Who Pays Closing Costs In Highland?

Who actually pays what at closing can feel confusing, especially when every friend has a different story. If you are buying or selling in Highland in Marion County, you want a clear view of the line items and how they are typically split. This guide breaks down who usually pays which fees, what is negotiable, and how to plan your budget with confidence. Let’s dive in.

Closing costs in Highland

In Oregon, there is no single rule for who pays closing costs. Allocation follows local custom and, most importantly, your purchase agreement. In Highland and across Marion County, buyers typically cover lender-related fees while sellers usually cover broker commissions and often the owner’s title policy. Many other charges are negotiable or split.

Your exact numbers depend on your loan program, the market, and your contract. Always request written estimates from your lender and the local title/escrow company early in the process.

Who usually pays what

Seller-leaning costs

• Real estate broker commission: Typically paid by the seller in traditional Oregon listings.
• Owner’s title insurance policy: Often a seller expense, though it is negotiable.
• Seller-side prorations: Property taxes through the closing date and unpaid HOA assessments are usually the seller’s responsibility, per the contract and statute.

Buyer-leaning costs

• Loan origination and points: Generally paid by the buyer. These can sometimes be offset by a seller credit.
• Appraisal and credit/underwriting fees: Commonly buyer expenses.
• Lender’s title policy: Typically paid by the buyer because it protects the lender.
• Mortgage recording fees and escrow reserves: Usually buyer costs when a lender is involved.

Title and escrow fees

Title search, escrow, and settlement charges may be split, paid by one party, or divided 50/50 based on local custom and your contract. Practices vary by title/escrow office. Ask the local title/escrow company for a Closing Cost Estimate and to confirm how they typically allocate fees in Highland.

County fees and taxes

• Recording fees: Marion County charges for recording deeds and mortgages. Buyers usually pay to record the mortgage. The deed recording fee can be paid by either party by agreement. Confirm current per-document fees with the Marion County Recorder.
• Transfer tax: Oregon does not have a statewide real estate transfer tax. Most counties and cities do not impose one. Verify with Marion County whether any local transfer or documentary tax applies for your transaction.

Prorations and prepaids

• Property taxes and HOA dues: Prorated at closing. The seller pays for the period they owned the property through the closing date.
• Utilities and final bills: Adjusted per contract.
• Prepaids and impounds: Buyers often prepay the first months of homeowner’s insurance, daily interest, and initial escrow reserves if required by the lender.

How much to budget

• Buyers: A common range for buyer closing costs is about 2% to 5% of the purchase price, excluding the down payment. Your loan type and rate choices can raise or lower this number.
• Sellers: Expect to pay broker commission, commonly around 5% to 6% of the sale price split between brokers, plus seller-side closing costs such as the owner’s title policy if customary, prorations, and any agreed concessions.

Title/escrow fees and county recording charges are usually modest relative to commissions and loan costs, but the only accurate totals will come from local quotes.

Credits, concessions, and buydowns

Seller credits are common in Highland to help buyers with closing cash needs. You can structure them as a flat dollar amount or a percentage toward buyer closing costs. Some buyers choose a higher sale price paired with a seller credit to keep cash to close manageable. Discuss appraisal and tax implications with your agent and lender.

Loan programs set firm caps on how much a seller can contribute. Conventional loans vary by down payment percentage. FHA commonly allows up to 6% of the purchase price for certain closing costs and concessions, subject to current rules. VA, USDA, and other programs have their own limits. The credit must be written into the purchase agreement and approved by the lender, then reflected on the Closing Disclosure.

Sellers may also pay to buy down a buyer’s interest rate, either temporarily or permanently. This can improve affordability for the buyer and support the seller’s pricing goals, within program limits.

Steps to get accurate numbers

1. Ask your lender for a Loan Estimate (LE): This shows lender fees, rate options, and projected closing costs. You receive it early after application.
2. Request a Closing Cost Estimate from title/escrow: Local offices serving Highland can show expected title premiums, escrow fees, and how they allocate charges.
3. Get a seller net sheet: Sellers should ask their listing agent or title company for a net sheet outlining commission, owner’s title policy if customary, prorations, and estimated proceeds.
4. Confirm Marion County recording fees: Check with the Marion County Recorder for current per-document fees and requirements.
5. Verify seller concession limits with your lender: Ensure any agreed credits or buydowns fit program rules.
6. Review the Closing Disclosure (CD): You receive it at least three business days before closing. Confirm fees, credits, and cash to close.

Quick buyer checklist

• Get preapproved and review your Loan Estimate.
• Ask title/escrow for a written fee quote and typical allocations in Highland.
• Confirm seller credit limits for your loan program.
• Plan for prepaids like insurance and interest.
• Review your Closing Disclosure carefully before signing.

Quick seller checklist

• Request a net sheet showing commission, title policy if customary, prorations, and likely proceeds.
• Decide if you want to offer credits or a rate buydown to attract buyers.
• Verify how title/escrow will split settlement fees.
• Keep repair agreements and any escrow holdbacks in writing and lender-approved.
• Review the final settlement statement for accuracy.

Market conditions and negotiation

In a competitive seller’s market, buyers may cover a larger share of costs to win the deal. In a buyer’s market, sellers often agree to credits or buydowns to help buyers close. Either way, the purchase agreement controls the final split. Your best move is to negotiate early and document credits clearly so your lender and title/escrow can approve and disclose everything on time.

Put a local pro to work

Closing costs should never be a surprise. With clear estimates and smart negotiation, you can structure a Highland sale that supports your price and timeline while staying within program rules and local custom. If you want a strategic plan to maximize your net proceeds or to structure buyer credits without derailing the appraisal, connect with Heather Rauh for a collaborative, data-informed game plan.

FAQs

Who pays title insurance policies in Highland?

• The owner’s policy is often paid by the seller and the lender’s policy is typically paid by the buyer, but both are negotiable and should be confirmed in your contract.

How are Marion County recording fees handled?

• Buyers usually pay to record the mortgage, and deed recording fees can be paid by either party by agreement; confirm the exact per-document amounts with the Marion County Recorder.

What closing cost range should a Highland buyer expect?

• A common buyer range is about 2% to 5% of the purchase price, excluding the down payment, with the exact total driven by your loan program and rate choices.

Can a Highland seller pay a buyer’s closing costs?

• Yes, seller credits are common and must be written into the contract, but loan programs cap how much a seller can contribute and your lender must approve the credit.

Are there transfer taxes on Highland home sales?

• Oregon has no statewide real estate transfer tax and most localities do not impose one; verify with Marion County if any local transfer or documentary tax applies.

When do I see my final closing costs?

• Buyers receive a Closing Disclosure at least three business days before closing that shows final fees, credits, and cash to close; review it carefully with your lender and agent.