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Disclaimer: These are estimates only. Actual closing costs vary by lender, title company, state/county, and closing date. Your Loan Estimate (TRID) is the source of truth.
Arkansas Closing Costs Breakdown
Closing costs in Arkansas typically range from 2% to 5% of the home's purchase price. For a median-priced home of $230,000, buyers can expect to pay between $4,600 and $11,500 at closing. Arkansas has one of the more affordable housing markets in the nation, which keeps total closing cost dollar amounts relatively low compared to states with higher median home prices.
Transfer Taxes & Fees
Arkansas charges a real estate transfer tax of $3.30 per $1,000 of the property's sale price, which equals approximately 0.33% of the purchase price. On a $230,000 home, that amounts to roughly $759. By law and strong convention, the seller is responsible for paying this transfer tax. The tax applies to all real property transfers valued over $100.
Attorney Requirements
Arkansas is a title company state and does not legally require an attorney to conduct real estate closings. Title companies and escrow officers manage the majority of residential transactions in the state. However, attorneys are sometimes involved to handle the title examination, and some buyers choose to hire one for legal review. Attorney flat fees typically run $750 to $1,250 for straightforward closings.
Local Quirks & Need-to-Know
One unique convention in Arkansas is that sellers typically pay for the lender's title insurance policy in addition to the owner's title insurance policy, which is the reverse of what is common in most other states. Buyers should confirm this local custom with their agent and title company. Property taxes in Arkansas are paid in arrears, so buyers receive a prorated credit from the seller at closing covering the portion of the year the seller owned the home.