• David Cade

Who pays the Buyer or the Seller for Closing Costs?


When it comes to who pays for closing costs in a real estate transaction, there will be closing costs that are unique to both buyer and seller. The buyer can incur costs that are equal to 3% to 6% of the sales price of the property. Each party is responsible for paying their own costs at closing. However, if the market is in the buyer’s or seller’s favor, it may determine if either party negotiates to pay some of the other’s fees and costs in order to make a deal.


Most of the buyer’s costs are associated with the loan. The costs incurred for a loan will be if there is a loan origination fee and any discount points paid to buy down the interest rate. Other costs may include those for an appraisal, HOA assessments, pro-rated insurance, and taxes.


The seller’s biggest closing cost liability is paying the real estate commission. Other fees would include paying title insurance, transfer taxes, and pro-rated property taxes.

In a buyer’s market, it may have been negotiated that the seller pays for some of the buyer’s closing costs, called seller concessions. In a seller’s market, a buyer may offer to pay for some of the seller’s closing cost liability, such as the title insurance or the home warranty plan. If a buyer does this, it increases the seller’s net proceeds and gives the buyer an advantage in a seller’s market.


Whether you are a buyer or seller, I can help you to anticipate closing costs. Call or email me today and we can go over your specific goals and circumstances. I am always here for you to provide guidance and help you navigate all aspects.

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