What Are the Average Closing Costs in Utah?

Regardless of whether you are hoping to sell to a cash home buyer, you’re selling your house as is, or you’re simply interested in selling your home in any way possible as soon as you can, you may not end up receiving as much money as you were expecting. Home selling is exciting and chances are that you’re eager to see some returns on your investment. However, don’t be quick to make plans for what you’ll do with all that money. The real estate market is a bit more complex than that. 

Average Closing Costs in Utah

In Utah and other states in the USA, there are ascertain closing costs when selling a house. They could end up being a significant amount of money and not knowing how much your closing fees will be could put you in a difficult situation that you’re not well-prepared for. To help you enter the process of home selling informed and prepared, we’ll explore the closing costs in UT in more detail. In this article, you can expect to find answers to what are closing costs, what are the average closing costs in Utah, and more. 

What are Closing Costs?

Before looking into the average closing costs in Utah, it’s worth starting by explaining what are closing costs. In simple terms, closing costs are simply separate expenses from the property’s price that both buyers and sellers may need to pay in order to finalize a real estate transaction and complete a sales deal. 

There are a range of different closing costs in UT and being aware of them will make selling your home an easier process. In addition, it’s essential that you’re prepared to pay these closing fees. If you have not factored them in, you may find yourself in a financially unstable situation and you may need to postpone the deal, which could push the potential buyers away. 

A lot of people and different parties are involved in selling your home. There are professionals like inspectors, appraisers, recorders at the county clerk’s office, and others. They all invest time, knowledge, and effort into making your home selling possible and it’s only natural that they are financially rewarded. There are certain closing fees that the seller is responsible for while there are other closing costs that are normally paid by the buyer. However, how you divide the closing costs may depend entirely on the situation and the agreement that you have with the other party. 

Closing costs could include:

  • Appraisal & survey fees
  • Title insurance
  • Private mortgage insurance
  • Mortgage points
  • Loan origination fees
  • Homeowners insurance 
  • Property tax
  • Miscellaneous fees
  • Attorney fees
  • Closing or escrow fees

But what about Utah closing costs in specific? What should you prepare for?

What are the Closing Costs in Utah?

It’s time to answer the question that bothers most home buyers and sellers – what are the closing costs in Utah? Do all of the fees listed above fall under house closing costs in UT?

Overall, it’s advisable to be prepared to pay between 1% and 3% of your home’s sale price in closing costs. This is a separate amount of money from the agent commission that you’re also obliged to pay, which ranges between 5% and 6% of your home sales price. Sometimes, the money could be taken from your profits if you have sufficient equity. However, in other cases, you’ll need to pay these house closing costs separately, from your pocket. 

Buyers are often exempt from the commission but they do have to pay larger closing costs or anything between 2% and 5% of the sales price. So what are the closing costs in UT?

Utah closing costs include:

  1. A home inspection: A property inspection is essential to detect any potential problems with the house before selling it. Usually, buyers will ask for a property inspection if you cannot provide an official report as they’ll want to see proof that the property is in good condition. 
  2. Credit report: If buyers are planning on paying for the house with a mortgage or loan, lenders will have to conduct a credit report to see if they are eligible for a loan. 
  3. Title insurance: Both the buyer and seller normally have to buy their own policy for title insurance as they’re two parties, separately responsible for their own title insurance. This is a great way to ensure you’re protected if there are unexpected occurrences after the first title search. 
  4. Recording fee: The recording fee covers the expense of recording the deed transfer with the local government. Every state or country has its own recording fee.
  5. Title search: To prove that there are no outstanding liens or judgments on the property being sold, a title search is performed. The title search is also what verified that the seller is the rightful wonder of the house. 
  6. Survey: A survey guarantees that the property’s boundaries are adequately outlined in the legal contract and there are no uncertainties on the legal owner of the property. A survey is required by all lenders. 
  7. Home appraisal: In case the buyer is paying for the purchase with the help of a lender, a home appraisal is a must. It guarantees that the property is priced adequately and its market value is similar to the asking price. The lender requires a home appraisal as there are always risks that the buyer won’t be able to pay out the loan. In this case, the lender will have a valid asset that they can sell to make up for the lost money.
  8. Loan fees: Loan fees include application fees and origination fees. There could also be prepaid interest added or discount points that are required when finalizing the deal. 
  9. Mortgage payoff or prepayment penalty: If the seller has an outstanding balance on their mortgage, it must be paid when the selling. In most cases, the mortgage contract will have a clause that requires the payment to be due at the time of transfer of the property to another owner. There are also loans that will penalize you for paying the mortgage off in advance of the agreed time period. 
  10. Transfer taxes: Although transfer taxes are not yet obligatory in Utah, there is a tax bill that could turn them into a new closing cost for selling your property in the state. 
  11. Real estate attorney: Although real estate attorneys are not obligatory to complete a real estate transaction in Utah, a lot of sellers and buyers will prefer to work with one for legal purposes. A real estate attorney will be able to offer protection for your interest and guarantee a smooth transaction.
  12. Household costs: There are running costs that the owner must pay before the closing date. Such expenses include utility bills, HOA fees, property tax, and homeowner’s insurance. 
  13. HOA transfer fee: HOA or homeowners association fee is a monthly fee paid by homeowners who live in the HOA community for the purpose of maintaining properties, amenities, and common areas in the association. 
  14. Home warranty: If there are appliances that are damaged as a result of use or wear and tear, the home warranty will cover them. As opposed to the homeowner’s insurance that applies to damage from other disasters, a home warranty makes up for damage as a result of use. The seller is normally obliged to pay this expense as it offers protection against appliances breaking soon after the sale. 

The list above will give you an idea of the closing costs when selling a house in Utah. But what can you expect to pay in actual numbers?

Average Closing Costs in Utah

Now that you’re aware of the closing costs in Utah, it’s time to get more precise and look at the closing costs when selling a house with their numbers. 

Here are the average costs when selling a house in UT:

  • A home inspection: $300 – $500
  • Credit report: $20-$50
  • Title insurance:  $1000
  • Recording fee: It depends
  • Title search: $300-$600
  • Survey: $350 – $500
  • Home appraisal: $450-$650
  • Loan fees: 0.5%-1.5% of the sale price
  • Mortgage payoff or prepayment penalty: It depends
  • Transfer taxes: It depends
  • Real estate attorney: $150-$500
  • Household costs: It depends
  • HOA transfer fee: Up to 1%
  • Home warranty: $300-$420 

Some of the closing costs in UT will vary based on different factors. But in general, you can expect to pay the mentioned above fees when you sell your house. Now that you know what the average closing costs are, you may be asking yourself the question of who pays them.

Who Pays Closing Costs in Utah?

Another common question that people involved in a house sale have is who pays closing costs in UT. The answer would depend on the situation as every real estate transaction is different and is subject to negotiation. But to make closing costs easier to understand, we’ll divide the closing fees according to buyer and seller to represent the most common scenarios. 

Pays Closing Costs in Utah

For home sellers, the usual closing costs in UT include:

  • Title insurance policy
  • Household costs
  • Home warranty
  • Transfer taxes & recoding fees
  • Mortgage payoff & prepayment penalty
  • Attorney fees (if relevant)

On the other hand, homebuyers are normally responsible for the following closing fees:

  • Loan fees
  • Credit report
  • Title search
  • Appraisal fee
  • Inspection fee
  • Survey fee
  • Attorney fee (if relevant)
  • Title insurance policy

As you can see, most of the closing costs that the buyer is responsible for are related to the loan. 

Pros and Cons of Paying Closing Costs in Utah

There are different real state transaction scenarios that require a different reaction. If you’re asking yourself whether it’s a good idea to pay the closing costs, the answer may differ every time. Paying closing costs in UT may be obligatory and not subject to any decision-making. However, the real question is which closing costs should you take on and which should the other party be responsible for. 

There are a number of pros and cons of paying closing costs in UT and the only way to make the right decision is to look at the coin from both sides. Sometimes, it may be more beneficial for the house seller to pay the majority of the closing fees the reap the benefits of paying closing costs. One major benefit is that in this case, the buyer doesn’t have anything to worry about that could potentially prevent them from completing the purchase. It’s hard enough finding a potential buyer interested in your property, why risk lose them when they’re already there?

Offering to cover the closing fees for the real estate transaction will certainly attract more buyers to consider prioritizing your property over others. In addition, if you’re selling a house in an area with a lot of FHA buyers, chances are that there won’t be many buyers with the ability to pay for the closing costs. 

However, remember that the closing costs are an additional expense that you must be prepared for. Offering to pay the closing costs can dig a hole in your pocket if you’re unprepared or haven’t done your full calculations appropriately. 


If your searches for “potential buyers to buy my house in Layton” are finally coming to an end and you have someone interested in purchasing your property, it’s time to dig deeper into the closing costs of selling a property. There are different closing fees in every state and being aware of what you’re expected to pay before you sell your house can save you a lot of stress, legal issues, and uncertainties. 

We hope that you’ll find the information provided in this article useful and helpful for your next real estate transaction. We’ve shared some insights on what closing costs are, what to expect to pay as part of your closing fees in Utah, and some of the average closing costs that you’ll be responsible for. If you’re interested in finding out more about the topic, you can jump on to our case study that covers the matter in more detail.

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