When you pay cash for a home in the Iowa City area there are obviously less closing costs than when you work with a lender. You won’t need to pay any costs attached to the processing of a home loan. At the same time, you also miss out on having them vet the entire process. Lenders are in effect a safety net for home buyers. They won’t lend money until they are 100% certain of the value of the house. When you buy a house for cash it becomes your responsibility to do your own due diligence and to do it effectively you will need the help of an experienced Realtor. This is true when you live in town and is even more true when you are an out of state buyer. You’ll need someone you can rely on who knows the Iowa City real estate market and is able to co-ordinate the (many) moving parts in the closing process. Right now though you’re not looking for a Realtor, you’re looking for information on closing costs in Iowa City for a cash sale and that information is below:
Typical Closing Costs for Cash Buyers in the Iowa City Area
Appraisal – $300 – $400 (Not required, but recommended as you are “financing” your own home and want to make sure it’s worth the price agreed on by you and the sellers).
Title Search – $150
Title Opinion – $175
Title Insurance – Title Guaranty – $110 for a Single Family Home, $125 for a Condominium (Also not required, but recommended for peace of mind against title defects).
Closing Fee – $100
Recording Fees for recording the transfer of property – $7 for the first page, $5 for additional pages. Johnson County Recorder
Short disclaimer: Closing costs on this list are estimated based on experience of Attorneys that have represented past clients. There are likely to be variances from Attorney to Attorney. You should talk to your Realtor or Attorney to verify the actual costs if you intend to buy a home in the Iowa City area for cash.
Closing cost are typically what you expect to see on the closing statement at closing. There are other costs associated to buying a home in Iowa City that are paid for prior to closing. These would be the home inspections and home insurance. From experience I know that home insurance costs are all over the map. This is one you definitely want to shop around!
Costs for Home Inspections in the Iowa City Area
Home Inspection – $300 – $400 (A typical home inspection runs 3 – 4 hours, if the house is larger or more work intensive it will likely take longer and cost more).
Radon Inspection – $100 – $125
Pest Inspection – $50 – $70
Once again comes the disclaimer that these numbers are based on experience of trusted Inspectors that have done home inspections for past clients. There may be variances in pricing. The numbers in this post are to give you something to go on when it comes to closing costs and other costs associated with buying a home in the Iowa City area.
I know the costs associated with buying a home are very different from state to state, I’ve helped many out of state buyers who have told me that closing costs here in Iowa City are pretty reasonable by comparison. This post gives you a starting point if you’re considering buying a house in the Iowa City area… And when you’re ready to work with a Realtor who knows the ins and outs of the Iowa City real estate market and knows the importance of keeping track of those moving parts in a cash sale, give me a call at 319-400-0268.
What I haven’t covered in this post are the additional steps needed when you buy a condo in the Iowa City area. The following link is to a post on the condo buying process in Iowa City.