Seller Closing Costs

Sellers and buyers have their own closing costs when a home is sold in Oregon or Washington. By in large, home buyer closing costs are the highest and most significant of the two, but depending on where exactly you live (what county and state), the seller will have varying closing costs in addition to real estate commission. Seller’s closing costs typically cover half of escrow (the buyer pays for the other half) and covers all or a big portion of the title insurance (that covers transfer of ownership). Typically the seller is also paying some mandatory costs with the county to officially record the sale. For more information, read our regularly updated reports below on seller closing costs, or reach out to us direct.

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Home Buyers and Seller Closing Costs – Portland, Oregon Metro Area Report

April 7, 2023

Updated 4/7/2023. For some people, “closing costs” is a vague term attached to selling or buying a home. Many aren’t clear about who pays what. Educating yourself on this part of the home selling/buying process is essential for a successful and surprise-free transaction. Closing costs vary from state to state. Also, because they’re based on the cost of the home in question, closing costs in the Portland metro area will be higher than other parts of Oregon due to comparatively higher home prices in the area. Keep in mind that some of these fees are payable to the lender and others to third parties, like home appraisers and title agencies. We want to dispel some of the mystery and confusion...

Should the Seller Pay the Buyer’s Closing Costs? 2022 Report

July 18, 2022

Selling or buying a home and getting approved for a mortgage can be a taxing process, even for those who have done it before. Laws and standards change, and for most of us, we only do it a few times throughout our lives. Closing costs are the biggest upfront financial investment, especially for the buyer. For both parties, the process and jargon involved can be cryptic and confusing. To help demystify the process, we’re breaking it all down here to help you better understand what to expect and when sellers may be asked to pitch in on the buyer’s closing costs. Let’s start with the basics. What are Closing Costs? Both buyers and sellers wind up forking over a substantial...

What is Title Insurance and Who Pays for It?

October 25, 2021

Buying or selling a home means anticipating costs, some of which are closing costs. In Oregon, most of the amount needed at closing is for title insurance. This type of insurance isn’t required by law in Oregon, however, lenders require it to ensure a smooth transition from seller to buyer and to protect their own financial interests. But the need for title insurance doesn’t end there. So, what is title insurance, and why is it important? What is Title Insurance, and Why do You Need It? Holding “title” on a home is different from having a deed to a home. The deed is the tangible piece of paper that names the owner, whereas “title” refers to the legal right to ownership,...

Should the Seller Pay for Closing Costs? 2021 Update

August 16, 2021

Closing costs constitute some of the most opaque parts of the home buying process. As you’re looking to sell, you might find yourself wondering exactly what it is that you owe to the buyer. What do closing costs entail, and who pays for them? We’re here to demystify this process. What Constitutes Closing Costs? When you’re closing on a home from the buyer’s side, you’re likely looking at some serious up front charges, and not just the down payment. Buyers also pay for the inspection and appraisal, and put down earnest money (typically 1% of the sales price in our area). That’s some serious cash! On the seller’s side, expect to pay half of the escrow and owner’s title insurance....

Who Pays for Title Insurance? Oregon Closing Costs

September 21, 2020

When’s the last time you heard of someone losing their home because an unsatisfied heir of a previous owner laid claim to it? You probably haven’t because of title insurance, an often-overlooked component of real estate transactions. In Oregon, title insurance represents a lion’s share of the average home seller’s closing costs, but home buyers have to buy a policy, too. But let’s start with the most frequently asked question our real estate agents are asked about title insurance: What exactly is it? What is Title Insurance?  A “title” refers to the legal right to ownership; it’s an abstract concept and different from a “deed”. With a deed, you just have a piece of paper stating ownership, which is pretty...

How much are Sellers’ Closing Costs to Sell a Home in Oregon?

September 11, 2020

Updated 04/2023. The seller pays for the title insurance closing cost. A home seller has to pay for the bulk of title insurance cost. Title insurance is the policy purchased to protect the buyer from a false or hidden seller, essentially ensuring that the person selling the home is legally allowed to sell the home. Title insurance covers the passing of ownership to the buyer, and by Oregon state law, is paid for by the seller. Title insurance rates change, but a rough estimate for today is about $1350 for a $500,000 home. The price goes down if the home sales price is less and up if it is more. It is my understanding based on industry experience that this...

Should Seller Pay Buyer’s Closing Costs? – 2019 Update

May 31, 2019

1. Why does the buyer think the seller should pay? Many times sellers have not purchased a home in a while and it is easy to forget just how much it costs upfront for the buyer. The buyer must pay for the home inspection out of pocket (now typically around $500 or more for older homes), pay for the appraisal out of pocket (now often over $1,000), pay the downpayment (typically 5 to 20% with only 20% getting the best loans) and put down earnest money immediately (included as part of the downpayment and typically 1% of the sales price in our area), and pay loan origination costs and closing fees. That is a lot of money upfront. Even for...

Should Seller pay the Buyer’s Closing Costs? 2018 Update

May 8, 2018

Why is the buyer asking the seller to pay their closing costs? The buyer’s motivation is simple, they want to purchase a home! The buyer has to come up with the downpayment amount, money to order inspections, money to order the appraisal, and money for their buyer closing costs. This all can add up to tens of thousands of dollars. In order to get approved for a loan, the buyer may have to ask the seller to assist them with their closing costs in full or in part. What are the buyer’s closings costs? The buyer’s closing costs are so high because they include the loan origination cost, property taxes in advance, homeowners insurance in advance, mortgage interest in advance,...

Should the Seller Pay the Buyer’s Closing Costs? 2017 Update

May 12, 2017

The Portland real estate market is roaring back to life after an unusually quiet first quarter. (If you’re not around from here, it was an unusually difficult weather cycle!) When things are quiet in a real estate market or when a home does not sell right away many sellers will see an offer where the buyer is asking the seller to pay $3,000, $6,000, even $10,000 or more of the buyer’s closing costs. Should the seller pay these buyer’s closing costs? The short answer is maybe, this article will help you understand the pros and cons. Doesn’t the seller have their own closing costs? Yes, the seller in Oregon has closing costs governed by the state. It is called “owners...

Should the Seller pay the Buyer’s Closing Costs?

January 6, 2014

With over twelve years of Portland real estate agent experience, I have heard this question at least a hundred times. Many sellers are surprised to get an offer from a buyer that explicitly asks the seller to pay their closing costs. A lot of sellers don’t know that it is a possibility, much less a common element of a real estate offer in Portland. It is a trend that continues and grows because the buyer’s closing costs keep increasing. I have seen buyers put in their offers for the seller to pay over $10,000 in buyer’s closing costs. That is an extreme example, but most buyers experience a sticker shock of at least $5,000 in closing costs on top of...