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Who Pays Closing Costs When Selling a Home?

Closing costs can be tricky to navigate, especially when it comes to selling a home. It’s important to understand who is responsible for paying the various fees associated with closing a sale so you can be prepared and budget accordingly. Let’s take a look at who typically pays closing costs when selling a home.

Seller’s Closing Costs

When you sell your home, there are certain costs that you will be responsible for. This includes real estate commissions, title insurance, transfer taxes and other related expenses. You may also be responsible for prorated property taxes associated with the sale and any outstanding liens or debts that must be paid off during the closing process. Additionally, some states require sellers to pay a documentary stamp tax as part of the process.

Buyer’s Closing Costs

The buyer is typically responsible for covering their own closing costs when purchasing a home. These costs can include loan origination fees, appraisal fees, points (which are an optional expense in order to reduce the interest rate on the loan), title search and insurance fees, survey fees, taxes and other related administrative expenses. Depending on the type of loan that the buyer has chosen, they may also have to cover title examination fees and legal representation fees. In addition to these expenses, buyers may opt to purchase homeowner’s insurance as part of their closing costs as well.

Split Closing Costs

In some cases, it is possible for both parties to agree on splitting certain closing costs associated with purchasing or selling a home. However, this should always be discussed prior to signing any documents related to the sale and should reflect in your contract agreement before moving forward with the transaction. It is important to note that while splitting closing costs is not unusual in real estate transactions; it is not common practice either.


Closing costs are an unavoidable part of buying or selling a home but understanding who is responsible for which type of cost can help you plan ahead accordingly so you aren't caught off guard by any unexpected expenses during the process. Typically speaking, sellers are responsible for covering their own closing costs while buyers must take care of their own loan-related expenses plus additional administrative items such as title search and insurance fees as well as legal representation if necessary. Although split closing costs are sometimes negotiated between both parties involved in a sale; this should always be discussed beforehand and detailed in your contract agreement before signing anything official.

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