How much are home buyer closing costs in Denver? If you use the current median sales price for homes, along with the typical 3% to 5% that buyers pay in closing costs, you’d end up with a range of $11,550 to $19,250.
But there are a lot of variables that could affect your bottom line. Please contact us if you’d like a more precise estimate tailored to your situation.
Estimating Home Buyer Closing Costs in Denver: 2018
Home prices across the Denver, Colorado metro area have risen steadily over the last few years. As a result of this trend, home buyers could encounter higher closing costs in 2018 than in years past.
“Closing costs” is actually a collective term for the various fees and charges that can accumulate when a person buys a home with a mortgage loan. Some of these costs come from the mortgage lender, while others come from third parties such as title companies, credit reporting agencies, and even local government.
Home buyers in Denver can expect to pay somewhere between 3% and 5% of the home’s value in closing costs. Some might end up paying more or less than that, because there are many variables. But 3% to 5% is a pretty good range to work with, when determining the average closing costs for home buyers in Denver.
According to the real estate information company Zillow, the median home value for Denver, Colorado rose by 6.7% over the last 12 months (as reported in January 2018). And because closing costs are partly influenced by the price of the home and the size of the mortgage loan, this means home buyers in Denver are paying more in closing costs (on average) than those who purchased a house last year.
According to the Denver Metro Association of REALTORS®, the median price for homes and condos sold in December 2017 was $385,000. The average sales price during that same month was $443,753.
Median home prices are generally viewed as a better indicator of current market prices, because they are less skewed by “outliers,” like a really expensive home that sold recently. So we will use the median figure to gain some insight into Denver home buyer closing costs in 2018.
That gives us a ballpark range of what home buyers might pay to close on a median-priced home in Denver, as of January 2018. A more expensive property would likely result in higher overall costs.
Getting a More Accurate Estimate
These are just averages and medians. There are a lot of variables that can affect how much a home buyer / borrower will pay in closing costs. For instance, some borrowers choose to pay “discount points” to secure a lower mortgage rate. While others might skip paying points in order to keep their closing costs low. That’s just one of several variables that can affect the total amount a person pays to close on a home in Denver.