Does the Seller or Buyer Pay Closing Costs?

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Whether you’re buying or selling a home, it’s important to understand the process and costs involved. Aside from your moving truck or brand new mortgage, real estate transactions also involve closing costs. Learn more about whether you’re responsible for paying these closing costs and why they matter.

What Are Closing Costs?

Closing costs include all of the expenses and fees that must be paid on closing day. In most residential sales, closing costs equal between 3-6% of the home’s total purchase price. 

Local property taxes, insurance costs, and other factors all influence the total amount of closing costs assessed. Buyers are usually responsible for paying closing costs, but there are some instances that require sellers to contribute as well. 

The Buyer’s Closing Costs

Depending on the price of your new home, you may pay tens of thousands of dollars in closing costs. For example, the average closing costs for a $200,000 home range between $4,000 and $10,000. 

Consider the many closing cost factors that buyers must cover:

  • Attorney fees for the buyer, seller, or both
  • Credit report fees
  • Loan origination fees
  • Inspection and appraisal fees
  • Survey fees
  • Lender’s title insurance
  • Title search fees
  • Escrow deposits
  • Underwriting fees

The Seller’s Closing Costs

The seller isn’t completely off the hook, either. In addition to paying a commission to the buyer’s and seller’s real estate agents, sellers’ closing costs often include:

  • Title insurance premiums
  • Transfer taxes and recording fees
  • Home warranty premiums
  • Prorated taxes and HOA fees

For more help navigating the complexities of buying or selling a home, contact Benefit Title Services! Our experienced professionals are here to guide you from the initial sales contract through closing. Call us today at (855) 464-3227.