The Scoop on Closing Costs for Home Sellers in the Tulsa Metro Area

Selling your home is exciting, but don't let unexpected expenses catch you off guard. Picture this: you're at the closing table, ready to enjoy your profit, only to find that thousands of dollars are being deducted from your proceeds. These are your closing costs, and if you don't plan for them, they can significantly reduce your earnings.

In this post, we'll break down the costs that sellers typically incur, why they exist, and how to keep more of your money when selling your home in the Tulsa Metro area.

Understanding Closing Costs

Closing costs are the final expenses paid to complete the sale of your home. These costs cover everything from real estate commissions to title transfers and legal fees. On average, sellers pay between 6% to 10% of the home’s sale price in closing costs.

Understanding these costs ahead of time can help you budget effectively and avoid any last-minute surprises.

Common Closing Costs for Home Sellers in Tulsa

1. Real Estate Agent Fees

Real estate commissions remain a key expense for many sellers, but recent changes have made them more flexible and negotiable. Sellers are no longer required to cover the buyer’s agent commission, and all commission agreements must be clearly disclosed and agreed upon upfront.

How Much Do Commissions Cost?

Traditionally, commission rates ranged from 5% to 6% of the sale price. However, with the new rules, commission structures vary more widely and are subject to direct negotiation between sellers, buyers, and agents.

Who Pays the Commission?

• Sellers may still choose to pay the buyer’s agent commission, but it is no longer an industry standard.
• Some buyers may now be responsible for paying their own agent’s commission.
• Listing agents still charge a fee for marketing, negotiations, and transaction management, but the rate is now more customizable.

2. Transfer Taxes and Recording Fees

Transfer taxes are state and local fees for legally transferring ownership of your home.

• Cost: These fees can range from 0.5% to 2% of the sale price, depending on local regulations.
• Responsibility: In many situations, the seller covers this cost, but it can be negotiated for the buyer to share in these fees.

3. Title Insurance (Owner’s Policy)

Title insurance protects buyers from ownership disputes or legal claims on the property. Though buyers typically purchase their own policy, many sellers in Green County choose to pay for an owner’s title policy as part of the sale deal.

• Necessity: While not mandatory, it is often expected in a home sale.
• Cost: Usually 0.5% to 1% of the home’s sale price.

4. Escrow and Closing Fees

Escrow services handle funds and documents to ensure the transaction is secure. These fees also cover the paperwork involved in transferring ownership.

• Role:
• Hold funds in a secure account.
• Ensure all contract terms are met before money changes hands.
• Cost: Between $500 and $2,000, depending on your location and service provider.

5. Prorated Property Taxes

Since property taxes are typically paid annually, you'll need to pay your share of taxes up to the closing date.

• Calculation: The total property tax bill is divided based on the number of days you owned the home that year.
• Example: If property taxes are $6,000 per year and you sell halfway through the year, your share would be $3,000 in prorated taxes.

6. Homeowners Association (HOA) Fees

If your home is in an HOA, you may encounter extra fees at closing.

• Unpaid dues: Any outstanding HOA fees must be settled before closing.
• Transfer fees: Some HOAs charge a fee (ranging from $200 to $1,000) to process the ownership change.

7. Attorney Fees (If Required)

In Oklahoma, hiring a real estate attorney is not mandatory, but it can be beneficial to have legal expertise to review and finalize the sale.

• Cost: Typically $500 to $1,500.
• Role:
• Review contracts and closing documents.
• Ensure everything is legally sound.

Tips to Reduce Your Closing Costs

Closing costs can take a sizable chunk out of your home sale profits, but the good news is that there are ways to cut back on these expenses. Whether through negotiation, strategic choices, or finding cost-effective service providers, you have options to keep more money in your pocket. Here are some practical ways to lower your closing costs as a seller.

Ask the Buyer to Cover Some Costs

• In some deals, buyers agree to cover certain closing costs instead of negotiating a lower sale price.
• This works best in a seller’s market, where buyers compete for homes.

Shop Around for Service Providers

• Get multiple quotes for title insurance, escrow services, and attorneys.
• Some companies offer discounts for bundled services.

Preparing for Closing

As you approach the finish line of your home sale, there are still a few final steps to take before closing day. Proper preparation can help avoid last-minute surprises and ensure everything goes smoothly. Here’s what you need to do before handing over the keys.

1. Review the Closing Disclosure Early

• You’ll get a Closing Disclosure a few days before closing that lists all costs.
• Review it carefully to catch any unexpected charges.

2. Finalize Repairs and Paperwork

• Complete any agreed-upon repairs before closing.

Make sure liens, HOA fees, and taxes are paid to avoid delays.

Closing Thoughts

Selling a home in Green County is more than just finding a buyer. Closing costs can add up, but by knowing what to expect and planning ahead, you can maximize your profit and ensure a smooth sale process.