Home buyers often focus on saving for a down payment, forgetting that they must budget for closing costs, too. And those fees can add up: The average closing costs in the U.S. are $4,243, according to a new study from Assurance IQ, an insurance provider. On average, home buyers nationwide should plan to budget 1.87% of the home’s value. But average closing costs can vary greatly from state to state, varying from 1.2% to 2.47% of a home’s value.

“Buying a home comes with its share of expenses, and closing costs are a significant part of that,” the Assurance IQ study notes. “While some of these costs might be negotiable, being aware of the average closing costs in your state can equip you for what lies ahead.”

Assurance IQ’s study, which broke down average closing costs per state, factored in common expenses like appraisal fees, inspection fees, attorney fees, mortgage taxes, homeowners insurance, property tax and title insurance. The study found that the following areas have the highest average closing costs in the U.S., all over $6,000. Since closing costs tend to be based on a percentage of the home’s value, the areas with higher housing costs tend to register the highest state averages in closing costs.

• Median home value: $325,000
• Closing costs as percentage of home value: 2.47%

• Median home value: $538,500
• Closing costs: 1.49%

• Median home value: $343,500
• Closing costs: 2.24%

• Median home value: $366,800
• Closing costs: 1.9%

• Median home value: $398,800
• Closing costs:1.56%

On the other hand, lower median home values equate to lower closing costs. Here are the areas with the lowest closing cost averages in the nation, all under $2,700.

• Median home value: $123,200
• Closing costs: 1.72%

• Median home value: $149,600
• Closing costs: 1.6%

• Median home value: $170,100
• Closing costs: 1.45%

• Median home value: $133,600
• Closing costs: 1.89%

• Median home value: $125,500
• Closing costs: 2.09%

Source: Assurance IQ

Source: States Where Closing Costs Are Highest, Lowest REALTOR® Magazine (November 3, 2023) Melissa Dittmann Tracey