Close

See current mortgage rates on Zillow Mortgage Marketplace

Profile picture for djmkcm12

Most of the time, who pays for closing costs? The buyer or the seller

  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
February 08 2011 - Shadyside
We think we've answered this question for you!
  • Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.
 
 

Answers (15)

It is dependent on the loan program you are utilizing! Some programs allow for up to a 6% "seller contribution" or "seller concession" which means the seller can allocate 6% of the funds from the sale of the home to go towards your closing costs.....IE: 100K purchase price would result in $6K going towards your closing costs! These funds do not buy down the purchase price of the home but go towards things such as transfer tax, escrow reserves, lenders fees, title fees, and anything not associated with the actual purchase price of the home!
That said ALL loan programs except USDA and VA require seller down payment which can be as little as 3.5%. You must bring this to closing but it will be totaled from the earnest money put towards the purchase agreement and the remainder can be gifted to you, from a retirement account, the proceeds from the sale of another home, or your own personal account! So in using the above example of 100K agreed purchase price your "skin in the game" so to speak would at minimum be $3,500.00. Something else to keep in mind though is the fact that the 6% could potentially not cover all of the costs associated with the purchase of a home so it is always good to have more than the bare minimum down payment in reserves to cover unexpected costs associated with the closing....this would only apply to things like when I bought my home a 12 mo prepaid school tax which the seller got back that I had to pay which was an unexpected legal expense! This kind of thing happens here in PA with the townships, boroughs, counties, state taxes and tweaks....

So ultimately the buyer can "contribute" or provide "concessions" towards the closing costs but ultimately they are on the buyer! I hope this helps!
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
March 29 2012
State laws can dictate - Here in Wisconsin transfer of title is typically paid by the seller, however not required therefore it has to be disclosed as a borrower expense.  Since 1977 I have never seen a borrower pay for a seller title transfer.  Expect as a buyer to pay for most of the fees, unless negotiated otherwise in your  contract.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
April 21 2011
There are some charges the buyer takes care of, some the seller takes care of and transfer tax which is usually split between the two.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
April 14 2011
The buyer always,always,always pays!
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
February 08 2011
You see what I mean about Spin!
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
February 08 2011
There are closing costs traditionally paid for by the buyer, closing costs paid for by the seller, and closing costs that are split between both parties.  The transfer tax in PA, for example, is typically split by both parties.  What I have seen over the past twenty 25 years is that, when the real estate market is very strong, when it is a seller's market, the buyer is less likely to have any of his closing costs paid by the seller. When the market is more of a buyer's market, the sellers are more flexible, and more likely to negotiate the payment of closing costs.  Also, if the home is priced in a very active first time buyers price range, the buyers are more likely to ask the seller to pay closing costs just out of necessity.  I would advise you to really discuss this with your agent.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
February 08 2011
Profile picture for wetdawgs
Although at closing, some costs are on the buyer's plate and some on the seller's plate - in the long run, it all paid by the buyer.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
February 08 2011
you can contact a title company to ask for the specific split of costs and how they typicaly break down (it varies by state) but you can often ask as the buyer to have the seller pay a specific dollar amount of the buyer's cost.  doesn't mean they will and there are restrictions on how much they can pay when a loan is involved.  they buyer typically has more closing costs than the seller.  I hestiate to list the differences because it's different here than it is there- we have abstracting fees in oklahoma that the seller typically pays- those fees likely don't exist in your state.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
February 08 2011
Everything is Negotiable
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
February 08 2011

It never really comes from the seller!

Closing costs are paid:

1. By the buyer
2. By the buyer through a higher sales price and seller concessions
3. by the buyer through a higher rate and the lender picks up the costs

Sellers have costs associated with selling that they take care off from the proceeds or cash they need to bring to closing.

  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
February 08 2011
Here in Pittsburgh often the buyer pays thier closing costs. Many agents just don't ask for it or ask for enough. But I make it a point to try and get this from the seller when possible. It is all in how you write the offer.
Benny Smith [Phone number deleted by moderator]
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
February 08 2011

Closing/settlement costs vary depending on the area, type of financing, etc. and there are cost that are to be paid by the Seller and the Buyer.  It is very common for the Buyer to roll part (or in some cases all) of the closing costs into the sale price and have Seller pay them.  There are even some mortgage loans where the lender will reduce the closing costs by increasing the interest rate and another type of loan whereby the Buyer may obtain a grant/loan to pay a portion of the closing costs.  It is not unheard of that by contractual agreement the Buyer may actually pay some of the costs that are customarily considered to be Seller costs.  As long as it is legal, disclosed in writing and the lender (if any) permit it payment of closing and Settlement costs may be negotiated between Seller and Buyer.

  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
February 08 2011
Experience has shown that, most of the time, the homebuyer pays for the closing costs related to their side of the transaction.
When a home buyer is cash challenged or would like to preserve some of their cash for incidentle expenses after moving into their new home, They can negotiate with the seller to help offset some of the closing costs associated with their purchase. (this is termed "seller assist" in the real estate industry)
Lender guidelines will sometimes impact how much cash the seller can contribute toward the buyer's closing costs.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
February 08 2011
Sorry Sunny but The buyer always pays!  Even when the seller makes a concession the buyer ends up financing a larger amount.  If the seller was not paying closing costs they would accept a lower purchase price.

Bottom line is the buyer will either pay the closing costs or they will finance the closing costs any other answer is really spin.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
February 08 2011
Profile picture for sunnyview
Usually, both sides pay their own closing costs, but some times the seller will offer to pay some of the buyers closing costs too as an incentive to purchase.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
February 08 2011
 
Related Questions
Most of the time, who pays for closing costs? The buyer or the seller
Profile picture for Seth Robbins
Latest answer by Seth Robbins
March 29 2012 | 15 answers
  • Asked by djmkcm12
  • In Mortgage
  • February 08 2011
Mortgage Rates
 
Be A Good Neighbor

Zillow Advice depends on each member to keep it a safe, fun, and positive place. If you see abuse, flag it. More on our Good Neighbor Policy.

Homes for Sale
  1. 266 Emerson St, Pittsburgh, PA Home For Sale
    266 Emerson St, Pittsburgh, PA 15206

     For Sale: $309,900

    • Beds: 2
    • Sqft: 1304
    • Baths: 1.5
    • Lot: 2613
  2. 724 Maryland Ave, Pittsburgh, PA Home For Sale
    724 Maryland Ave, Pittsburgh, PA 15232

     For Sale: $449,900

    • Beds: 5
    • Sqft: 3144
    • Baths: 2.5
    • Lot: 5400
  3. 5808 Elmer St, Pittsburgh, PA Home For Sale
    5808 Elmer St, Pittsburgh, PA 15232

     For Sale: $575,000

    • Beds: 4
    • Sqft: 2457
    • Baths: 3.5
    • Lot: 2340