
- Review optional services. If your lender does not require a survey or certain inspections, decide if they add value for your situation.
Quick example on a 350,000 dollar sale
Use these ranges as a planning guide. Your lender and title company will provide exact numbers.
- Buyer estimate, excluding down payment:
- Loan fees and points: about 0.5 to 1.0 percent of the loan amount
- Appraisal: roughly 450 to 650 dollars
- Title and settlement: about 600 to 1,200 dollars
- Prepaids and escrows: about 1,200 to 3,000 dollars
- Inspections and survey: about 400 to 1,000 dollars
- Typical total: roughly 2 to 5 percent of the price, or about 7,000 to 17,500 dollars
- Seller estimate:
- Commission example at 5.5 percent: about 19,250 dollars
- Owner’s title policy and closing fees: about 1,000 to 2,500 dollars
- Mortgage payoff: varies by loan balance
- Credits and prorations: variable
- Typical total: roughly 6 to 10 percent of the sale price when all costs are included
Your next steps
- Ask your lender for a current Loan Estimate so you can forecast cash to close.
- Request a seller net sheet or buyer estimate from your agent to see the full picture with taxes and prorations.
- Get a title insurance quote from a local title company using your exact purchase price.
- Contact the Johnson County Treasurer for current tax amounts and due dates, and confirm recording fee details with the Register of Deeds through your title company.
- If selling, order a mortgage payoff statement early to avoid delays.
When you are ready to run the numbers on your specific property or offer, connect with a local team that lives in the details. The right guidance can save you money at the table and time on your timeline.
Ready for clear numbers and a clean close in Overland Park? Reach out to McQueeny Goodwin for a no-pressure plan that fits your goals.
FAQs
How much should an Overland Park buyer budget for closing costs?
- Buyers typically see closing costs around 2 to 5 percent of the purchase price, plus the down payment. Your Closing Disclosure three business days before closing will show the exact amount.
Who usually pays for the owner’s title insurance policy in Johnson County?
- Many local transactions have the seller pay the owner’s policy, but it is negotiable. Confirm what your contract states and align with your title company’s local practice.
Are real estate commissions fixed in Overland Park?
- No. Commissions are negotiated between the seller and the listing agent. Industry norms often fall around 5 to 6 percent, but terms can vary.
How are Johnson County property taxes handled at closing?
- Taxes are prorated through the closing date. The seller is credited for their portion, and the buyer pays from the closing date forward. Exact amounts depend on county billing and the closing date.
Can a seller pay part of a buyer’s closing costs in Overland Park?
- Yes. Seller concessions are common and appear as a credit on the settlement statement, subject to lender limits on the size of concessions.
