Determining Closing Costs on Portland Real EstateHow to Determine Closing Costs

Closings costs figures vary from buyer to seller and may vary depending on the specific transaction but more often than not, many figures remain the same no matter what the transaction.  Many buyers can be offered a “No Closing Costs” loan but this is just not true as no matter how a mortgage lender may spin it, they are paying for the costs in some way.

Closing costs can be built into the price of the home if the appraisal can come in higher than the purchase price to cover the extra expenses.  Regardless of how creative your lender or the buyer’s Realtor can factor in the costs, they still must be paid when selling a property.

Related: Should you offer less than asking price with an all-cash offer?

in real estate, buyers and sellers split escrow fees.  Sellers pay the title search costs and the conveyance tax. Buyers pay title insurance premiums for the owner’s and lender’s policies. Here are some of the typical fees built into the overall figure that is the sellers Closing Costs:

  • Brokers Commission – Or Flat Fee
  • Transfer Taxes – for transferring the property from one owner to another
  • Documentary Stamps on the Deed
  • Title Insurance – Split evenly between buyer and seller.
  • Escrow Fees – Seller pays 60% and the buyer pays 40%
  • Property Taxes – Prorated depending on when they are due and time of year sold. Basically, any property taxes (local, school & county) that were paid by the seller for the time the buyer owns the home will be reimbursed to the seller. However, if the real estate taxes were not paid by the seller during their ownership, then the seller will be expected to pay this cost to the buyer.
  • Any buyer’s closing costs the seller has agreed to pay.

Some of these fees are set and others are negotiable. A seller may offer a buyer an incentive on paying points down for the buyer’s loan. This may mean more out of pocket for the seller at time of closing but can mean a higher purchase price overall.

As a seller, you are allowed to choose your escrow and title agency. Your Realtor® offers reputable company choices we have worked with for years and know that they can handle any job and be clear and precise about the details. The buyer will typically write the earnest money check to the Real Estate broker or the Escrow Company and the funds will be included in the final credits to the buyers.

Related: Understanding the costs related to selling real estate

For more details on the exact closing costs for your home please give us a call. We can go over the numbers in detail with you and write up a net proceeds from the sale of your home to give you a comfortable sense of where all the funds would be placed.