What Are Closing Costs—and Who Pays Them?

When you're buying or selling a home, everyone talks about price. But one of the most overlooked (and misunderstood) parts of the deal is closing costs.

So what exactly are they, how much should you expect to pay, and who’s responsible for what?

Let’s break it down.

🧾 What Are Closing Costs?

Closing costs are the fees and expenses due at the end of a real estate transaction. They’re separate from your down payment or the net proceeds you’ll receive.

They typically cover:

• Title and escrow fees

• Appraisal and inspection fees

• Loan origination charges

• Government recording and transfer taxes

• Prepaid taxes and homeowners insurance

• Realtor commissions (for sellers)

💰 How Much Are Closing Costs?

For buyers:
You can expect closing costs to be around 2–5% of the purchase price.
Example: On a $300,000 home, that’s roughly $6,000–$15,000.

For sellers:
The biggest chunk of seller costs usually comes from agent commissions (often 5–6% total), plus title, transfer taxes, and prorated property taxes. Expect around 6–8% of the sale price.

🤝 Who Pays What?

While buyers typically pay for:

• Appraisal

• Loan fees

• Title insurance (depending on location)

• Prepaid taxes and insurance

Sellers usually cover:

• Agent commissions

• Transfer taxes

• Title costs (sometimes split)

💡 Everything’s negotiable—and local customs vary.

📌 Bonus Tip: Ask for Credits

Buyers can often negotiate seller credits to offset closing costs—especially if the home needs repairs or has been on the market a while. Sellers might offer credits to help the deal move forward quickly.

📞 Want to see how much you’d owe (or net) on your sale or purchase? Book a personalized estimate with me.

Final Thoughts:

Understanding closing costs helps you avoid surprises—and make smarter financial decisions. Whether you're buying or selling, it's one of those “small print” details that really adds up.

Have questions about how much you'll need at closing—or how to reduce it?
👉 Let’s run the numbers together. Book your call here.