Closing Costs in Alaska for Buyers and Sellers (Complete Guide)

When buying or selling a home in Alaska, understanding the various costs involved, particularly closing costs, is crucial. Closing costs are fees and expenses associated with finalizing a real estate transaction, and they are a significant expense for both buyers and sellers. In Alaska, buyers can expect to pay approximately 0.86%–1.15% of the home’s agreement value in closing costs. On the other hand, sellers are typically responsible for paying around 6.86%–7.15% of the home’s purchase price, which includes the real estate agency commission. Being aware of these costs is essential for planning and budgeting purposes during the home buying or selling process.

Key Takeaways

  • Closing costs in Alaska typically range from 0.86% to 1.15% of the home’s agreement value for buyers and 6.86% to 7.15% for sellers.
  • Both buyers and sellers have specific closing costs they are responsible for paying.
  • Factors such as location, home price, and mortgage type can influence closing costs.
  • There are ways to reduce closing costs and prepare for a smooth closing process.

What Are Closing Costs?

Closing costs are the various fees and charges that buyers and sellers must pay to complete a real estate transaction. These costs are separate from the property’s purchase price and are typically paid at the closing of the deal. Closing costs can include a wide range of expenses, such as appraisal fees, title insurance, mortgage origination fees, and property taxes.

Also read: Arizona Home Buying Closing Costs: What to Expect

Different Types of Closing Costs

For Home Buyers

Home buyers in Alaska can expect to pay several closing costs, including:

  • Appraisal fees
  • Home inspection fees
  • Mortgage origination fees
  • Title insurance
  • Property taxes
  • Homeowners insurance
  • Escrow fees

For Home Sellers

Sellers in Alaska also have closing costs to consider, such as:

  • Real estate agent commissions
  • Title insurance
  • Transfer taxes
  • Prorated property taxes
  • Attorney fees
  • Escrow fees

Who Pays Closing Costs in Alaska

In Alaska, closing costs are typically split between the buyer and seller, but the specific allocation can vary depending on the terms of the contract and local customs. Generally, buyers are responsible for costs associated with their mortgage and due diligence, while sellers pay for items like real estate agent commissions and transfer taxes.

Also read: How Much Are Closing Costs in Arkansas

Who Pays Closing Costs on FSBO in Alaska

In a For Sale By Owner (FSBO) transaction, the seller is not represented by a real estate agent and therefore does not pay agent commissions. However, the buyer may still request that the seller cover some of their closing costs as part of the negotiation process. The allocation of closing costs in an FSBO sale can be determined by the buyer and seller’s agreement.

How Much are Closing Costs in Alaska

In Alaska, closing costs for buyers range from 0.86% to 1.15% of the home’s agreement value, amounting to approximately $2,897 to $3,874 for a median-priced Alaskan home ($336,888), excluding the down payment, which is typically 20%. 

Sellers, on the other hand, can expect to pay around 6.86% to 7.15% of the home’s purchase price, which includes realtor commissions of about 6%. For the median-priced home, sellers will pay between $23,110 and $24,087 in closing costs. Understanding these costs is crucial for both buyers and sellers to plan and budget accordingly when engaging in a real estate transaction.

Here’s the completed table with the calculated buyer closing costs for each home price:

Home PriceBuyer Closing Costs (Low End)Buyer Closing Costs (High End)

How Much Are Closing Costs for Buyers in Alaska

When buying a home in Alaska, closing costs are an essential consideration. On average, buyers can expect to pay between 0.86% and 1.15% of the home’s agreement value in closing costs. For a median-priced Alaskan home, which is currently $336,888, this translates to approximately $2,897 to $3,874 in closing costs. It’s important to note that this estimate does not include the down payment, which is typically around 20% of the home’s purchase price. 

These closing costs for buyers typically include expenses such as:

  • Appraisal fees
  • Home inspection fees
  • Mortgage origination fees
  • Title insurance
  • Property taxes
  • Homeowners insurance
  • Escrow fees

How Much Are Closing Costs for Sellers in Alaska

Sellers in Alaska should be prepared to pay a significant amount in closing costs when selling their home. On average, sellers can expect to pay between 6.86% and 7.15% of the home’s purchase price in closing costs. For a median-priced home in Alaska, which is currently $336,888, this equates to approximately $23,110 to $24,087 in closing costs. A substantial portion of these costs is attributed to realtor commissions, which typically account for around 6% of the home’s sale price.

Seller closing costs in Alaska typically include:

  • Real estate agent commissions (usually 5-6% of the sale price)
  • Title insurance
  • Transfer taxes
  • Prorated property taxes
  • Attorney fees
  • Escrow fees

Factors Influencing Closing Costs in Alaska

Several factors can impact the total closing costs for buyers and sellers in Alaska:

  1. Property Location: Closing costs can vary by city and county, as local governments may have different transfer taxes or fees.
  2. Loan Type: The type of mortgage a buyer chooses can affect closing costs, as some loans have higher origination fees or require additional insurance.
  3. Negotiations: Buyers and sellers can negotiate the allocation of closing costs, which can impact the final expenses for each party.
  4. Service Providers: The choice of title company, escrow agent, or attorney can influence closing costs, as their fees may differ.

Tips for Reducing Closing Costs

  • Shop around for lenders and compare fees
  • Negotiate with the seller to cover some closing costs
  • Choose a lender with lower origination fees
  • Opt for a no-closing-cost mortgage (higher interest rate)
  • Schedule closing at the end of the month to reduce prepaid interest
  • Ask for discounts on title insurance and other services
  • Consider a loyalty program if using the same lender for multiple transactions
  • Review the closing disclosure for errors or unnecessary fees
  • Be prepared to walk away if closing costs are too high
  • Work with experienced professionals to guide you through the process

How to Avoid Paying Closing Costs When Buying a House

  • Ask the seller to cover closing costs as part of the sale negotiation
  • Opt for a no-closing-cost mortgage (higher interest rate)
  • Apply for closing cost assistance programs for first-time buyers
  • Use gift funds from family members to cover closing costs
  • Negotiate with the lender to waive or reduce certain fees
  • Choose a lender with a loyalty program that offers closing cost discounts
  • Roll closing costs into the mortgage (higher loan amount)
  • Delay closing until you have saved enough to cover closing costs
  • Look for special promotions from lenders that offer reduced closing costs
  • Consider a rent-to-own agreement to spread out closing costs over time

Also read: What to Expect for Nevada Home Buying Closing Costs

How to Calculate Closing Costs

To calculate your estimated closing costs, follow these simple steps:

  1. Determine the purchase price or sale price of the home.
  2. Identify your role as either the buyer or seller.
  3. Multiply the price by the average closing cost percentage for your role:
    • Buyers: 0.86% to 1.15%
    • Sellers: 6.86% to 7.15%
  4. Add any fixed costs, such as appraisal fees or transfer taxes, to the calculated amount.

For example, if you’re a buyer purchasing a $400,000 home:

  • Low End: $400,000 × 0.86% = $3,440
  • High End: $400,000 × 1.15% = $4,600
  • Estimated Closing Costs: $3,440 to $4,600 + any fixed costs

Remember that this calculation provides an estimate, and actual closing costs may vary based on factors such as property location, loan type, and negotiations between parties.

Steps to Prepare for Closing

To ensure a smooth closing process, follow these steps:

  1. Review your closing disclosure: Carefully review this document, which outlines your final closing costs, before closing.
  2. Gather necessary documentation: Ensure you have all required paperwork, such as proof of insurance and identification.
  3. Transfer funds: Make sure you have the funds available to cover your closing costs and down payment.
  4. Attend closing: At the closing, you’ll sign the final paperwork and receive the keys to your new home.

How to Find a Trusted Real Estate Agent

  • Ask for referrals from friends, family, or colleagues who have recently bought or sold a home
  • Research agents online and read reviews from past clients
  • Look for agents with experience in your desired area and price range
  • Check the agent’s licensure and professional designations
  • Interview multiple agents to assess their communication skills and expertise
  • Ask about their marketing strategies and track record of success
  • Inquire about their availability and responsiveness to clients
  • Choose an agent who listens to your needs and preferences
  • Trust your instincts and select an agent you feel comfortable working with
  • Verify references and ask for examples of recently closed transactions


Closing costs are an essential aspect of buying or selling a home in Alaska. By understanding the various expenses involved and the factors that influence them, buyers and sellers can better prepare for the financial impact of a real estate transaction. Working with trusted professionals, such as real estate agents and lenders, can help streamline the process and potentially reduce closing costs. With careful planning and negotiation, both parties can successfully navigate the closing process and achieve their homeownership goals.

Frequently Asked Questions (FAQ)

Is it expensive to buy a house in Alaska?

Buying a house in Alaska can be more expensive compared to other states due to factors such as a limited housing supply, higher construction costs, and the state’s remote location. However, prices vary depending on the specific area, with urban centers like Anchorage having higher costs than rural regions.

What state has the lowest closing costs?

According to recent studies, Missouri, Indiana, and Iowa are among the states with the lowest closing costs. These states have lower fees for services such as title insurance, appraisals, and mortgage origination, which contribute to overall lower closing expenses for buyers and sellers.

Who Pays the Most Closing Costs?

In Alaska, sellers typically pay the majority of closing costs, which can range from 6.86% to 7.15% of the home’s purchase price. This is primarily due to the inclusion of realtor commissions, which account for around 6% of the sale price. Buyers, on the other hand, pay less in closing costs, approximately 0.86% to 1.15% of the home’s agreement value.

Is buying property in Alaska expensive?

The cost of buying property in Alaska varies depending on location and property type. In general, urban areas like Anchorage have higher property prices compared to rural regions. Factors such as limited land availability, construction challenges due to permafrost, and the state’s remote location can contribute to higher property costs.

Do you get $1000 to stay in Alaska?

While there is no program that directly pays individuals $1000 to stay in Alaska, the state does have the Alaska Permanent Fund Dividend (PFD). This program distributes a portion of the state’s oil revenue to eligible Alaskan residents annually. The PFD amount varies yearly and has ranged from around $1000 to over $2000 in recent years.


Razib is a skilled writer with 5 years of experience specializing in technology, finance, automotive and real estate. A BBA graduate from 2014, Razib's passion for these industries shines through in his informative and engaging content. His ability to break down complex topics and stay current on the latest trends makes him a valuable resource for readers seeking to understand these dynamic fields.

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