Understanding Closing Costs: What Buyers & Sellers Should Know

Whether you're buying your first home or selling one you’ve outgrown, closing costs can feel like the fine print of a real estate transaction - but they don’t have to be a mystery.

If you're navigating the real estate market in Medford or anywhere in the Rogue Valley, here’s a breakdown of what closing costs actually are, who pays what, and how to prepare - without the stress.

What Are Closing Costs?

Closing costs are the fees and expenses paid at the end of a real estate transaction, above and beyond the price of the home. Think of it like the final step in sealing the deal.

They typically include:

• Escrow fees
  

• Title insurance
  

• Lender fees (if you’re financing)
  

• Appraisal and inspection costs
  

• Recording fees
  

• Transfer taxes (if applicable)
  

• Prepaid taxes, insurance, or HOA dues
  

In general, closing costs run 2% to 5% of the home’s purchase price - but they can vary depending on the property, the contract, and even the lender.

What Buyers Should Expect

In the Rogue Valley market, buyers typically cover:

• Loan related fees – Origination, underwriting, credit report
  

• Appraisal & home inspection – appraisal usually required by the lender, inspection is recommended
  

• Escrow & title fees – Sometimes split with the seller
  

• Prepaid expenses – Property taxes, homeowners insurance, and HOA dues
  

• Recording fees – To officially document your ownership with the county
  

Pro tip: Some loan programs (like VA or USDA loans) limit what you can be charged and in some cases, you can even negotiate for the seller to cover part of your costs.

What Sellers Typically Pay

Sellers often cover:

• Real estate agent commissions – Usually 5 to 6% total, split between buyer & seller agents
  

• Escrow and title fees – Can be shared with the buyer
  

• Outstanding liens or taxes – These need to be paid off at closing
  

• Seller concessions (if agreed upon) – Helping the buyer with their closing costs
  

• HOA transfer fees, if applicable
  

In Medford and surrounding areas, it’s common for sellers to negotiate who pays for what, depending on the offer - and a strong local agent can help you navigate this strategically.

Who Pays for What? It’s Negotiable!

The good news: most closing costs are negotiable - especially in shifting markets like ours.

Buyers may ask for seller concessions. Sellers may agree to cover certain fees to sweeten the deal. The key is understanding the costs before you get to the closing table, so you can make informed decisions when offers start coming in.

Pro Tips to Be Prepared

Buyers:
- Get a loan estimate early on! Your lender is required to give you one
- Budget beyond your down payment for closing costs
- Ask your agent if closing cost assistance is common in your price point

Sellers:
- Review your estimated net sheet early
- Know your local custom, some costs vary by county
- Factor in all closing expenses when pricing your home

Let’s Make Closing Feel Simple

At Rutledge Property Group, we guide our clients through every part of the process - including the fine print. From initial conversations to closing day, we make sure you’re never caught off guard by fees or forms.

Thinking of buying or selling a home in the Medford or Rogue Valley area?
Let’s chat. We’d love to help you close with confidence!