Sellers’ Comprehensive Guide to Closing Costs in Oregon
Selling your home is an exciting prospect, but many homeowners are surprised to learn just how expensive it is to finalize a sale. Sellers are on the hook for many closing costs that significantly impact their net proceeds when all is said and done.
In Oregon, closing costs typically add up to 6% to 10% of the final sale price of your home. However, your total cost can vary depending on what specific factors are involved in your sale.
To help you get a clear idea of what you’ll owe in closing costs after selling your Oregon home, HomeLight spoke with a leading local real estate agent and put together this comprehensive guide.
Oregon closing cost overview
Here’s an overview of the most common closing costs that apply to Oregon home sales. Don’t worry — we’ll break down each of these costs later on.
Closing cost
Average cost
Seller responsibility
Mortgage Payoff
The average Oregon mortgage debt is about $279,907
Yes
Property taxes
0.93% of the property’s value on average
Sellers owe property taxes prorated to the day of sale.
Reconveyance/recording fee
About $200, according to Folz
Yes
Washington County transfer tax
0.1% of the sale price
Sellers who live in Washington County pay this tax.
Escrow fees
$1 per $1000 plus $1200
Negotiable (usually split evenly between buyer and seller)
Title insurance
0.1% to 2% of the sale price
It’s customary for the seller to pay for the owner’s policy.
Real estate agent commission
3% to 6% of the sale price
Yes
Home warranty
$222-$1,877
Negotiable
HOA dues
Varies depending on HOA
Prorated to the day of sale; only applicable if you belong to an HOA
Real estate attorney fees
Around $300 per hour
Yes (if you choose to hire one)
Oregon sellers can expect to pay these closing costs
Some closing costs apply to almost every home sale. Let’s review the most common closing costs for Oregon sellers:
Mortgage Payoff
In order to legally transfer ownership of your home, you need to own your home free and clear. This means that if you have an existing mortgage, you have to pay it off before the property can officially change hands.
In Oregon, the average outstanding balance on a mortgage is around $279,907. Typically, homeowners use the proceeds from their home sale to cover this cost. Because this cost is more or less baked-in to the nature of the transaction, we’ve excluded it in our estimate for the average Oregon closing costs figure.
Property Taxes
Local governments levy property taxes, so the total cost varies. However, the average property tax rate across all Oregon Counties is 0.93%. A homeowner is responsible for paying property taxes on their home for the duration they own the property.
Christine Folz, a Salem, Oregon, real estate agent who sells more homes than her peers by 4%, explains:
“The Oregon tax year ends on June 30, and taxes are due on November 5. If you sell your home between those two dates and haven’t paid your taxes yet, you’ll pay the buyer a prorated amount for the days that you lived in the home. On the other hand, if you sell and have already paid your taxes for the year, the buyer will credit you a prorated amount for the taxes you’ve already paid.”
Loan Reconveyance and Recording Fees
Mortgage companies typically charge a fee to close out your loan and record the release of their claim on your property with the state. Often, these charges are combined into a single reconveyance/recording charge.
The price of recording fees varies from county to county. For example, Multnomah County charges a base fee of $86 plus $5 for each additional page of paperwork, while Deschutes County charges $93, plus $5 per page.
Folz tells us that the charge to file the paperwork depends largely on your lender; however, Oregon sellers can expect to pay around $200 overall in reconveyance/recording fees.
Washington County Transfer Tax
If you live in any Oregon county other than Washington, you won’t owe any transfer taxes on your home sale. For those who live in Washington County, don’t worry too much. This county only charges 0.1% of your home’s final sale price in transfer taxes.
