Closing Costs in Oregon: A Ultimate Guide for Home Buyers and Sellers in 2024

When buying or selling a home in Oregon, you will incur closing costs on top of the home’s purchase price. Closing costs for buyers are typically 2%-5% of the purchase price, while sellers pay around 7%-8%. These fees cover services like appraisals, inspections, taxes, insurance, legal fees, and more to finalise the real estate transaction.

Key Takeaways

  • For buyers in Oregon, closing costs range from 2% to 5% of the purchase price
  • Sellers in Oregon typically pay 7% to 8% of the sale price in closing costs
  • Exact costs depend on loan type, home value, sale contingencies, and local laws
  • Buyer closing costs cover lender fees, escrow charges, title insurance, etc.
  • Seller closing costs include agent commissions, escrow fees, title insurance, etc.
  • Several factors like sale price, loan type, and more determine total closing costs
  • Both buyers and sellers can take steps to reduce closing costs in Oregon

What are Closing Costs in Oregon

Closing costs refer to various fees charged to both the buyer and the seller to complete the real estate transaction when a home is sold or purchased.

These fees pay for critical services in the closing process – third-party services like appraisals and inspections, as well as administrative costs for paperwork processing, underwriting, and document recording. Closing costs also include prorated taxes and insurance to adjust for mid-year transfer of ownership.

While the seller or buyer may pay certain fees, the total closing costs range from 2%-5% of the home price for buyers and 7%-8% for sellers on average. The exact percentage varies case by case based on the home price, location, lender, and other contingencies.

Also read: Oklahoma Home Buyer and Seller Closing Costs

Different Types of Closing Costs

For Home Buyers

  • Origination charges – Loan application and processing fees
  • Appraisal & inspection fees – Home appraisal and inspection costs
  • Title charges – Title search, insurance fees
  • Taxes & insurance – Prepaid property taxes and home insurance
  • Government fees – Recording, transfer taxes

For Home Sellers

  • Agent commissions – Buyer’s and seller’s agent fees
  • Title charges – Title search, lien payoffs, deed preparation
  • Transfer taxes – Based on property sale value
  • Legal fees – Attorney charges for documents
  • Prepayment penalties – Existing loan early repayment fees
  • Recording fees – To register property transfer

The main categories cover fees charged by lenders, appraisers, inspectors, title companies, attorneys, counties, and real estate agents to facilitate the transaction. Buyers and sellers pay different parties but both incur closing costs.

Factors Influencing Closing Costs in Oregon

While the average closing costs range between 2%-8% of the home price, many factors can make individual fees higher or lower for each home sale.

Some key factors that impact closing costs in Oregon include:

  • Home purchase price – Higher priced homes have higher closing fees
  • Down payment size – Lower down payments increase loan origination fees
  • Loan type and lender – FHA and VA loans often have higher upfront mortgage insurance and funding fees
  • Location – Closing fees can vary by county based on local taxes, rates and processes
  • Home age and condition – May impact inspection and appraisal fees
  • Title complications – Existing liens or easements raise title-related closing costs

Closing costs ultimately reflect the services required to complete the sale, which varies with each home. So while average costs are 2%-8%, it’s impossible to nail down an exact dollar figure until the specific closing disclosures are available.

Also read: Closing Costs in Alabama: A 2024 Guide for Buyers and Sellers

Who Pays Closing Costs in Oregon

In Oregon, it is customary for home buyers to pay approximately 2%-5% of the purchase price in closing costs, while the seller pays around 7%-8%.

However, the buyer and seller can negotiate who pays which fees in the purchase agreement. And lenders often have loan options that affect the closing cost split as well.

Typically though, Oregon home buyers pay these main closing fees:

  • Downpayment
  • Loan origination and underwriting fees
  • Credit/appraisal fees
  • Escrow payments
  • Title search and insurance
  • Government recording charges
  • Partial cost of taxes and insurance

Meanwhile, home sellers often cover these closing costs:

  • Broker commissions
  • Payoff of any existing home loans or liens
  • Transfer taxes
  • Legal fees
  • Title search and insurance
  • Unpaid debts tied to property
  • Partial cost of prorated taxes and insurance

So while there is some overlap in shared closing fees, buyers and sellers generally pay the bulk of costs for certain services tied to their respective role in the transaction.

Who Pays Closing Costs on FSBO in Oregon

With For Sale By Owner (FSBO) home sales in Oregon where a real estate agent isn’t used, buyers may pay higher closing costs and sellers lower costs.

That’s because the largest closing cost is often the 5%-6% real estate broker commission paid by the seller. Without an agent involved, that broker commission is removed, lowering the total closing costs for a seller.

However, the seller still pays closing costs like transfer taxes, legal fees, unpaid property debts, and partial expenses for title insurance, recording fees, taxes and insurance. They usually save the most on broker commissions with FSBO home sales.

Also read: Closing Costs in Michigan: What Homebuyers Need to Know

How Much are Closing Costs in Oregon

Typical closing costs in Oregon range between 2%-5% of the home sale price for buyers, and about 7%-8% for sellers – regardless of whether you are buying or selling in Portland, Eugene, Bend, Medford or elsewhere within the state.

As the exact dollar amounts vary based on transaction details, here is an estimate of buyer and seller closing costs for different home price points in Oregon:

Home PriceBuyer Closing Costs (2%-5%)Seller Closing Costs (7%-8%)
$200,000$4,000 – $10,000$14,000 – $16,000
$300,000$6,000 – $15,000$21,000 – $24,000
$400,000$8,000 – $20,000$28,000 – $32,000
$500,000$10,000 – $25,000$35,000 – $40,000
$750,000$15,000 – $37,500$52,500 – $60,000
$1,000,000$20,000 – $50,000$70,000 – $80,000

As you can see, actual dollar amounts of closing costs climb higher along with rising home values. But the 2%-5% and 7%-8% ratios remain largely fixed across different prices.

How Much Are Closing Costs for Buyers in Oregon

For buyers purchasing a home in Oregon, closing costs usually range from 2% to 5% of the purchase price.

For example, on a $300,000 home, a buyer can expect to pay:

  • Origination charges: $900 – $1,800
  • Appraisal fee: $400 – $500
  • Credit report fee: $50 – $100
  • Title insurance premium: $728
  • Recording charges: $100
  • Transfer taxes: $50 – $150
  • Escrow fee: $400 – $700

Total buyer closing costs: $2,628 to $4,098

So for a $300,000 home, Oregon buyers pay between $8,760 to $13,660 in closing costs, averaging 2.9% to 4.6%.

How Much Are Closing Costs for Sellers in Oregon

For Oregon homeowners selling their property, closing costs generally range from 7% to 8% of the home sale price.

For instance, with a selling price of $500,000, seller closing costs may include:

  • Agent commission: $15,000 to $30,000
  • Payoff existing loans: $5,000
  • Title insurance binder: $500
  • Recording fees: $150
  • Transfer taxes: $100
  • Escrow charges: $400 – $750

Total seller costs: $21,150 to $36,500

So Oregon sellers can expect to pay $35,000 to $40,000 on a $500,000 sale, equaling about 7% to 8% of the price.

How are Closing Costs Calculated

Closing fees are calculated in a few ways:

  1. Percentage of Home Price – Origination fees, commissions and title insurance are often charged as a percentage of total property value.
  2. Percentage of Mortgage Amount – Application fees, processing and underwriting fees depend on your actual mortgage loan amount.
  3. Set State/County Rates – Recording charges, transfer taxes and prepaid costs use fixed pricing set by state or county.
  4. Professional Service Fees – Legal fees, credit checks and appraisal charges follow service provider rates based on effort required.
  5. Title Company Fee Schedules – Escrow and courier fees follow rate tables listed by the title insurer or escrow company in their contracts.

Buyers can access lender-specific closing cost calculators online to estimate their unique fees based on actual mortgage amount, credit score, location etc. Speak to lenders, agents and your closing/escrow company to understand exactly how your final charges are tallied.

Steps to Prepare for Closing

Follow these key steps when preparing for your upcoming closing in Oregon:

  1. Review Closing Disclosures: Go over the itemized list of fees to avoid any last minute surprises.
  2. Confirm Funds Needed At Closing: Check bank balances and wire transfer amounts needed to close on time.
  3. Complete Final Walkthrough: Inspect the property before closing to ensure repairs were completed as agreed.
  4. Sign All Documents: Review all paperwork thoroughly and complete signing with notary as needed.
  5. Submit Final Approvals: Provide signed affidavits, tax documents, wire confirmations.
  6. Review Title Commitment: Verify no new property title issues were discovered before closing.
  7. Bring Valid Photo IDs: Confirm IDs needed by a closing agent to verify identities.
  8. Exchange Contact Info: Share relevant phone numbers to coordinate on closing day.

Following these closing preparation tips will help you plan accordingly and avoid unexpected hassles during the closing process.

Ways to Reduce Closing Costs in Oregon

Buyers and sellers in Oregon can reduce their closing fees by:

  • Shopping around for the best rates on title insurance, escrow, etc.
  • Looking for lender credits to offset some upfront costs
  • Paying discount points to lower interest rates
  • Getting an Instant Quote to negotiate better offers
  • Asking about available rebates on real estate commissions
  • Comparing multiple quotes to find the best option
  • Checking for any local first-time home buyer programs offering cost assistance

How to Avoid Paying Closing Costs When Buying a House

While rare, some ways Oregon home buyers can buy with minimal or no closing costs:

  • Ask the seller to pay part or all of your closing fees
  • Use flexible seller concessions to cover costs
  • Take advantage of Down Payment Assistance (DPA) programs
  • Opt for no closing costs mortgage if eligible
  • Finance closing costs in higher interest rate
  • Pay for recurring costs in higher home price

However, most scenarios involve either the seller or buyer paying the closing costs. Completely avoiding them is less common.

How to Find a Trusted Real Estate Agent

Tips for Oregon home buyers and sellers to find an ethical, trusted real estate agent:

  • Get referrals from trusted friends, family, neighbors
  • Check online reviews on Google, Yelp, and Facebook
  • Look for proper licensing and expertise
  • Interview multiple agents before deciding
  • Ask about typical commission rates
  • Inquire about number of monthly transactions
  • Request buyer/seller references
  • Search public database for complaints
  • Go with an experienced, full-time agent

Vetting properly helps identify the most credible real estate professionals.

Conclusion

In closing, typical closing costs in Oregon range from 2% to 5% for buyers and 7% to 8% for sellers based on the sale price. Exact costs vary according to loan type, home value, and county-specific taxes and fees. Both buyers and sellers can shop around and negotiate to reduce expenses and prepare adequately for a hassle-free closing.

Frequently Asked Questions (FAQ)

What are the typical closing costs for buyers in Oregon?

For buyers in Oregon, closing costs typically range from 2% to 5% of the purchase price. So on a $300,000 home, a buyer can expect to pay between $6,000-$15,000 in closing costs.

What do closing costs for buyers cover?

Buyer closing costs in Oregon cover lender origination charges, appraisal fees, title insurance premiums, home inspections, escrow service charges, recording fees, transfer taxes, and more.

What are usual closing costs for sellers in Oregon?

Sellers in Oregon generally pay between 7% to 8% of the sale price in closing costs. For example, with a $500,000 sale, the seller would pay around $35,000-$40,000 in real estate agent commissions, escrow service fees, title insurance, state transfer taxes, and loan payoff charges.

What factors affect closing costs?

Major factors that influence closing costs in Oregon include the sale price, loan type and down payment amount, home contingencies agreed upon, as well as county-specific transfer taxes and fees. Higher priced homes and lower down payments lead to higher closing costs.

Who pays what closing costs in Oregon?

Buyers traditionally pay lender and financing related fees, while sellers pay agent commissions and title ownership transfer related charges. Costs like escrow services are often split between buyers and sellers.

How can I reduce closing costs in Oregon?

Shopping around, negotiating title and escrow rates, looking for lender credits, taking advantage of first-time buyer programs, asking for seller concessions or rebates, increasing interest rates, and paying discount points can help reduce closing costs in Oregon.

Who pays most closing costs?

In Oregon, sellers typically pay more in closing costs compared to buyers. This is because they are responsible for the real estate agent commission, which can be a significant portion of the total closing costs.

How much does it cost to buy a house in Oregon?

The cost of buying a house in Oregon varies depending on several factors, including location, property type, and market conditions. However, closing costs generally range between 2% and 5% of the purchase price. You can use online calculators or consult with a real estate professional to get a more accurate estimate for your specific situation.

What is the average closing time on a house in Oregon?

The average closing time for a house in Oregon typically takes 30 to 45 days after a purchase agreement is signed. However, this timeframe can vary depending on the complexity of the transaction and the responsiveness of all involved parties.

Who pays recording fees in Oregon?

In Oregon, the seller typically pays the recording fee, which covers the cost of officially recording the deed transfer with the county.

Do buyers pay closing costs in Oregon?

Yes, buyers in Oregon also pay closing costs, which can include loan origination fees, appraisal fees, title insurance, escrow fees, and prorated property taxes.

Do sellers pay closing costs in Oregon?

Yes, sellers in Oregon also pay closing costs, which typically include real estate agent commission, recording fees, and any other seller concessions agreed upon with the buyer.

Jean Folger

Jean Folger brings over 15 years of expertise as a financial writer, specializing in areas such as real estate, investment, active trading, retirement planning, and expatriate living. She is also the co-founder of PowerZone Trading, a firm established in 2004 that offers programming, consulting, and strategy development services to active traders and investors.

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