Oklahoma: Cost of Selling a Home

Selling a home in Oklahoma – the land of wide-open spaces, amazing sunsets, and tornado warnings – can feel like a lot of work. Sure, you’re looking forward to a new chapter, but the road to selling your home can sometimes be a little bumpy. Whether you’re selling in Tulsa, Oklahoma City, or the great rural stretches in between, you’ll want to know what costs to expect before you put that "For Sale" sign out front. Spoiler alert: it’s not just about hiring a moving truck and putting on a fresh coat of paint.

The Basic Costs of Selling a Home in Oklahoma

The cost of selling a home in Oklahoma involves more than just signing a contract and packing up your knick-knacks. You’ll have to account for several factors that impact your final paycheck once you hand over the keys. Let's break it down, cowboy-style.

1. Real Estate Agent Commissions

In Oklahoma, as with most states, the cost of selling a home usually includes real estate agent commissions. Typically, the seller covers the commission fee, which can range from 5% to 6% of the sale price. That’s not pocket change – so don’t be shocked when you see those numbers. In Oklahoma, the commission is often split between the buyer’s and seller’s agents.

If you're selling a $250,000 home, this commission could run you up to $15,000. Ouch. But don't worry, this is pretty standard, and having a knowledgeable agent by your side can help you navigate the market more effectively and get a higher sale price in the end.

2. Home Repairs and Upgrades

Let’s be honest: Your home might need some TLC before hitting the market. A fresh coat of paint, fixing leaky faucets, or addressing the mystery smell in the basement are all common repairs that can help your home sell faster and for a better price. In Oklahoma, homes in great condition will typically attract higher offers, so a few repairs can be a worthy investment.

It’s also worth considering staging your home, which can range from a few hundred to a few thousand dollars depending on your needs. If you're worried about it, your real estate agent might help you assess what needs sprucing up before you list your property.

3. Closing Costs

Oklahoma's closing costs are relatively straightforward but can vary depending on your agreement with the buyer. Closing costs for sellers often include things like:

• Title insurance: Protects the buyer against potential title disputes. In Oklahoma, the seller often pays for this.

• Repairs requested by the buyer: Negotiations may result in the buyer asking for certain repairs to be made, or you may need to offer a credit toward repairs.

• Transfer taxes: Also known as documentary stamp taxes, these can cost around $0.75 per $100 of the sale price.

In total, closing costs in Oklahoma might run you anywhere from 1% to 3% of the sale price. On a $250,000 home, expect to pay about $2,500 to $7,500 in closing costs, depending on negotiations and specifics of the deal.

4. Mortgage Payoff

If you still owe money on your mortgage, you’ll need to pay off that remaining balance when the sale goes through. And don’t forget, if you have a home equity loan or lines of credit, those will need to be settled as well before you can walk away with your profit.

For example, if you owe $100,000 on your mortgage and sell your house for $250,000, your mortgage payoff will be subtracted from your sale price before the remaining funds are handed to you. This is an essential step in the selling process, so make sure your mortgage lender provides a payoff statement prior to closing.

5. Capital Gains Tax

Now, let’s talk about taxes. If you made a profit from selling your home, the IRS might want a cut. However, most people in Oklahoma don’t have to worry about this, especially if the home is your primary residence.

The capital gains tax exemption allows you to exclude up to $250,000 of profit ($500,000 for married couples filing jointly) from tax, as long as you’ve lived in the home for at least two of the last five years. But if you’re selling an investment property or you don’t meet the primary residence exemption, you could be on the hook for paying taxes on your profit. Always consult a tax professional to make sure you're not hit with unexpected tax bills after selling.

6. Moving Costs

Sure, this one seems obvious, but it’s easy to forget about when you’re in the thick of negotiations. Moving costs can vary widely depending on whether you’re just hiring a truck or bringing in professional movers to haul your possessions across Oklahoma. Expect to pay between $200 to $2,000+, depending on how far you’re moving and how much stuff you’ve accumulated over the years.

Pro tip: If you’re moving out of state, you might want to look into tax benefits in your new location – who knew moving could come with perks?

Extra Costs You Might Not Expect

While we’ve covered the most common expenses, there are a few additional costs that could sneak up on you during the selling process. For instance:

• Homeowners Association (HOA) Fees: If your home is in an HOA neighborhood, you may need to pay for prorated fees or any unpaid dues.

• Home Inspection and Appraisal Fees: While these are generally the buyer's responsibility, you may need to pay for repairs requested after the inspection. Some buyers will ask for an appraisal, which could cost up to $500.

• Cleaning Costs: You might need a deep cleaning service before showing your home to potential buyers. Expect to pay anywhere from $150 to $400 for professional cleaning.