Who Pays Closing Costs When Buying a House?

Doesn’t the seller always pay the buyer’s closing costs?

The best answer is, “it depends.” I usually prepare my sellers that most buyers will at least ask. If they write an otherwise clean offer, it may be worth it to the sellers to pay them. But remember, the sellers are also paying the commission for both sides. When you add in another 3-6% in closing costs, that can be substantial money. And the sellers have some closing costs of their own to pay as well.

If the buyers do not have the money and the sellers will not pay, the only other option may be to finance the closing costs over the life of the loan. The closing costs get added on top of what the buyers are offering for the home and the seller still “pays” them. Then the home has to appraise for that extra value that has been added. In a market where values are raising weekly, this can be a real challenge! Trust your agent when they advise you on the best way to structure your offer. Making a low offer and asking a seller to pay your closing costs is probably not a good idea unless the home is obviously overpriced. Real estate is a dance.