Home Selling in Portland>Question Details

Danc, Home Owner in Portland, OR

Seller-paid closoing costs

Asked by Danc, Portland, OR Tue Aug 7, 2012

What is a reasonable range of total closing costs in Portland OR that a seller should pay for a residential prpoerty transaction? What portion or specific costs should the buyer be paying?

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6
Brad Fix’s answer
the seller is only responsable for closing costs on cerain loans such as VA the problem is cash is short on both sides of the transaction hard for seller to pay closing costs with no equity in home asking for closing costs can make a sale be not acceptable as seller has to pay commission. so if you need to have seller pay closing costs best to look at homes where there is equity not short sales . banks will sometimes pay for closing cost on bank owned homes. as a seller paying closing cost can be a strategy to help you sell your home if you have equity.
0 votes Thank Flag Link Tue Aug 7, 2012
Buyers and Sellers split the Escrow, Title insurance and recording fees. The buyer's additional closing costs are taxes, insurance and mortgage origination fees. Depending on the loan program this range from 2-6%. In this market it is very commonplace for buyers to ask sellers to contribute 2-3% towards the buyers closing costs and pre-paids. This allows buyers to not have to bring as much cash to the deal. Whenever I list a home or work with buyers I always talk about NET offers or the price after all closing costs are considered. It is very important to know what concessions other homes in the area are closing with, so that buyers/sellers can make educated decisions.

I hope this helps!
0 votes Thank Flag Link Mon Dec 17, 2012
If you are a home seller is not unusual, these days, to see the buyers asking for closing costs. But you don’t have to fall for everything a buyer is asking you to do, including paying these closing costs. The buyers ask for “closing costs and pre-paids”. Well, these pre-paids usually are more than the closing costs and you can agree on paying only the closing costs (fees related with the loan origination) but not the pre-paids. If there’s competition in the area and the buyer has other options beside your house, but sees your property as the main option, I would advise you to “throw” a little more to the buyer in order to get your property sold. Your agent should offer an idea on what to do.
0 votes Thank Flag Link Tue Aug 7, 2012
It is very common in our area for buyer's to ask for closing costs to be paid by the seller, however, Tim was right below in that sellers look at the net amount to them (offer price minus closing costs asked for). 3% of the sale price is very common to ask for.

Mandy Lewis
Broker, Keller Williams
(503) 522-5803
Web Reference: http://www.pdxrockstars.com
0 votes Thank Flag Link Tue Aug 7, 2012
Buyers and sellers split the cost of title and escrow fees in Oregon, and the amount is dictated by the sale price of the property, as well as the date of the closing (which affects property tax prorates).

A buyer will have additional closing costs, dictated by their loan, insurance and property tax pre-payments. A buyer can ask a seller to credit them, at closing, to help in paying their closing costs. Their credit limit is also dictated by their loan type, if they are using financing for their purchase. Most loans programs allow up to 3% of the sale price to be credited to buyer, from the seller.
0 votes Thank Flag Link Tue Aug 7, 2012
To answer a question with another question: so in OR this is state law that both seller & buyer must split title & escrow fees? Why, as stated by Tim Moore below, would it be unacceptable for the seller to pay nothing towards closing costs, other than fees required by law? As a prospective home seller I am hiring an attorney rather than a realtor to finalize my sales contract. What obligations do I have to pay any realtor commission for the buyer? If a buyer wants to buy my house, they can pay their own realtor commission and closing costs. That's a hard reality in today's market, as sellers are barely covering their asking price and now they're expected to pay additional "incentives" out of pocket as well?
Flag Wed Aug 22, 2012
Around here the sellers pay nothing and the buyers pay for all costs they incur. Why should it be different elsewhere? I know in some markets sellers pay some costs for the buyer, but just remember the sellers look at the bottom line. So an offer of $200,000 with seller paying $4000 in CC is the same as an offer of $196,000 and no CC. If the seller wants $200,000 and you want them to pay $4000 in CC you need to offer $204,000 and hope the home appraises for $204k.
0 votes Thank Flag Link Tue Aug 7, 2012
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