Here are the basics about closing costs and who pays for what.
The other day I ran into a seller client, and she was upset about having to pay closing costs. She thought only buyers paid closing costs, but ‘closing costs’ is a generic term referring to all the fees due at or around closing, so both buyers and sellers have to pay them.
Some closing costs, like escrow and title fees, are shared, meaning the buyer pays half and the seller pays half. Other closing costs are exclusive to each party. For example, buyers pay for home inspections and appraisal fees, and sellers commonly pay for homeowners warranties and agent commissions. In a different kind of market, buyers may ask sellers to pay for their closing costs or a portion of them. However, that’s not happening in our current hot seller’s market.
This was just a quick message about general closing costs, so if you have specific questions about this or anything else real estate-related, please feel free to reach out to me via phone or email. I would love to help you.
