What are the biggest closing costs usually paid by sellers in Iowa?

The biggest closing costs typically paid by sellers in Iowa when selling land by owner (FSBO) include:

1. Transfer Tax: The seller is responsible for paying the transfer tax, which is a fee imposed by the state of Iowa on the sale of real estate. The transfer tax rate is a tiered system, ranging from 0.45% for properties sold for $99,999 or less. This means that for the sale of land priced at $200,000, the seller would pay a transfer tax of $900.
2. Title Insurance: This type of insurance protects both the buyer and the seller from financial losses due to title defects, which are errors or problems with the legal ownership of the property. These defects can arise from various sources, such as forged documents, undisclosed heirs, or liens that were not properly recorded. Average costs in Iowa range from $500 to $600.
3. Recording Fees: These are paid to the county clerk’s office for recording documents related to the sale of the property. Average costs in Iowa range from $25 to $50.
4. Attorney Fees (if using an attorney): While not mandatory, consulting with a real estate attorney is highly recommended for FSBO transactions, especially for complex properties or those with a history of title issues. Average closing costs for an attorney in Iowa are typically between $500 and $1,000.