Who Pays Closing Costs — Buyer or Seller? (2026 Guide)
Closing Costs → Who Pays?

Who Pays Closing Costs —
Buyer or Seller?

Both parties pay — but for completely different things. Here’s exactly who owes what, and what you can negotiate.

Guide: 1. Overview › 2. Buyer Costs › 3. Who Pays? › 4. Seller Costs › 5. By State

The Short Answer

Both buyers and sellers pay closing costs — but they’re responsible for very different items. Buyers cover mortgage-related fees; sellers mainly pay agent commissions and transfer costs.

Buyer Pays
2–5%
of purchase price
  • · Loan origination fee
  • · Appraisal & inspection
  • · Lender’s title insurance
  • · Prepaid insurance & taxes
  • · Recording fees
VS
Seller Pays
6–10%
of sale price
  • · Agent commissions (5–6%)
  • · Transfer taxes
  • · Owner’s title insurance
  • · Mortgage payoff
  • · HOA transfer fees

Common Scenarios

🏠
Buyer pays all their own closing costs
Most common in competitive markets

On a $400,000 home with 20% down, the buyer brings $10,000–$18,000 to closing on top of the $80,000 down payment. The seller pays commissions and transfer costs separately.

💰
Seller pays buyer’s closing costs (concession)
Common in buyer’s markets or slow-moving listings

The seller agrees to credit $8,000–$12,000 toward the buyer’s fees at closing. The purchase price may be increased slightly to offset this — your lender (Rocket Mortgage, Chase, LoanDepot) adjusts the loan accordingly.

🤝
Costs are split through negotiation
Flexible — anything goes as long as it fits loan guidelines

In many transactions, specific items are negotiated. The seller might cover the escrow fee and owner’s title insurance while the buyer handles lender fees. Bank of America and Wells Fargo both accept seller concessions up to 9% on conventional loans with sufficient down payment.

What Can You Actually Negotiate?

Fee Negotiability Guide

Not all closing costs are created equal. Here’s what you can push back on:

Loan origination fee
✓ Often negotiable
Ask your lender to reduce or waive. Better.com charges $0.
Escrow / settlement fee
✓ Split with seller
Commonly negotiated 50/50 between buyer and seller.
Owner’s title insurance
~ Negotiable by state
In some states sellers always pay; in others it’s negotiated.
Agent commissions
✓ Negotiable since 2024
Post-NAR settlement, commission rates are fully negotiable.
Home appraisal
✗ Not negotiable
Set by independent appraisers. Required by lenders.
Recording fees
✗ Government fee
Set by county. No flexibility.
Transfer taxes
~ Varies by state
Some states allow buyer/seller to split; others assign by law.
Lender’s title insurance
✗ Required by lenders
Can shop for cheaper providers, but can’t skip it.
2024 NAR Settlement update: Following the National Association of Realtors settlement, buyer agent commissions are now fully negotiable and no longer set by MLS rules. Major real estate platforms like Zillow, Redfin, and Opendoor have updated their processes to reflect this — buyers can now negotiate agent fees directly.

Does the Market Affect Who Pays?

Absolutely. The real estate market conditions in your area directly affect your negotiating power over closing costs:

Buyer’s Market

More leverage for buyers

Homes sit longer, sellers are more flexible. Requesting $10,000–$15,000 in seller concessions is common and often granted.

Seller’s Market

Buyers typically pay everything

In competitive markets, asking for concessions can cost you the deal. Buyers often waive requests just to have their offer accepted.

Selling a Home? Your Costs Are Completely Different

Sellers pay 6–10% of the sale price — mostly in agent commissions. See the full itemized breakdown for sellers, including what Opendoor and Redfin charge vs traditional agents.

See Full Seller Closing Cost Breakdown →