Buyer or Seller: What Closing Costs Look Like for All

Closing costs

With all the excitement that comes from purchasing or selling your home, it can be easy to forget about all the additional fees that are added to your final cost. These closing costs are an assortment of fees that are associated with your home purchase and paid at the closing of the transaction or when the title of the property is transferred. They include the title search, home inspection, appraisal, credit report, attorney fees, and more. While both the buyer and seller have to pay closing costs, the amount and type tend to be a little different. Take a look from both perspectives, so you’re not surprised the next time you purchase or sell your home.


As a buyer, you’ve probably been so focused on saving for the down payment that you haven’t given much thought to saving for closing costs. As a good rule of thumb, the buyer can expect to pay 2%-5% of the purchase price in closing costs. For example, if your new home cost $200,000 you should plan on paying about $4,000-$10,000 in closing costs. Unfortunately, the buyer tends to pay most of the closing costs, which are usually paid as a one-time, out-of-pocket expense

Thankfully, after receiving your completed loan application your lender should provide you with a Loan Estimate which will include the amount for all the closing costs. This should help keep you from being caught off guard with the price once the final transaction happens. Plus, you can always comparison shop or negotiate to try and lower some of these fees. 

One important thing to note, some parts of the country do offer low-interest loan programs or grants to help first-time buyers with these costs. Be sure you’re looking into these to see if they apply to you.


With all the craziness that comes with selling your home, it can be easy to forget to factor in closing costs when calculating how much you’ll be making from the sale. While you aren’t paying as many fees as the buyer, you do have bigger fees to pay. Closing costs for the seller typically equal 6%-10% of the sale price. If we take that same $200,000 home, you should plan on paying about $12,000-$20,000.

The most significant closing cost that the seller covers are the commissions for both their own and the buyer’s real estate agents. These costs should be deducted from the amount you make on the home, which means you shouldn’t have to cover them out-of-pocket.

Another major possibility the seller might encounter with closing costs is that the buyer might ask them to pay their closing costs as well (which you can either agree to or renegotiate). The seller also has the option to offer to pay them when first selling their property to help sweeten the deal a bit. Doing this could cause your home to appear a bit more enticing, especially in a competitive market.

Buying or selling your home can be a scary yet exciting time. Make sure you have an experienced team on your side who not only understands the market but will work to negotiate the best price for you and your family. Contact Jessica & Sarah today to start your home buying, or selling, process.

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