How Much Are Closing Costs in Oregon 2024?

It’s no secret that buying a home is a huge financial decision, and there’s a lot more to consider than just the price of the home. Another substantial cost to consider when you’re buying a home is how much closing costs will be.

Closing costs are the taxes and fees associated with the purchase and sale of a home, such as title insurance and lender fees. If you’re feeling unprepared or overwhelmed, don’t worry. To help you budget for closing costs, this Redfin article will cover how much closing costs are in Oregon , who pays for them, and which costs you can expect to pay as a buyer and as a seller.

How much are closing costs in Oregon?

Before securing the keys to your new home, homebuyers will need to pay for closing costs. As a general rule of thumb, you can expect closing costs in Oregon to add up between 2%-5% of the purchase price. But it’s important to remember that this is just a range and the total amount will depend on numerous factors, such as the purchase price of the home, the type of loan, and any adjustments negotiated with the seller.

Let’s say you’re buying a home in Portland, where the median home sale price is $539,000. Based on this, you could expect closing costs to be between $10,780 and $26,950. Whereas if you’re buying a home in Eugene, which has a median sale price of $468,750, closing costs could be anywhere from $9,375 to $23,438.

Who pays closing costs in Oregon?

Generally, both buyers and sellers can expect to pay closing costs. But the buyer and seller will pay for different closing costs and likely have different total closing cost amounts. Another thing to keep in mind is that buyers typically pay for closing costs out of pocket, while the seller’s closing cost payments are typically deducted from the home sale proceeds.

Buyer closing costs in Oregon

For homebuyers in Oregon, you can expect to pay between 2%-5% of the home’s purchase price. If you paid earnest money, this amount will be subtracted from your closing costs, which will reduce the total amount you owe at closing. Earnest money is typically between 1%-3% of the home’s price. Below are some of the common closing costs paid for by the buyer:

• Appraisal fee: Home appraisals, which typically range from $300 to $500, are usually paid for separately at the time of the service. However, if not, you’ll need to pay for this at closing.
• Inspection fee: Although not required, a home inspection is highly recommended. Home inspections generally range from $300 to $500 in cost and are usually paid at the time of service. However, if not, it will need to be paid at closing.
• Loan origination fee: Your lender may charge a fee for creating your loan. It’s important to inquire about what this cost covers and whether it’s negotiable to potentially avoid high costs.
• Loan processing fee: Lenders may also charge a loan processing fee, covering underwriting and related services. Similar to the origination fee, check with your lender to understand its purpose and possible waivers.
• Loan discount points: If you buy discount points to lower your interest rate, you’ll pay a one-time fee at closing. These points can lower your rate by 0.25% to 0.5%, but consider your long-term homeownership plans before paying for a reduced rate.
• Private mortgage insurance (PMI): Required for down payments under 20%, PMI might involve an upfront fee at closing, depending on the loan type. It’s usually part of your monthly payment, but some loans offer the option to pay it as a one-time fee.
• Title insurance: Title insurance is a one-time closing cost, with buyers commonly paying for both lender and owner policies.
• Homeowners insurance: In Oregon , your annual homeowner’s insurance premium may be part of your closing costs.
• Homeowners Association dues: If your property is part of a homeowners association, you’ll likely pay one month’s dues upfront at closing. These fees vary and contribute to maintenance and operational costs.
• Property taxes: Buyers may have to prepay property taxes as part of their closing costs in Oregon .

Seller closing costs in Oregon

How much closing costs are in Oregon for sellers will vary between each transaction, but here are some of the common fees and costs covered by sellers:

• Real estate agent commission fees: These fees can be a significant cost for sellers. Commission fees may vary and are subject to negotiation. Sellers should discuss their options with their agent.
• Homeowners Association fees: If the property is part of an HOA, the seller may need to pay a variety of fees. These can include HOA transfer fees, outstanding dues, and possibly a fee for obtaining HOA documents required by the buyer. The exact fees will depend on the HOA’s rules and regulations.
• Property taxes: Any outstanding property taxes will be due at this time. However, if the seller has prepaid property taxes for the period that extends beyond the closing date, they may be credited back for the portion they’ve paid but won’t use.
• Title insurance: Sellers typically cover the cost of the buyer’s owner’s title insurance policy. This policy protects the buyer from any potential title issues that may arise after the property is sold. The cost of title insurance can vary but is generally based on the property’s sale price.

Median home sale price data from the Redfin Data Center during July 2024.