Oregon Real Estate Closing Costs Statistics (2024 Survey)
A new RealEstateBees.com survey of over 1,000 active real estate professionals found average closing costs for sellers and buyers in Oregon.
We reached out to over 1,000 active real estate professionals from Oregon to collect their insight on the real estate closing costs across the state.
The results are part of the large-scale survey—Nationwide Real Estate Closing Costs Index—conducted by the Real Estate Bees, a leading online real estate platform.
What Is Included in Closing Costs for a Seller in Oregon?
Costs included in seller’s closing costs most commonly across Oregon.
What Are Average Closing Costs for a Seller in Oregon When Selling with a Realtor?
The most common amounts of seller’s closing costs across the state of Oregon in an agent-assisted sale.
What Are Average Closing Costs for a Seller in Oregon When Selling 'by Owner'?
The most common amounts of seller’s closing costs across the state of Oregon in a FSBO sale.
How to Reduce Closing Costs for a Seller in Oregon?
There are limited options for reducing closing costs for a seller.
The seller could strategically pick which month of the year they wish to close in. This is not a very practical solution, however.
The most practical solution is to work with a limited representation agent for a reduced commission.
This arrangement results in a lower closing cost to the seller as they are paying less in real estate commissions. It also limits what that agent may do for them as far as marketing or negotiating goes.
For a seller, it’s about negotiating commission. They could interview multiple real estate agents in Oregon and go with the Oregon real estate brokerage offering the lowest commission.
That may not get them the best service, but if they are solely focused on cost, that’s their answer.
They could shop different escrow companies, but rates are pretty similar across the board.
Since the seller has the guaranteed income from the sale, reducing their closing costs is rarely a concern.
In the rare situation where a seller is upside down, owing more than they will receive from the sale, the buyer would most likely increase the sale price to cover that and get the deal done.
Can a Seller Avoid Paying Closing Costs in Oregon?
Yes, but it would be challenging.
They would need to sell by themselves to avoid paying a realtor commission, then negotiate with the buyer to pay the title insurance agency in Oregon and escrow fees, and lastly, time the sale so they don’t have any property taxes due.
That’s a heavy lift with a low probability of success.
It is possible to avoid paying closing costs altogether.
If two willing parties can work together without real estate agents and the buyer is able to pay cash for the property, the two can simply go down to the courthouse and record a deed in the new owner’s name.
In rare cases, the seller may not have enough equity in their home to pay off their current loan and still cover their own closing costs.
This results in what we call a short sale. The seller then has to negotiate with not only the buyer, but their current loan to try and arrange for the lender to accept less than the amount owed.
So, there is still room to pay necessary closing costs. In extreme cases, the lender may be unwilling to cooperate, and instead resort to foreclosure.
If the property for sale is priced below market, buyers may be able/willing to raise the sale price to ensure the net proceeds from the sale will cover the seller’s closing costs, but that rarely happens with prices so high right now.
The asking price is almost always as high as possible, so buyers are rarely willing/able to pay more. Buyers would prefer to let the seller get foreclosed on than to overpay.
Raise the sale price to accommodate the seller’s costs. This is risky if the sale is based on a loan that requires an Oregon property appraiser but can be done.
The risk goes away if it’s a cash sale, or the buyer has the additional cash to cover the costs or higher sale price.
What Is Included in Closing Costs for a Buyer in Oregon?
Costs included in buyer’s closing costs most commonly across the state of Oregon.
What Are Average Closing Costs for a Buyer in Oregon When Buying with a Realtor?
The most common amounts of buyer’s closing costs across the state of Oregon in an agent-assisted sale.
What Are Average Closing Costs for a Buyer in Oregon When Buying Without a Realtor?
The most common amounts of buyer’s closing costs across the state of Oregon in a FSBO sale.
What Are Average Closing Costs for a Cash Buyer in Oregon When Buying with a Realtor?
The most common amounts of closing costs paid by Oregon cash home buyers in an agent-assisted sale.
What Are Average Closing Costs for a First-Time Buyer in Oregon When Buying with a Realtor?
The most common amounts of a first-time home buyer’s closing costs across the state of Oregon in an agent-assisted sale.
How to Reduce Closing Costs for a Buyer in Oregon?
Buyers have opportunities to reduce their closing costs by asking their lender about different rate options.
Many buyers share the common misconception that there is only one rate available.
However, if they ask their lender for options, their lender will generally have available rates with higher closing costs and lower closing costs.
If the buyer can live with a higher rate, the lender can reduce closing costs and vice versa.
Avoid or minimize any points paid relevant to the loan.
Ask the seller to provide a credit to cover any closing costs (usually limited to 3% of the purchase price).
Time the sale to minimize any property tax impact. Ask the seller to take on escrow costs traditionally paid by the buyer.
The most common strategy is to raise the sale price over the asking price, with the seller paying that amount toward the buyer’s closing costs.
As long as the buyer qualifies to borrow the higher amount, it allows them to finance that amount and repay it over time.
How to Negotiate Closing Costs With a Seller in Oregon?
In the offer, on “paper”. Depending on the state of the market, a buyer could give the seller the asking price or perhaps more, in exchange for the seller taking on more costs.
Beyond that, one would want to clearly articulate what costs the buyer is asking for the seller to absorb in the offer.
Verbal negotiation is not a good path unless there is a high level of trust between the real estate agents.
Most loan programs allow for a buyer to negotiate up to 3% of the sales price — sometimes more — as seller concessions to pay for the buyer’s closing costs.
This, of course, costs the seller a considerable amount of money, so it is less common in hot markets where there are fewer sellers than buyers.
On the other hand, in a more balanced market or when buyers outnumber sellers, it becomes a far more common practice.
Offering above the asking price and stipulating that those funds are to be contributed by the seller toward buyer’s closing costs is common and easily understood by sellers. It doesn’t really take any negotiation.
Can a Buyer Avoid Paying Closing Costs in Oregon?
There are some loan products that permit a buyer to have all of their closing costs paid for by the seller.
Frequently, these loan programs may also require zero down. Examples of these loans are USDA rural loans or Veterans loans.
Not likely. Most sellers in Oregon will expect the buyer to pay for half the escrow fee and pay for their Oregon real estate lender‘s title insurance policy and any other processing fees.
Are There Closing Costs Assistance Programs Available for Buyers in Oregon?
There are not currently any closing cost programs available to help buyers pay for their closing costs.
There are, however, down payment grants that take care of the down payment for them.
So if they have any savings available, they can be used for closing costs, or they can use gift funds to cover their closing costs.
Yes. They are typically grant-based or special loan programs available through government entities or community development organizations.
Who Pays Closing Costs in a Conventional Sale in Oregon?
Who Pays Closing Costs in a Cash Sale in Oregon?
Are Closing Costs Negotiable in Oregon?
What Are the Available Ways to Pay Closing Costs in Oregon?
Why Are Closing Costs So High in Oregon?
Between the buyer’s side and the seller’s side of a real estate transaction, closing costs can sometimes approach 10% of the price of the home.
The real estate commissions alone will land between 5% and 6% of the purchase price. For an average home in the state of Oregon, this can be $22-25,000.
Then, lender and title company fees will add between 1.5% to 2.5% more.
Finally, Oregon property taxes are paid only once annually, so depending on the month of closing, there can be thousands more added to the buyer’s closing costs just in property tax prepayments.
It is therefore very easy to exceed $30,000 in closing costs just for selling an average home in Oregon.
The answer is highly dependent on who you are—buyer or seller.
The seller’s costs may seem high since they are paying a commission, typically from 4-6% of the sale price.
That’s a negotiable fee for services provided; services that require a high amount of education, experience and effort.
Everything else for the seller are fees associated with the Oregon escrow company, fees regulated by law.
For buyers, the biggest cost is likely any points they are paying for their loan. Second to that are pre-paids like property taxes.
High is relative.
I wouldn’t say they are “high,” although property taxes in Oregon are higher than many other states, so that would contribute.
Who Pays Closing Costs in a Divorce in Oregon?
In Oregon, there isn’t a specific law or rule about who pays the closing costs when selling a house during a divorce.
In dividing assets and liabilities, a court is tasked with making just and equitable division of those assets and liabilities.
Ultimately, it will depend on the circumstances. Generally speaking, when a house has to be sold, the closing costs are usually taken out of the proceeds from the sale of the house.
If the parties split the remaining proceeds equally, then they would be effectively sharing those closing costs.
If, however, the order or arrangement was that one party receives a specific amount or percentage of the proceeds with the other party receiving anything that is leftover, it could be viewed as that party paying those closing costs.
If the house doesn’t have to be sold, then there aren’t any closing costs.
But if one party is required to refinance or assume the loan on the home and/or pay the other party for their share of the home, then the refinancing party is usually responsible for any costs associated with the refinance or assumption.
What Are the Transfer Taxes in Closing Costs in Oregon?
I am licensed in three states. None of them have transfer taxes at the state level. However, some counties have their own way of taxing real estate transfers.
In Washington County, Oregon, for example, a transfer tax of $1 per $1,000 in value is charged on all real estate sales.
Due to a state law passed in 1997, Washington County is the only county in Oregon permitted to charge this tax.
Who Pays Transfer Taxes in Closing Costs in Oregon?
Half of the tax is paid by the buyer, and half is paid by the seller.