In Oklahoma, buyers can expect to pay 2%-5% of the purchase price in closing costs, while sellers typically pay 8%-10%. These percentages can vary based on the loan type, the value of the home, any contingencies written into the sales contract, and local legal fees. Specifically, government-backed loans often have higher fees, more expensive homes incur higher taxes and title charges, special contingencies increase legal costs, and municipal transfer taxes range based on location.
Key Takeaways
- Buyer closing costs are 2% – 5% of the Oklahoma home price
- Sellers pay about 6% – 10% including real estate agent commissions
- Major fees cover title work, taxes, lender charges and legal docs
- Closing costs vary by location, sale price, mortgage type
- Both buyers and sellers pay some shared closing fees
- Getting pre-approved early helps predict closing costs
What are Closing Costs in Oklahoma
Closing costs include lender charges, taxes, title insurance fees and more administrative expenses required to finalise the property ownership transfer when buying or selling a home in Oklahoma.
These costs are paid to various third-party agencies and attorneys that process the legal work and paperwork to formally record the transaction and close the deal. Closing costs don’t count toward the actual asset value of the property.
Buyers and sellers must complete the closing process together to officially transfer ownership based on the purchase contract’s terms. This is when all closing fees must be paid prior to getting the home’s keys.
Also read: Closing Costs in Alabama: A Guide for Buyers and Sellers
Different Types of Closing Costs
Some common closing costs paid by buyers and sellers in Oklahoma include:
Buyer Costs
- Loan origination fee
- Loan application fee
- Underwriting fee
- Appraisal fee
- Title insurance
- Recording fees
- Attorney fees (optional)
- Home inspector fees
- Prepaid property taxes and homeowners insurance
Seller Costs
- Real estate agent commission
- Closing agent fees
- Transfer taxes
- Pro-rated property taxes
- Home warranty (optional)
Factors Influencing Closing Costs in Oklahoma
While Oklahoma closing costs generally fall between 2% to 5% for buyers and 8% to 10% for sellers, several factors impact actual amounts including:
- Home price – Higher purchase prices increase taxes/fees
- Location – Closing rules and taxes vary by county
- Mortgage type – FHA & VA loans require upfront mortgage insurance
- Title complications – Additional title work results in higher legal fees
- Home insurance – Prepaid amounts vary by provider
Getting pre-approved and researching titles early can clarify budget expectations.
Also read: Closing Costs in Michigan: What Homebuyers Need to Know
Who Pays Closing Costs in Oklahoma
Traditionally, Oklahoma home buyers pay around 2% to 5% of the purchase price in closing fees and sellers pay 8% to 10% including agent commissions. However, the finalized contract terms specify cost-sharing.
It’s common for sellers to cover some buyer closing costs through closing credits or other sale incentives. First-time homebuyer programs may also offset certain expenses.
Who Pays Closing Costs on FSBO in Oklahoma
With For-Sale-By-Owner (FSBO) deals, sellers represent themselves without a real estate agent. While FSBO sellers avoid agent commissions, they often cover closing costs typically paid by the buyer’s agent, such as:
- Owner’s title insurance policy
- Document preparation fees
- Recording charges
FSBO sellers may offer closing cost credits they saved on commission to make their homes more appealing to buyers.
How Much are Closing Costs in Oklahoma
Across Oklahoma, total closing costs range from 2% to 5% of the purchase prices for buyers, and 8% to 10% for sellers on average. The average closing cost in Oklahoma is approximately $2,942.99 after taxes.
Typical closing costs breakdown as:
| HOME PRICE | BUYER CLOSING COSTS | SELLER CLOSING COSTS |
|---|---|---|
| $100,000 | $2,000.00 – $5,000.00 | $8,000.00 – $10,000.00 |
| $200,000 | $4,000.00 – $10,000.00 | $16,000.00 – $20,000.00 |
| $300,000 | $6,000.00 – $15,000.00 | $24,000.00 – $30,000.00 |
| $400,000 | $8,000.00 – $20,000.00 | $32,000.00 – $40,000.00 |
| $500,000 | $10,000.00 – $25,000.00 | $40,000.00 – $50,000.00 |
| $750,000 | $15,000.00 – $37,500.00 | $60,000.00 – $75,000.00 |
| $1,000,000 | $20,000.00 – $50,000.00 | $80,000.00 – $100,000.00 |
How Much are Closing Costs for Buyers in Oklahoma
For Oklahoma home buyers, closing costs typically range from 2% to 5% of the home’s purchase price:
For example, on a $300,000 home purchase, a buyer can expect to pay $6,000 to $15,000 in Oklahoma closing costs. That includes lender origination charges, title insurance, escrow fees, prepaid costs, a portion of transfer taxes, etc.
The breakdown of closing costs for a $300,000 Oklahoma home buyer may look like:
- Lender charges – $3,500 (origination, underwriting, etc.)
- Title search & insurance – $2,000
- Escrow fees – $750 (split with seller)
- Transfer taxes – $500 (portion)
- Prepaid costs – $3,000 (insurance, interests, HOA dues)
- Other fees – $250+ (credit check, inspections, etc.)
Total closing costs = Around $10,000 or 3.3% of the $300,000 purchase price.
By shopping around for title insurance, getting quotes from various lenders, or looking for rebates – buyers can aim to reduce their closing costs in Oklahoma.
Also read: Closing Costs in Missouri: Complete Guide
How Much are Closing Costs for Sellers in Oklahoma
For Oklahoma home sellers, typical closing costs range from 8% to 10% of the home’s sale price.
So on a $250,000 home sale in Oklahoma, total closing costs for the seller come to around $20,000 to $25,000.
Here is an example breakdown of closing costs for an Oklahoma home seller:
- Agent commissions – $15,000 (6% of sale price is typical)
- Payoff existing mortgage – $175,000
- Transfer taxes & fees – $1,250
- Legal fees – $500
- Title insurance – $1,000
- Escrow charges (split) – $750
- Prepaid costs – $1,500 (property taxes, HOA fees)
- Miscellaneous – $1,000
Total closing costs = Around $195,000 or 10% of the $250,000 sale price.
By negotiating lower real estate commissions, timing the closing strategically, or challenging extra fees – Oklahoma home sellers have some opportunities to reduce their closing expenditures.
How are Closing Costs Calculated
Closing costs are calculated by tallying up all the expected fees, taxes, title charges, lender fees and prorated costs charged by various parties to finalize the home sale legally.
Lender fees like origination can be a flat charge, percentage of the mortgage loan, or based hourly preparation fees. Title insurance is usually priced based on home value. Transfer taxes are calculated as a percentage of sale price under law.
Prorated costs are determined by daily rate based on timing of the closing date – to split costs owed between buyer and seller.
Estimate your closing costs:
- Add up lender/origination fees + title insurance estimate + legal fees
- Calculate transfer taxes based on state/county percentage rates
- Estimate prepaid costs like advanced property tax and insurance payments
- Divide split costs like escrow service fees 50/50 (or negotiable split)
- Factor in miscellaneous fees like inspections,HOA charges, etc.
- Total up all fees estimates on both buyer and seller side
Having an experienced real estate attorney or agent prepare the closing cost estimates can help improve accuracy and avoid shortfalls. Always budget extra cushion for unexpected fees too.
Steps to Prepare for Closing
These tips can help buyers and sellers prepare for closing in Oklahoma:
For Buyers
- Shop and apply for mortgages early to allow enough processing time
- Review title insurance commitments carefully
- Clarify which inspections/fees are mandatory with your agent
- Research average prepaid costs/taxes for the property area
- Save up the recommended closing costs + down payment amount
- Notify agent of any special circumstances that could impact fees
For Sellers
- Review sales contract and know the closing date expectations
- Understand and start paying off seller obligations like liens
- Gather homeowners insurance info, utility account details for buyer
- Confirm final mortgage payment amounts to payoff lender
- Plan moving logistics and have funds for moving company
- Set aside recommended 8-10% of sale price for closing costs
Closing Costs in Oklahoma for Refinancing
Refinancing your mortgage in Oklahoma typically involves closing costs ranging from 1.47% to 2.94% of the loan amount, averaging around $2,943. This is lower than the national average. However, the exact cost can vary depending on various factors like your lender, loan size, and chosen services. It’s crucial to get a Loan Estimate (LE) from your lender to understand the specific breakdown of your closing costs.
Ways to Reduce Closing Costs in Oklahoma
Buyers and sellers in Oklahoma have some options to lower their closing expenditures:
For Buyers
- Negotiate seller contributions: Ask seller to pay 3-6% toward closing costs
- Shop around for title insurance deals
- Seek lender credits/rebates to offset origination fees
- Apply for down payment assistance programs
- Time the closing strategically to lower prepaid taxes owed
For Sellers
- Renegotiate commission rates with the real estate agent
- Pay down liens/loans before listing the home to reduce payoff amount
- Sell to iBuyers like Opendoor or Offerpad to get lower fixed fees
- Time closing date strategically to limit prepaid costs owed
- Dispute fee estimates that seem inflated by service providers
How to Avoid Paying Closing Costs When Buying a House
While rare in today’s market, some home buyers in Oklahoma may be able to avoid paying closing costs by:
- Making a “rent-back” offer: Buyer takes possession at close while seller rents for brief period
- Including closing costs in offer price: Ask seller to pay closing costs by increasing purchase price
- Paying points on adjustable-rate mortgage: Lower closing costs but higher long-term rates
- Getting 100% seller financing: No bank means lower third-party fees
However, the current Oklahoma housing market is very competitive for buyers. So being flexible on closing costs can make an offer more appealing to sellers.
How to Find a Trusted Real Estate Agent
- Ask for referrals: Seek recommendations from friends, family, or colleagues who’ve had positive experiences.
- Research online: Look at agent websites, social media profiles, and online reviews to gauge experience and reputation.
- Interview potential agents: Discuss their experience in your area, expertise with your property type, and communication style.
- Check reviews: Check reviews on sites like Zillow, Realtor.com, Google
- Check credentials: Verify licenses and any relevant certifications they hold.
- Trust your gut: Choose an agent you feel comfortable with and confident in their ability to represent your interests.
Conclusion
The closing process for Oklahoma home buyers and sellers involves paying a wide gamut of fees, taxes, title charges, and prepaid costs dictated by local laws, purchase loan types, property values and deal circumstances.
For buyers, closing expenditures commonly range between 2% to 5% of the home price while sellers end up paying around 8% to 10% including agent commissions. However, being an informed real estate consumer, shopping service fees competitively, negotiating strategically and timing decisions right can help both parties reduce their closing costs noticeably.
Hopefully this overview gives Oklahoma home buyers and sellers a transparent look into what closing costs entail as well as tips to optimize the process.
Frequently Asked Questions (FAQ)
Buyers in Oklahoma typically pay 2% to 5% of the purchase price in closing costs. These costs can include origination fees, appraisal fees, title insurance, escrow fees, and recording fees. The specific breakdown of costs can vary depending on the lender, loan type, property, and negotiated terms.
In Oklahoma, home buyers can expect to pay between 2-5% of the purchase price in closing costs. These costs cover various administrative and legal fees to finalize the transaction. Conversely, sellers typically pay 6-10% of the sale price at closing, though this includes the real estate agent’s commission. So for a $300,000 home sale, the Oklahoma buyer would pay $6,000-$15,000 while the seller pays around $18,000-$30,000 after the agent commission.
In Oklahoma, sellers typically pay a higher portion of closing costs compared to buyers. This can range from 8% to 10% of the sale price and includes the real estate agent commission, which is usually split between the buyer’s and seller’s agents.
In Oklahoma, the seller typically pays for the owner’s title insurance policy, while the buyer pays for the lender’s title insurance policy. However, this can be negotiated in the purchase agreement.
At closing, buyers are typically responsible for paying prorated property taxes from the date of closing until the end of the current tax year. This means they reimburse the seller for the portion of property taxes they have already paid for the year.
Oklahoma property taxes are due in two installments: December 1st and April 1st of each year. If the taxes are not paid by the deadline, penalties and interest will accrue.
There is no separate homeowners tax in Oklahoma. Property taxes encompass all types of real estate, including homes. The property tax rate varies by county and school district.
