Home Buying Expenses

There are several expenses in the home buying process beyond just the price of the property. Here are average expenses you can expect to encounter on a $300,000 purchase.  The average home price in Portland is $438,500. The median price is $380,000.

Due at the time you write the offer, but REFUNDABLE if you back out of the contract based on valid contingencies: 

Earnest Money: 1- 5% of sales price. Earnest Money converts to your down payment at closing. 

Due Before Closing and NON-REFUNDABLE, whether or not you purchase the home. 

Inspection Costs: 

  • Home Inspection = $450 - $700 
  • Underground Tank Locate = $99 
  • Soil Testing (if an underground tank is known to be present) = $175 - $250 
  • Sewer Inspection = $100 
  • Radon Inspection = $150 - $200 
  • Lead Based Paint Inspection = $250 - $500

We generally advise buyers to have about $1000 - $1200 on hand for an average round of inspections.

There’s always the possibility that a buyer may want to do additional inspections such as a structural inspection, HVAC inspection, etc. based on the home inspector’s recommendations. 

Appraisal Fee: $450-$1000. The lender will usually collect this money up front and it is non-refundable after the appraisal has been completed. 

Not Due Until Signing and NON-REFUNDABLE

Heating oil reimbursement: 

If the home runs on oil, you will pay market price for the oil left in the tank. 

Mortgage and escrow costs: 

You should receive an estimate of these costs from your lender.

Closing costs (loan costs, escrow, and title fees) = $1500 - $5000 

Prepaid expenses for interest, taxes, insurance and reserve account for taxes and insurance = $1500 - $5000 (varies greatly depending on the property taxes and your selected insurance policy) 

Down Payment: 

Your Down Payment amount is completely dependent on your loan program. Usually a Down Payment will be between 3% - 20% of the purchase price. Earnest Money counts as a credit towards your down payment at closing.

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