Thinking about buying in Jeffersonville but eyeing Louisville too? Crossing the Ohio River can change what you pay at the closing table, even if the homes look similar. You want a clear number you can plan around, not a surprise on closing day. In this guide, you’ll learn what closing costs include, how Kentucky and Indiana differ, and how to estimate your total with real examples. Let’s dive in.
What closing costs include
Closing costs are the fees, taxes, and prorations collected to transfer ownership and fund a mortgage. They cover lender charges, title and settlement services, recording fees, transfer taxes if any apply, property tax and HOA prorations, and payoff of any liens.
Who pays what depends on a mix of state and county rules, lender requirements, and local custom. Many items are negotiable in the purchase contract, such as seller concessions toward buyer fees. Others are set by law or lender policy.
Across both Kentucky and Indiana, sellers commonly pay real estate commissions, which are usually the largest single line item. Buyers typically pay lender and loan-related costs unless you negotiate credits or concessions.
Buyer vs seller costs at a glance
Typical seller costs
- Real estate commission. Often the largest seller expense. The common range is about 5% to 6% of the sale price, set by agreement with your listing agent.
- Mortgage and lien payoff. You pay off your loan balance plus any accrued interest and fees as of the closing date.
- Owner’s title insurance policy. Who pays this varies by local custom. It is a one-time premium based on the sale price and is negotiable.
- Prorated property taxes and assessments. You credit or receive a credit based on the closing date and how your county bills taxes.
- Recording and transfer charges. Counties charge fees to record the deed. Some states or counties also collect a transfer tax or stamp. These are smaller than commissions but differ by jurisdiction.
- HOA items if applicable. Prorated dues and any association transfer or estoppel fees.
- Settlement or closing fee. Paid by the seller or buyer depending on local custom and your contract.
Typical buyer costs
- Lender fees. Underwriting, processing, origination, and any discount points if you buy down the rate. A common range is 0.5% to 1.5% of the loan amount, higher if you pay points.
- Appraisal. Often a few hundred dollars, generally in the $350 to $800 range depending on property type.
- Credit report. Typically a small fee.
- Title work and lender’s title policy. Lenders require a lender’s policy. The buyer often pays this and may also pay the owner’s policy if the contract allocates it that way.
- Settlement or escrow fee. Who pays depends on local custom and negotiation.
- Recording fees for the mortgage. County charges to record your loan documents.
- Prepaid items and escrow deposits. Initial property tax and homeowners insurance escrow, plus mortgage interest from funding to your first payment. Lenders often collect 1 to 3 months of reserves.
- Inspections. Home, termite, sewer scope as needed. Usually paid out of pocket before closing.
- Survey if required. Varies by property and lender.
- HOA transfer and dues if applicable. Paid according to the association and your agreement.
Quick budgeting ranges
- Buyers. Plan for about 2% to 5% of the price for closing costs, not including your down payment. You’ll be toward the low end if you get credits and shop fees, and toward the high end if you pay points or have higher escrow requirements.
- Sellers. Plan for about 6% to 10% of the price when commissions are included. Your net also depends on your mortgage payoff and any concessions.
KY vs IN differences to watch
Commissions
Commission levels are negotiated between you and your listing agent. There are no statutory differences between the Kentucky and Indiana sides of the Louisville metro. Because commission is typically the largest seller cost, it drives most of the seller’s closing cost difference more than smaller county fees.
Title and closing practices
Local customs vary. In some Kentucky markets, attorneys often handle or supervise closings. In Indiana, title companies and escrow firms are commonly used. Both states use title companies and attorneys, and either approach can be present on either side of the river. This can change who pays the settlement fee and certain title search costs.
Who pays the owner’s title policy also varies by market custom. Confirm the usual practice with the title company for Jefferson County, Kentucky and for Clark or Floyd Counties in Indiana. You can also allocate this by contract.
Recording and transfer charges
All counties charge recording fees per document. Amounts and page charges vary by county. Some states or counties also collect a deed transfer tax or stamp, while others do not. If a transfer tax applies on one side of the river and not the other, it will be a noticeable difference in your closing costs. Confirm current requirements with the county recorder or your title company.
Property tax calendars and prorations
Tax billing schedules and due dates differ between Kentucky and Indiana and by county. At closing, tax prorations are based on the number of days each party owns the property and whether taxes are paid in advance or in arrears. Because of the different calendars, the credit or debit you see for property taxes can vary for the same closing date across the river. Ask the county treasurer or PVA and your title company how proration will be calculated for your address and timing.
Attorneys vs title companies
You may see attorney fees in Kentucky transactions where you might see only title company fees in Indiana. Both approaches are valid and negotiable. Your lender and title company will outline what is required for your loan.
Municipal and utility items
Local governments sometimes require payoff of special assessments or collect transfer or utility fees when service changes hands. Sewer liens, sidewalk assessments, or municipal transfer fees may apply differently in Louisville or Jefferson County versus Clark or Floyd Counties. Your title company will check for these during the title search.
How to estimate your total
Use this simple step-by-step process to get within a reliable range, then confirm with your lender and title company.
Start with price and contract terms. Note who pays what in your purchase agreement, including any seller concessions.
Sellers. Subtract your mortgage payoff using a payoff letter from your lender. Add commission at your agreed rate, plus an estimate for the owner’s title policy, recording and transfer fees, and prorated taxes or HOA items.
Buyers. Request a formal Loan Estimate from your lender. Add inspection costs, appraisal, title fees, the lender’s title policy, recording fees, and your escrow deposits for taxes and insurance.
Confirm county charges. Ask the Jefferson County, Kentucky recorder or the Clark or Floyd County, Indiana recorder for current recording fees and whether a transfer tax applies. Your title company can also confirm these for your file.
Get a seller net sheet and finalize your Loan Estimate. A net sheet from the title company or listing agent will itemize seller fees. Your Loan Estimate shows the buyer’s itemized costs.
Sample budgets for common prices
These examples use broad ranges for planning and highlight what most buyers and sellers should budget. Replace them with your Loan Estimate or seller net sheet for exact numbers.
Example at 300,000 price
Seller estimate
- Commission at 6 percent: 18,000
- Title, closing, recording, and other seller fees: 1,000 to 3,000
- Prorated taxes and HOA payoffs: varies, often 500 to 2,500
- Estimated seller total, excluding mortgage payoff: about 20,000 to 24,000, roughly 6.7 percent to 8.0 percent of price
Buyer estimate, excluding down payment
- Lender fees and any points: 1,500 to 4,500
- Appraisal and inspections: 800 to 1,300
- Title, lender’s policy, and settlement: 1,000 to 2,500
- Prepaids and escrow reserves: 1,500 to 4,000
- Recording fees: 150 to 500
- Estimated buyer total: about 5,000 to 12,800, roughly 1.7 percent to 4.3 percent of price
Example at 500,000 price
Seller estimate
- Commission at 6 percent: 30,000
- Other seller fees and prorations: 2,000 to 5,000
- Estimated seller total, excluding mortgage payoff: about 32,000 to 35,000, roughly 6.4 percent to 7.0 percent of price
Buyer estimate, excluding down payment
- Typical range: about 2 percent to 4 percent of price, or 10,000 to 20,000 depending on points, lender credits, and escrow requirements
Ways to keep costs predictable
- Use concessions wisely. Seller concessions can cover some buyer closing costs. Lender rules limit the maximums by loan type and down payment, so check with your lender before you write the offer.
- Clarify title and settlement charges early. Ask who is paying the owner’s policy and settlement fee in your county, and write it into the contract.
- Request updated estimates at key milestones. After inspections and loan approval, ask for an updated Loan Estimate or a revised seller net sheet so you can plan cash to close with confidence.
Cross-river checklist
- Confirm who pays the owner’s title policy in your county and write it into your offer.
- Ask your lender for a Loan Estimate that includes taxes, insurance, and escrow deposits.
- Request a seller net sheet from your listing agent or title company.
- Verify current recording fees and any transfer tax with the county recorder where the home is located.
- Check the county’s property tax calendar and how proration will be handled for your closing date.
- Ask the title company to check for municipal assessments, sewer liens, and HOA transfer fees.
Ready for a tailored estimate
If you are comparing Jeffersonville or New Albany to Louisville, you deserve clear numbers before you make a move. Get a personalized breakdown of buyer or seller costs for your address, price point, and target closing date. Reach out to Weston Faulkner for a local, step-by-step plan.
FAQs
Who usually pays real estate commission in KY and IN
- Typically the seller pays listing and buyer-broker commissions as negotiated in the listing agreement. Commissions are negotiable on both sides of the river.
Do Kentucky or Indiana charge transfer taxes on home sales
- Transfer tax rules vary by state and county. Confirm current requirements with the county recorder or your title company for Jefferson County, Kentucky, and Clark or Floyd Counties, Indiana.
Who pays for the owner’s and lender’s title insurance policies
- Lenders require the lender’s policy and buyers often pay it. Who pays the owner’s policy depends on local custom and your contract. Confirm with your title company.
Can seller concessions cover buyer closing costs
- Yes. Seller concessions can pay some buyer closing costs, but lender rules limit the maximum based on loan type and down payment. Check limits with your lender.
Why do property tax prorations differ between KY and IN closings
- Counties follow different tax calendars and billing cycles. Prorations are based on the closing date and whether taxes are paid in advance or arrears, which can vary by jurisdiction.
Will I need an attorney to close in Kentucky or Indiana
- Some Kentucky transactions involve attorneys more often, while Indiana commonly uses title and escrow companies. Both states use both approaches. Your lender and title company will guide the required process.
