Curious about closing costs in Oklahoma? When you sell your home, there are expenses—known as closing costs—that come into play before the sale is completed. These costs typically cover things like loan payoffs, property taxes, and other essential fees.
In this guide, we’ll walk you through the specific closing costs in Oklahoma, giving you a clearer picture of what to expect when you finalize the sale of your property.
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Disclaimer: This article provides estimates of a seller’s closing costs that are meant for educational and research purposes only; our calculations are not a guarantee.
What are closing costs?
When selling your home, closing costs represent a variety of fees paid during the final steps of the transaction. These expenses can include property taxes, insurance, and other standard charges for both homeowners and sellers. However, some fees—like transfer taxes—can fluctuate depending on where your home is located at the time of the sale.
Mortgage/Loan payoff amount
Before selling your home, you’ll need to address the loan payoff amount on your mortgage. This is the remaining balance due on your mortgage, which must be fully paid off before you can transfer ownership of your property. The payoff includes the outstanding principal balance and any interest that has accrued over the life of the loan.
In some cases, additional fees, such as late payments or prepayment penalties, may also be included in the loan payoff amount.
Property taxes
According to WalletHub, Oklahoma ranks 26th in the country in terms of property taxes, placing it above states like Oregon.
Real estate in Oklahoma is taxed at a rate of 0.85%, with a median home value in the state of $188,794. To get a better idea of what you might owe, consult a property tax calculator.
Reconveyance fee
After your home sale is finalized and your mortgage is fully paid off, you will typically be responsible for a reconveyance fee. This fee covers the cost of processing a reconveyance deed, which formally releases you from the mortgage debt. Your lender will need to record this deed, and the fee can vary based on your location, including your city, state, or county.
Realty transfer tax
You also might be responsible for what’s known as a realty transfer tax. These are fees assessed by local governments whenever a property changes ownership.
These taxes are sometimes called a “Deed Excise tax” or a “Documentary Stamp tax.” Who ultimately pays these taxes depends on the state, city, or county where the sale occurs.
In Oklahoma, for example, the seller typically pays the transfer tax. However, Oklahoma law allows for either the buyer or seller to pay the tax. As such, the terms of who owes what can be negotiated.
Real estate agent commission
Unless you’re selling your home for sale-by-owner, you’ll likely have used a local agent. Research indicates that an agent’s expertise can significantly impact your sale: In 2023, homes sold with an agent’s assistance had a median price of $405,000, compared to $310,000 for FSBO sellers.
Working with a real estate agent means paying a commission. This fee covers various services, such as accurately pricing your home, marketing it effectively, and negotiating with buyers to ensure you receive the best possible price and terms.
It should be noted, however, that on March 15, 2024, the National Association of Realtors (NAR) announced a landmark lawsuit settlement that will change the way real estate agent commissions are handled in the future. These changes will “decouple” seller and buyer agent compensation. Industry experts predict that this decoupling will likely lower agent fees and give buyers the ability to negotiate commission amounts directly. Learn more.
HomeLight’s transaction data reveals that the national average real estate agent commission is 5.8% of the property sales price. This commission typically includes fees for both the listing and buyer’s agents, with sellers customarily covering the cost.
Use HomeLight’s commission calculator by entering your city for commission data tailored to your specific area.
Attorney Fees
Some states require an attorney to be present when closing the sale of a property.
Oklahoma requires a real estate attorney during the title examination but not necessarily during closing. Since title examination is one aspect of the overall closing process, it’s up to you whether you want to hire an attorney for other aspects of the sale.
Homeowners Association/Condo Fees
One of the biggest sticking points for sellers is the fees levied by their homeowners’ association (HOA) or condominium association fees.
Like other fees we’ve discussed, these will vary, not just because of the different rules and regulations of your local HOA but also because HOA regulations vary greatly depending on the state. These fees (or dues) are usually prorated at the time of the sale.
The average monthly HOA fee in Oklahoma is $392.
Seller’s concessions
In Oklahoma, sellers may need to cover certain costs at closing due to financing concessions agreed upon during negotiations. These concessions can include payments for closing costs, repairs, or home warranties. One of the more common seller concessions is repair credits, which may be offered when the buyer has a contingency related to the home inspection.
If the seller does not address the repairs identified during the inspection, the buyer could back out of the deal while keeping their earnest money. To avoid this, sellers sometimes offer repair credits—money provided at closing to cover the cost of necessary repairs. However, these concessions are less common in a strong seller’s market since contingencies can discourage potential buyers.
Miscellaneous closing costs/fees
These are some of the most common closing costs you may encounter as a seller in Oklahoma. However, many of these costs are open to negotiation. Your buyer might agree to share some of the expenses, or a real estate agent or attorney could help you secure a more favorable deal.
If you want to minimize your closing costs without complicating the sale, HomeLight can connect you with a top local agent to guide you through the process.
Alternatively, if you’d rather skip the complexities of agent negotiations and closing costs, consider HomeLight’s Simple Sale program. We make selling your home straightforward with just three steps. Provide some details about your home, speak with one of our Home Consultants, and you could sell your property in as little as 10 days.
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