Lesser agents don’t discuss closing costs with sellers until the end of the transaction. Typically the conversation happens right about the time the seller receives their estimated settlement statement from the title company and see the thousands of dollars they are coughing up at the closing table. As you can imagine, it is typically not a pleasant conversation!
Generally, the closing costs to the seller will be less that 1% of the sales price. Laws, regulations, and customs vary by state and often by county but in Oregon most fees related to title insurance and escrow are regulated by the state. So these are not things sellers can shop around for to try and save a few bucks. As Realtors, we typically refer our clients to title companies and escrow officers that we know are great communicators and efficiently get deals done.
In Oregon it is customary for the seller to pay for the title insurance policy. The seller is saying to the buyer, “Mr. and Mrs. Buyer, I paid to insure that the property is free and clear of any liens and encumbrances that you don’t know about.”
Beyond the title insurance costs, there are escrow fees. These are expenses related to shuffling the paper around, getting signatures and recording the sale with the county. Oregon buyers and sellers typically split these fees 50/50.
If you ever have a question about how real estate transactions work, don’t hesitate to call us. With over 30 years of combined experience, we have you covered!