Who Pays Closing Costs on a Cash Sale in Portland?
You’ve decided it’s time to sell your home in Portland. That’s great! No matter the reason — moving out of state, getting a divorce, or something else — it’s important to enter into the house selling process with a clear understanding of the fees you will be expected to pay.
You might already know a few of the benefits to choosing to work with a real estate investor who will pay cash for your home, like inspection waivers, faster closing, and less risk of the deal falling through. But do you know who pays the closing fees for a home’s cash sale?
In today’s blog post, we’ll take a look into some of the common fees associated with closing on a house in Portland, how they compare to closing costs for a cash sale on a house, plus what fees you can expect to pay as the seller.
What is “closing” a house?
“Closing” on a house refers to the final step when selling your home. It’s the date when the ownership of the home is officially transferred from the seller to the buyer. There are a few things that happen during closing:
- The seller hands the keys, garage door remotes, alarm codes, etc. over to the buyer
- The seller signs the house title over to the buyer, transferring ownership from the seller to the buyer
- Funds are transferred from escrow are paid via certified cashier’s check
- The buyer and seller pay their closing costs
- The buyer signs mortgage and sale documents
Once these steps are complete, the ownership of the home has officially been transferred from the seller to the buyer.
What is a cash buyer?
A cash buyer refers to someone who doesn’t need to secure mortgage financing to buy your home. This usually means a few things for the seller:
- There’s less risk of the sale falling through because the buyer already has the money to purchase the house
- Inspections may be waived
- Fewer to no repair requests
- You might not have to list your house at all
A faster closing process — a cash buyer can close within days, while a traditional sale, on average, takes 43 days.
What are traditional closing costs for a house?
We’ve reviewed the process of closing a house — now let’s take a more detailed look into the costs of closing on a house in Portland. Closing fees are paid out to a variety of different entities, from the agents you work with to the local government.
Closing costs for a traditional house sale include:
- Agent commission, if working with a real estate agent
- Transfer tax. also referred to as a “deed tax,” is charged by state or local municipalities any time the deed for a house is transferred from one person to another
- Title insurance protects buyers and lenders from financial loss due to a bad title (where back taxes are owed or property ownership is disputed, for example)
- Prorated property taxes
- Credits towards closing costs
- HOA fees
- Escrow fees
Typically, the buyer pays the majority of the closing fees. This usually costs about 6% of the total price of the house. That said, the seller should still plan to pay their part of the local taxes and utilities at minimum, plus the cost of any previously agreed upon repairs.
What are closing costs for a cash sale?
The closing costs for a cash sale are similar, but not identical, to closing costs of a traditional house sale. They include:
- Escrow fees
- Transfer tax
- Title insurance
- Any HOA fees
- The cost of any prorated property taxes and utility bills
Who pays the closing costs in a cash sale?
A trusted cash buyer will pay the closing costs in a cash sale.
If I’m selling my home to a cash buyer, will I need to pay closing fees?
When you work with Columbia Redevelopment, you will never have to pay any closing fees. This includes costs for title insurance, HOA fees, or prorated utility bills. We’ll take care of it.
When working with other cash buyers, closing fees may still apply to you as the seller. Always make sure to ask the buyer which fees they are expecting to pay vs. which fees you should expect to pay. Review other questions to ask before selling to a cash buyer here.
Even more benefits of selling for cash with Columbia Redevelopment
You already know you’ll pay less in closing fees if you opt for a cash sale on your home rather than a traditional real estate sale. What other benefits are there? We’re glad you asked! When you sell to Columbia Redevelopment, you can count on the following benefits:
- We’ll make a cash offer within 24 hours of visiting your home
- $10,000 earnest money deposit
- Fast sale — we can close within 2-3 days
- No commission fees
- No repairs necessary
- No cleaning needed
- Fast and flexible closing timeline
We make selling your home easy
Since 2008, we’ve worked with hundreds of Portland-area homeowners to buy their homes for cash. If you’re worried about selling your home for any reason, rest assured that we will buy your home as-is, with no inspections and no extra fees.