Home Buyers paying cash are often surprised that they pay closing costs in addition to the purchase price, so here is a guideline of what costs are incurred in the state of Oklahoma. The Seller pays a few less items when their Buyer is paying cash.
These prices will vary depending on sales price and title or closing company and include:
- Sales price less earnest money deposit
- Settlement or closing fee $300
- Title Exam $350
- Title insurance (one-time fee; a percentage of sales price)
- Final title report $250
- Shipping/Storage $35
- Buyer name check $35
- Preliminary report $75
- Recording fees $15
The home Seller is still responsible for bringing the abstract up to date, paying the title company’s closing fee, documentary stamps, a survey and any charges associated with paying off their mortgage (wire transfers, Fed-X fees).
Each party is responsible for paying their portion of the property taxes for that year, so if the taxes are $2,000 per year and the closing is on June 30th, each party will be responsible for $1,000.
Other expenses incurred by any Buyer – including a cash Buyer – are the cost of home inspections. Home inspections are not required, but are strongly encouraged.
Costs Incurred by Seller and Buyer on a Cash Real Estate Transaction
If there is a homeowner’s association or condo fee, that cost is also prorated and paid at the time of closing.
Typically funds are wired for closing, so the Buyer will want to obtain wiring instructions from the Closing Company 2-3 days prior to closing.
And don’t forget the utilities! Typically the Seller has utilities turned off the day of closing, and Buyers have them activated the day of closing.
Choose a Realtor who can explain closing costs to you, whether you are a cash Buyer or using some type of financing. No need for last-minute surprises at the closing table! 918-852-5036
Content written and published by Lori Cain.