Arkansas Home Buying Closing Costs in 2024

Closing costs are the fees charged to both buyers and sellers to finalize the sale of a home in Arkansas. These costs cover various services and taxes needed to legally transfer ownership of the property. For buyers in Arkansas, closing costs typically range from 2%-5% of the purchase price. Sellers can expect to pay around 6%-10% of the sales price. However, the exact percentage varies significantly based on the home value, location, lender and other factors.

Key Takeaways

  • Closing costs range from 2% to 5% for buyers and 6% to 10% for sellers in Arkansas.
  • Costs cover appraisals, inspections, taxes, attorney fees and more.
  • Exact fees depend on loan type, home value, contingencies and laws.
  • Both parties should understand and prepare for these costs.

What are Closing Costs in Arkansas

Closing costs refer to the various fees charged by lenders, attorneys, appraisers, inspectors and others to finalize the sale of a home. Both buyers and sellers will have costs they need to pay. These include origination charges, application fees, attorney fees, title searches, inspections, recording fees and more. Local laws and sale contingencies can also impact total closing costs.

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

Different Types of Closing Costs

There are several different types of closing costs paid by both buyers and sellers in Arkansas:

Buyer Costs

  • Loan origination – Charges to initiate the mortgage
  • Points – Prepaid interest charges
  • Appraisal – Third-party valuation of the property
  • Credit report – Assessment of buyer’s finances
  • Lender inspection – Property review for lending guidelines
  • Home inspection – In-depth analysis for buyer information
  • Title search – Research to ensure clear property title
  • Survey – Precise property lines and measurement
  • Attorney fees – For contract review and representation

Seller Costs

  • Agent commissions – Percentage of the total sale price
  • Transfer taxes – Local and state taxes on sold property
  • Document preparation – Drafting and processing paperwork
  • Recording fees – To register the sale publicly
  • HOA fees – If part of a homeowner’s association
  • Attorney fees – For contract review and representation

Factors Influencing Closing Costs in Arkansas

While closing cost averages give you a ballpark figure, many variables affect the actual total including:

  • Home Price – Costs are largely based on a percentage of the total value. More expensive homes mean higher closing fees.
  • Down Payment – The higher your down payment, the lower the loan amount and associated lender fees.
  • Loan Type – FHA and VA loans often have higher upfront mortgage insurance premiums. Jumbo loans above $647,200 also see higher costs.
  • Location – Certain counties/cities impose additional taxes that raise closing fees.
  • Sale Contingencies – Special contingencies like selling an existing home can add fees during closing.
  • HOA Fees – Homeowners associations also charge transfer and/or capital contribution fees.

Also read: Closing Costs in Louisiana: A Buyers and Sellers Guide

Who Pays Closing Costs in Arkansas

By default, the buyer pays most closing costs in Arkansas real estate deals. Typical buyer fees include lender origination fees, appraisal costs, title searches and insurance, escrow services and recording charges. However, the purchase agreement can stipulate the buyer and seller split certain closing fees.

Sellers usually pay real estate agent commissions, legal fees and any taxes owed on the property. Some buyers may offer to take on the seller’s closing fees to make their offer more appealing. But sellers often pay around 6-10% of the total home price.

Who Pays Closing Costs on FSBO in Arkansas

For Sale By Owner (FSBO) deals are home sales directly between the buyer and seller without using real estate agents. This allows sellers to avoid paying agent commissions that are around 5-6% of the sales price.

However, FSBO sellers still pay virtually all the same closing costs paid when listing with an agent. This includes legal fees, title insurance costs, transfer taxes, document fees, recording charges, and more. FSBO sellers must also still disclose all property defects and provide the buyer with a property disclosure form.

The only major closing costs FSBO sellers avoid are realtor commissions. Buyers pay most of the other customary closing fees to finalize the house purchase. So Arkansas FSBO sellers still face significant closing costs, typically in the range of 4-8% of the home’s sale price. Carefully estimating these FSBO seller closing costs is important when pricing and listing a home for sale by owner.

How Much are Closing Costs in Arkansas

For buyers in Arkansas, closing costs are generally 2%-5% of the purchase price of the home. So for example, on a $200,000 home, a buyer can expect to pay between $4,000-$10,000 in closing costs.

For sellers in Arkansas, closing costs tend to be a bit higher at 6%-10% of the sale price. So on that same $200,000 sale amount, a seller would likely pay between $12,000-$20,000 in closing fees.

Here is an estimate of buyer and seller closing costs for different home price points in Arkansas:

Home PriceBuyer Closing CostsSeller Closing Costs
$100,000$2,000 – $5,000$6,000 – $10,000
$200,000$4,000 – $10,000$12,000 – $20,000
$300,000$6,000 – $15,000$18,000 – $30,000
$400,000$8,000 – $20,000$24,000 – $40,000
$500,000$10,000 – $25,000$30,000 – $50,000
$750,000$15,000 – $37,500$45,000 – $75,000
$1,000,000$20,000 – $50,000$60,000 – $100,000

How Much are Closing Costs for Buyers in Arkansas

Closing expenditures for Arkansas home buyers often fall between 2%-5% of the total purchase price. With lower-priced homes, closing costs tend to hit the higher end of this range.

For example, on a $200,000 house, the buyer would pay around $4,000-$10,000 – so likely 5%. But with a more expensive $500,000 home, closing costs would be 2%-4% or $10,000-$20,000.

This occurs because fixed charges for services like title insurance and inspections represent a lower percentage on higher-valued transactions.

Also read: Closing Costs in Oregon: A Ultimate Guide for Home Buyers and Sellers

How Much are Closing Costs for Sellers in Arkansas

In Arkansas, sellers can expect to pay 6%-10% of the home’s sale price in closing fees. So on a $300,000 sale, the total would range from $18,000-$30,000.

With lower-end homes, expenses hit the higher end around 10%. For a $150,000 house, closing costs could reach $15,000 for the seller.

Meanwhile, luxury and higher-end listings see fees around 6%-8%. On a $750,000 home, the seller would pay $45,000-$60,000 – the lower end of the range.

What is the average closing time on a house in Arkansas

In Arkansas, it takes around 30-45 days on average to close on a house after the purchase contract is signed. However, closing timelines can range from as little as 14 days for all-cash deals to 60+ days for transactions needing extensions or delays.

Closing times also depend heavily on factors like:

  • Financing Type – Cash and conventional loans close fastest
  • Home Age – New construction may need longer inspections
  • Title Issues – Clearing disputes adds delays
  • Appraisal Timing – Waiting for value approval extends closing

So while 30-45 days is common, closing length varies from 2 weeks to 2 months depending on the deal specifics. Streamlined sales with fewer contingencies tend to close faster.

How are Closing Costs Calculated

Closing costs are calculated by tallying up all the expected fees from lenders, attorneys, title companies, inspectors, appraisers, local governments and others. Common calculations include:

  • Origination & Underwriting Fees – Based on the mortgage loan amount
  • Title Searches & Insurance – Percentage of home price
  • Taxes – Property taxes and transfer taxes
  • Commissions – Negotiated agent commission percentage
  • Inspections & Appraisals – Set rates around $500 each
  • Legal Fees – Hourly rates around $250-$500
  • Recording & Courier – Flat county clerk fees
  • Prepaids – Home insurance premiums, interest, escrows

By adding all above expected costs, real estate agents come up with estimated buyer and seller closing costs. Unexpected issues that arise can also raise closing fees higher.

Steps to Prepare for Closing

Buyers and sellers in Arkansas can take proactive steps to prepare for closing, such as:

  • Save up funds – For down payment, closing costs and reserves
  • Gather documents – Tax returns, pay stubs, home inspection reports
  • Get pre-approved – For financing amount to streamline process
  • Compare estimates – From title companies, attorneys, inspectors
  • Sell assets – If needed to cover down payment or fees
  • Change utilities – Schedule turnover around closing date
  • Pack & clean – Declutter home for buyers to move in

Proper planning and readiness for the closing process helps everything go smoothly. Having funds lined up and all required paperwork in order prevents last minute delays.

Ways to Reduce Closing Costs in Arkansas

Buyers and sellers have several options to reduce closing fees in Arkansas:

  • Negotiate with agents – Lower commissions to 4% vs 6%
  • Apply credits – Seller credits from inspection fixes
  • Shop lenders – Compare loan estimates line-by-line
  • Pay points – Buy down interest rate to lower APR
  • Time the closing – Near month-end to reduce prepaid interest
  • Ask about discounts – For first-time home buyers or others
  • Refuse escrows – Pay property taxes and insurance yourself

While most closing costs are fixed, buyers do have some flexibility to adjust fees based on negotiating, shopping around and structuring the mortgage strategically. This keeps more cash in your pocket on closing day.

How to Avoid Paying Closing Costs When Buying a House

Some ways first-time home buyers in Arkansas can buy a house without paying any closing costs include:

  • Negotiate a seller credit – Ask them to pay all or part of closing fees
  • Use gift funds – Receive money from family to cover costs
  • Get a no-closing cost mortgage – Fees rolled into loan balance
  • Take advantage of grants – If eligible based on location or income

Using all strategies above, savvy Arkansas home buyers can acquire a new house without hardly contributing any money out of pocket for the thousands of dollars in typical closing fees. This makes home ownership much more affordable.

How to Find a Trusted Real Estate Agent

To find a trusted real estate agent in Arkansas, buyers and sellers should:

  • Ask friends – For referrals from recent sales
  • Read online reviews – Carefully evaluate multiple sites
  • Interview 3-5 agents – Discuss process, expertise, communication style
  • Check licensure status – Via Arkansas Real Estate Commission
  • Ask about previous sales – Volume, average time on market, list to sale ratios
  • Make sure personalities mesh – Important for high-touch experience
  • Discuss commission rates – Negotiate competitively around 5-6%

Taking the time to carefully vet several agents before selecting one to represent your home sale or purchase in Arkansas results in the best experience. Recent client reviews and activity metrics like average days to sell filter qualified agents.


In closing, buyers in Arkansas face closing costs between 2-5% of the total mortgage loan and home price to finalize a purchase. Required fees pay for title transfers, lender origination, taxes and more. Sellers also pay closing costs typically ranging 6-10% of the total sales price.

However, specific closing fees vary based on the home value, buyer down payment, property type, lender programs and other factors. While required, savvy buyers have some options to reduce overall closing costs through negotiations, shopping lenders and utilizing available credits. But once set, understanding and properly budgeting for all closing fees helps make the Arkansas home buying or selling process go smoothly.

Frequently Asked Questions (FAQs)

What are the most expensive closing costs?

The largest closing costs are usually the origination fees and points from lenders, as well as real estate commissions for agents. These can cost thousands of dollars each. Title insurance, taxes, and inspections also run over $1,000 in many cases.

Do closing costs get refunded if a deal falls through?

Unfortunately closing costs are not refundable even if the real estate transaction fails. Certain rate lock deposits, property appraisal fees and credit reports may be partially refunded, but most other closing fees are lost. Home inspections and attorney fees also usually cannot be recovered.

Can closing costs be deducted from taxes?

Yes, certain closing costs like origination points, appraisal fees and tax charges can qualify as tax deductions for homeowners in Arkansas. These would count as mortgage interest deductions or property tax deductions, providing tax savings.

Do I need an attorney for closing in Arkansas?

While not legally required, it’s highly advisable for both home buyers and sellers to hire a real estate attorney to represent them at closing in Arkansas. An attorney helps review all paperwork thoroughly and ensures proper processing of the transaction. First-time home buyers in particular benefit from guidance on the closing process.

How can I estimate my closing fees?

The best way to estimate precise closing costs in Arkansas is to closely compare detailed loan estimates and title fee worksheets from multiple providers. Getting quotes from several lenders and title companies allows buyers and sellers to accurately anticipate their closing fees. There are also general closing costs calculators online to provide rough estimates.

How much are title fees in Arkansas?

Title fees in Arkansas can vary depending on the property value and the title company you choose.  They typically range from around $500 to $1,000.

Who normally pays for title insurance in Arkansas?

In Arkansas, the buyer typically pays for the lender’s title insurance policy, while the seller pays for the owner’s title insurance policy.

How much does the average realtor make in Arkansas?

The average income for realtors in Arkansas can vary depending on experience, location, and the number of transactions they complete. It’s difficult to pinpoint a single number, but national data suggests real estate agents make anywhere from $40,000 to well over $100,000 per year.

Jean Folger

Jean Folger brings over 15 years of expertise as a financial writer, specializing in areas such as real estate, investment, active trading, retirement planning, and expatriate living. She is also the co-founder of PowerZone Trading, a firm established in 2004 that offers programming, consulting, and strategy development services to active traders and investors.

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