Don’t get surprised by the closing costs you’ll have to pay to finalize your sale. Knowing what closing costs are and how much they are, can save you from losing thousands of dollars on closing day. Check out this guide on Oklahoma closing costs for sellers.
“Closing costs” is a broad term that includes a variety of fees and expenses accrued during and to finalize a home sale. These fees include services like title searches and escrow account, and can amount to 7% of a home's final sale price.
Sellers should expect to pay around 1% to 3% of their home’s final sale price in closing costs. In addition, realtor commission fees are traditionally paid by the seller at closing. Commission fees are 6% of a home's final sale price on average.
However, it's important for homeowners to remember that they can save money during their home sale. Home sellers who are looking to save can save up to 50% on commission by working with a full-service, discount agent.
Don’t let closing costs take you by surprise and cause headaches. We’ve got you covered with all the information you’ll need about closing costs in Oklahoma.
What are closing costs?
Closing costs are a collection of fees that are paid during the final stage of a home sale. Closing occurs once all contingencies of the purchase agreement have been upheld and all the required paperwork has been signed and filed.
Closing ensures the sale is legal and closing costs cover the services and fees that accrue during the process. Once closing is finalized, the money is released to the seller, less closing costs and agent commissions — assuming the seller had enough equity in their home and doesn’t have to pay out of pocket.
How much are closing costs in Oklahoma?
Closing costs total anywhere from 1%-7% of a home’s final sale price, according to realtor.com. Buyers cover the bulk of these costs as they typically pay around 4% in closing costs while a seller pays 1-3%.
The total will vary depending on local and municipality laws, HOA agreements, and home value. Your agent can give you a better idea of what you should expect to pay at closing.
How to Calculate Your Closing Costs in Oklahoma
Knowing just how much you'll be paying in closing costs can help sellers plan financially. Home sellers can easily calculate their expected closing costs by using this simple equation.
(Home Sale Price) x (Closing Cost Percentage) = Closing Costs
September 2019 data from Zillow showed the median sale price of an Oklahoma home is $148,000. In this case most sellers would pay:
$148,000 x .03 = $4,440
However, it’s important to remember that this is just a ballpark estimate and closing costs will vary. Also, sellers will pay both the listing and the buyer’s agent commission at closing. Since the average total commission rate in Oklahoma is 6%, this would mean paying another $8,800.
What’s included in Oklahoma closing costs?
There are a variety of services that are covered by closing costs. Sellers should be aware of the full range of costs that they may have to pay — either legally or via negotiation. Here’s a breakdown of what’s included in Oklahoma closing costs.
Title Search: $300 to $500
This verifies that the home seller is the legal owner of the property they are selling.
Title Insurance: $1000
Title insurance protects the buyer and lender from any title issues that crop up once the home sale has been completed.
Home Inspection: $300 to $500
This inspection confirms that there aren’t any major problems with the home’s major systems or structures.
Appraisal: $450 to $650
A home appraisal determines if the home’s value equals the full amount that the buyer intends to borrow.
Survey: $350 to $500
The survey is performed to officially measure the properties boundaries and lines.
Credit Report: $20 to $50
The credit report is run by the bank lender and is used to verify that a borrower has built up a positive credit history.
Loan Payoff Fees: 1.5% of the sale price
Loan origination fees, prepaid interest, application fees, and assumption fees are grouped under loan payoff fees.
Mortgage Payoff/Prepayment Penalty: Varies
If you are paying off your mortgage early, you may have to pay a prepayment fee. Discuss your options with your lender.
Outstanding Amounts Owed on the Property: Varies
Homeowners insurance, HOA fees, utility bills, and property taxes that are owed on the property will need to be paid at closing.
Transfer Taxes: Varies
Transfer taxes are charged when a home transfers ownership and will vary depending on the local and state rates. In Oklahoma, the transfer tax, referred to as a documentary stamp, is $0.75 for every $500 of the final sales price.
Recording Fees: Varies
This fee is paid to the county to cover filing the property’s deed and update its records.
Settlement Fee: $2 per $1,000 of Final Sales Price
A settlement fee covers the services of the title agent who completes the transaction.
Other Home Selling Costs in Oklahoma
There are a number of costs associated with home sales that sellers should include in their budget. No seller wants to deal with unexpected costs, especially when it can be difficult to fund them later in the home sale. These costs can end up eating away at your profit or coming out of your pocket.
Sellers may need to pay for repairs and improvements to get a better sales price in the long run. It’s a good idea to have your home inspected prior to listing. Then discuss possible repairs with your agent to see if they’ll be worth the cost in the end.
Traditionally, sellers are also responsible for paying both the listing agent and the buyer’s agent realtor commission fees. The average cost of realtor commission fees in Oklahoma is 6% of the home’s sale price, split between the two agents. As the median sale price of homes in Oklahoma is $148,000, sellers can expect to spend $8,880 in realtor commission fees.
Who pays closing costs in Oklahoma?
While there are ways closing costs are traditionally split up, both parties may negotiate who pays what before signing their purchase agreement. Typically, sellers cover as much as 3% of a home’s sale price in closing costs, while sellers cover up to 6%
Typical Seller Closing Costs
Here’s a breakdown of the closing costs that sellers pay:
- Fees for Buyer’s Title Insurance Policy
- Outstanding Amounts Owed on the Property
- Transfer Taxes
- Recording Fees
- Mortgage Payment
- Prepayment Penalties*
- Attorney and Settlement Fees*
*Doesn’t apply to all home sales.
Typical Buyer Closing Costs
Home buyers cover the majority of closing costs and end up paying 6% at closing. Buyer closing costs are primarily made up of mortgage loan requirements. Here’s a list of closing costs that buyers can expect to pay for:
- Title Search
- Lender’s Title Insurance
- Loan Fees
- Home Appraisal
- Home Inspection
- Credit Report
- Settlement Fees*
- Home Survey*
- Attorney Fees*
Should you pay the buyer’s closing costs?
There are specific situations in which a seller might offer to pay some of the buyer’s closing costs. In a cool market a seller might make concessions to entice buyers who are looking to save or are on a budget.
Ultimately, it is up to the seller to determine whether they should pay the buyer’s closing costs. However, the decision shouldn’t be made lightly as closing costs and realtor commission fees add up and can take a serious hit to a seller’s profit margins. Your agent can advise you on the right choice for you.
Key Takeaways for Oklahoma Home Sellers
Oklahoma home sellers should be prepared to cover closing costs that average out to 3% of a home’s sale price. They should also budget an additional 6% of their home’s sale price for realtor commission fees. These costs will vary depending on the location of the home, its value, and whether the seller has offered to pay buyer closing costs.
Seek the advice of an experienced real estate agent, attorney, or tax advisor to get an accurate estimate of what you’ll pay in closing costs. A real estate agent will provide a net sheet that will outline these costs and detail the take-home profit.
While many closing costs are unavoidable, there are ways for sellers to save on closing day. Clever Real Estate partners sellers with top, flat-fee real estate agents. These full-service agents provide a deep discount that can save sellers up to 50% in realtor commission fees.