Are you trying to budget for closing costs on a Tigard home and not sure where to start? You are not alone. Buyers and sellers often focus on the price and overlook the many smaller fees that show up at the finish line. In this guide, you will learn what closing costs include, who typically pays them in Tigard, how local Washington County details affect your bottom line, and smart ways to plan ahead. Let’s dive in.
Closing costs 101 in Tigard
Closing costs are the non-purchase-price expenses that make your transaction possible. They include lender fees, title and escrow services, government recording, insurance, interest, and prorated property taxes. Buyers and sellers each cover different parts, and local custom can shift who pays specific items.
For buyers, a common rule of thumb is 2 to 5 percent of the purchase price in closing costs, not including your down payment. For sellers, the largest cost is brokerage commission. Total seller costs often land around 6 to 10 percent of the sale price, mostly due to commissions, plus title, escrow, and prorations. Your exact numbers will depend on your contract terms, loan type, and local practices in the Portland metro.
Buyer closing costs in Tigard
Loan fees you may see
Lenders charge for processing and underwriting. Combined, these can run around 0.5 to 1.5 percent of the loan amount, though some lenders use flat fees. You may also see optional discount points if you choose to buy down your rate. Credit reports, flood certifications, and tax service checks are small line items that typically add tens of dollars each.
Appraisal and inspections
Most financed purchases require an appraisal, which often runs about 400 to 800 dollars depending on complexity. A general home inspection usually ranges from 300 to 600 dollars, with sewer scope, pest, or radon inspections as add-ons. You usually pay these at scheduling or before closing.
Title insurance, escrow, and recording
If you finance, a lender’s title policy is required. Cost typically scales with the loan amount, often about 0.2 to 0.6 percent. An owner’s title policy is a one-time premium based on the purchase price. In many Pacific Northwest deals the seller pays the owner’s policy, but custom varies by transaction. Escrow or settlement fees for coordinating the closing are often a few hundred dollars, sometimes split between buyer and seller. Washington County recording fees are generally modest and depend on the number and type of documents filed.
Prepaids and escrow reserves
Your lender will likely require you to prepay the first year of homeowner’s insurance or provide a paid binder. Expect prepaid interest from the date your loan funds through the end of that month. Lenders also often collect a few months of property tax and insurance reserves to start your escrow account. Property taxes are prorated at closing based on Washington County’s billing schedule and your closing date.
Other potential buyer costs
If the property is in an HOA or a condo building, budget for HOA transfer or disclosure document fees, commonly a few hundred dollars. If your down payment is under 20 percent on a conventional loan, private mortgage insurance may apply as an upfront or monthly charge. Surveys or specialized inspections can be required in certain cases.
Example buyer estimates
These examples are illustrative and include lender fees, title and escrow, appraisal, inspections, first-year insurance, and typical prepaids and reserves. Your numbers will vary by lender and title company.
- 450,000 dollar purchase price: about 9,000 to 22,500 dollars in closing costs
- 650,000 dollar purchase price: about 13,000 to 32,500 dollars in closing costs
- 900,000 dollar purchase price: about 18,000 to 45,000 dollars in closing costs
Seller closing costs in Tigard
Commissions and professional fees
Brokerage commissions are often the largest seller expense and commonly run around 5 to 6 percent of the sale price in many markets. That amount is typically split between the listing and buyer agents, and final terms are set in your listing agreement.
Title, escrow, and recording
In many Pacific Northwest transactions, sellers often pay the owner’s title policy, though this can vary by deal. Escrow or settlement fees might be split or assigned by custom. Recording fees for the deed and any releases are generally small compared with other costs.
Payoffs, taxes, and prorations
Your existing mortgage is paid off at closing, including interest through the payoff date. Property taxes are prorated per Washington County’s schedule. Any HOA dues, assessments, or liens must be cleared or negotiated before closing.
Concessions and repairs
You may negotiate credits toward the buyer’s closing costs, repair allowances, or escrow holdbacks. These reduce net proceeds and can shift based on market conditions in Tigard.
Example seller estimates
On a 650,000 dollar sale, a 5 to 6 percent commission equals about 32,500 to 39,000 dollars. Other seller costs, such as the owner’s title policy, escrow, and prorations, often add another 1 to 3 percent of the sale price. Your total will depend on concessions, payoff amounts, and the specific services used.
Local Tigard and Washington County factors
Recording and transfer tax
Washington County recording fees apply to deeds, trust deeds, and related documents, and are usually in the tens to low hundreds per document. Oregon does not have a statewide real estate transfer tax, and local transfer taxes are uncommon. Confirm any special district fees for your property with your title officer.
Property tax proration
Property taxes are prorated at closing based on the county billing cycle and your closing date. The proration can debit or credit you depending on timing. Your title and escrow team will calculate these amounts.
HOAs, condos, and lender review
Tigard includes neighborhoods with HOAs and several condominium communities. Expect HOA disclosure or estoppel fees. Lenders review an HOA’s financial health for many loans, which can affect approval and timing.
Local improvements and assessments
Local improvement district assessments for items like street or sewer upgrades can appear on title. These are handled at closing and may be paid off or assumed, based on your contract.
Market practice and negotiation
Who pays specific title or escrow fees can change with local custom and market conditions. In a competitive seller’s market, buyers may take on more costs. In a balanced or buyer-leaning market, seller concessions may be more common.
Timing and paperwork you should know
You will receive a Loan Estimate early in the loan process that outlines projected fees. At least three business days before closing, you will receive a Closing Disclosure that lists final costs. Use that review window to compare against your Loan Estimate and ask your lender and escrow officer to explain any changes.
You should review the preliminary title report for easements, liens, and exceptions, and resolve any issues before signing. Plan to wire funds to close per escrow instructions, and always verify wiring details by phone using a trusted number to avoid wire fraud.
Ways to plan, reduce, or offset costs
- Compare at least two lenders using standardized Loan Estimates. Even small fee or rate differences can add up.
- Ask your lender to model options with and without discount points so you can weigh short-term costs versus long-term interest savings.
- Time your closing date with prepaid interest in mind. Closing near month end can reduce the first month’s interest total.
- Request a preliminary title report early to surface liens, HOA assessments, or LID items that could impact your budget.
- If market conditions allow, negotiate seller credits toward buyer closing costs or a repair credit.
- Clarify who customarily pays the owner’s title policy and how escrow fees are split in Tigard so you can budget correctly.
Quick buyer checklist
- Get a detailed Loan Estimate from each lender you consider.
- Budget 2 to 5 percent of the price for closing costs, plus your down payment.
- Schedule appraisal and inspections early and plan for out-of-pocket timing.
- Confirm title insurance, escrow splits, and recording expectations with your agent and title officer.
- Verify HOA fees and required documents if applicable.
- Review the Closing Disclosure within the three-business-day window and ask questions immediately.
Quick seller checklist
- Review your net sheet with realistic commission, title, and escrow figures.
- Order the preliminary title report early to catch liens, judgments, or LID assessments.
- Gather HOA documents and budget for any required seller-side fees.
- Discuss potential concessions and repair strategies before listing.
- Track your mortgage payoff amount and any prepayment terms with your lender.
- Verify recording and proration details with your escrow officer.
What this means for your Tigard budget
Closing costs are predictable once you know the moving parts. Buyers should plan for several categories beyond the down payment, including lender fees, title and escrow, appraisal, inspections, insurance, and prepaids. Sellers should plan for commissions, an owner’s title policy if custom assigns it to the seller, escrow, payoffs, and prorations. The exact split can change with local practice and negotiation, which is why a local advisor matters.
If you want a clear, custom breakdown for your price point and neighborhood in Tigard, we are here to help you model scenarios and plan your next steps with confidence. Reach out to Ty Lankheet for a tailored closing cost estimate and a smart plan for your purchase or sale.
FAQs
What are typical buyer closing costs in Tigard?
- Buyers often pay 2 to 5 percent of the purchase price for closing costs, covering lender fees, title and escrow, appraisal, inspections, insurance, and prepaids.
Who usually pays the owner’s title policy in Tigard?
- In many Pacific Northwest transactions the seller pays the owner’s title policy, but this is a local custom that can vary and is negotiable.
Are there transfer taxes on Tigard home sales?
- Oregon does not have a statewide real estate transfer tax and local transfer taxes are uncommon, though you should confirm any special district fees with your title company.
How are property taxes handled at closing in Washington County?
- Taxes are prorated based on the county’s billing cycle and your closing date, which can result in a debit or credit to the buyer or seller.
What are common seller closing costs in Tigard?
- Sellers typically pay brokerage commissions, may pay for the owner’s title policy, share escrow fees by custom, and cover loan payoffs and tax prorations.
When do I get the final closing numbers?
- Lenders are required to deliver the Closing Disclosure at least three business days before closing, which lists the final fees and cash to close.
Can I ask the other party to cover some of my costs?
- Yes, concessions are negotiable and depend on market conditions; buyers can request credits and sellers can offer them as part of a broader deal strategy.
