Who Pays Closing Costs — Buyer vs Seller, Line by Line
Updated 2026-10-25
The split, in one sentence: buyers pay the lenders and third parties; sellers pay the agents and the government. The buyer column sums to roughly $2,375–$6,775 plus a 0.5%–1% origination fee on the loan. The seller column is dominated by commission at ~5.4%–5.7% of the sale price, plus transfer tax and any negotiated concessions. Every line below is cited.
The buyer side
| Line item | Band | Note |
|---|---|---|
| Loan origination / underwriting | 0.5%–1% of loan | Lender fee. Only the 3% QM points-and-fees cap is a rule (CFPB); the rest is norm. |
| Appraisal | $300–$500 | Single-family avg ~$360–$400; FHA/VA $400–$900. |
| Credit report | $25–$100 | Per applicant, commonly $30–$50. The only fee collectible before the Loan Estimate (CFPB). |
| Title search | $200–$400 | Public-records title examination. |
| Title insurance (lender's + owner's) | $1,000–$3,000 | Premiums state-regulated — promulgated rates in TX/NM/FL; your state's model moves this line most. |
| Escrow / settlement / closing fee | $500–$1,500 | Attorney states (GA/SC/MA) run the high end. |
| Recording fees (deed + mortgage) | $25–$250 | County schedules, often ~$125–$180 per document. |
| Survey (where required) | $300–$1,000 | Often waivable if a recent survey can be reused. |
Sources: Bankrate, HomeAdvisor/Angi, NerdWallet, CFPB — retrieved 2026-09-25. Excludes prepaid property taxes, homeowner's insurance, and prepaid interest (those depend on your close date and escrow election — the closing cost calculator models them separately).
The seller side
| Line item | Band | Note |
|---|---|---|
| Agent commission (both sides) | ~5.4%–5.7% of price | Post-NAR-settlement: listing ~2.5–2.8% + buyer-agent comp averaging ~2.4% (Redfin, Q1 2025). Fully negotiable. |
| Transfer / stamp tax | 0%–4%+ of price | Entirely state/county specific: 0% in 14 states up to DE 4.0% / Philadelphia 4.278%. Who pays is state custom. |
| Seller concessions (if agreed) | 0%–3% of price | Credits to the buyer, negotiated per contract; defaults to 0. |
Source: Redfin commissions research (May 2025) and state transfer-tax compilations, retrieved 2026-09-25. The combined-commission range is an observed figure, never a rule — compensation is fully negotiable case by case post-settlement.
What is negotiable vs fixed
- Negotiable (contract terms): owner's-title payer, transfer-tax split, buyer concessions, and both commission sides.
- State-regulated: title-insurance premiums (promulgated rates in TX/NM/FL; rating-bureau in NY/PA; state guaranty in IA) and transfer taxes.
- Rule-bound: only the 3% QM points-and-fees cap (CFPB) and the one-fee-before-Loan-Estimate rule (credit report) are actual rules; nearly every other "standard percentage" is a norm.
Run your own numbers with the closing cost calculator, see how the lines vary by state in closing costs by state, and for the seller's full net sheet try what it costs to sell a house or the closing costs explainer.
FAQs
How much does the buyer pay in closing costs?
The buyer-side lines above sum to roughly $2,375–$6,775 before prepaid taxes and insurance — plus the origination fee, which is 0.5%–1% of the loan amount (so $1,500–$3,000 on a $300k loan). Lenders and third parties are paid on the buyer's side of the settlement sheet.
How much does the seller pay in closing costs?
The seller's dominant line is agent commission at ~5.4%–5.7% of the sale price combined (both sides, post-NAR-settlement, Redfin Q1 2025) — about $16,200–$17,100 on a $300k sale. Add transfer/stamp tax (0%–4%+ depending on state) and any negotiated buyer concessions (0%–3%).
Can closing costs be split or negotiated?
Yes. Who pays what is negotiable: owner's-title payer, transfer-tax split, and buyer concessions are contract terms, not data. Sellers still offer buyer-agent compensation on roughly 60–65% of listings post-settlement, but it is no longer set on the MLS and must be negotiated.
Do buyers pay the seller's agent?
Not directly anymore. Since the NAR settlement (Aug 17, 2024), buyer-agent compensation is no longer on the MLS; buyers sign written agreements before touring, and the seller-offered comp (~2.4% average, Q1 2025) is negotiated per contract — or the buyer pays their own agent.
Sources
- Bankrate — What are closing costs?
- HomeAdvisor/Angi — Home appraisal cost
- CFPB — Loan Estimate and Closing Disclosure guide (fee-collection rules)
- Redfin — Real estate agent commissions report (May 2025, post-NAR-settlement)
All sources retrieved 2026-09-25 via the closing-costs data layer. Estimate only — your settlement sheet is the binding document.