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Who Pays What at Real Estate Closing in the US: A Comprehensive Review

Real estate transactions involve various costs and fees, which can sometimes be complex and confusing for both buyers and sellers. Understanding who pays for what at real estate closing is crucial to ensure a smooth and transparent process. In this expert review, we will delve into the intricacies of real estate closing costs in the United States, providing informative insights that are easy to understand.

Before we delve into the specifics, it is important to note that real estate closing costs can vary depending on several factors, including the location of the property and the terms negotiated between the parties involved. However, there are certain fees and expenses commonly associated with real estate transactions. Let's explore them in detail:

  1. Lender-Related Costs: When obtaining a mortgage, buyers incur various fees. These typically include loan origination fees, appraisal fees, credit report fees, and loan discount points. Loan origination fees cover the administrative costs associated with processing the mortgage, while appraisal fees ensure that the property's value aligns with the loan amount. Credit report fees are charged to evaluate the buyer's creditworthiness, and loan discount points are prepaid interest that can lower the overall interest rate.

  2. Title-Related Costs: Title-related costs aim

Discover who is responsible for paying closing costs on a real estate sale in the US. This article provides a detailed overview of the parties involved and breaks down the common expenses incurred during the closing process.


When it comes to buying or selling a home, one question that often arises is, "Who pays closing costs on a real estate sale?" Closing costs refer to the fees and expenses associated with finalizing a real estate transaction. These costs typically include various fees, taxes, and charges that both the buyer and seller are responsible for. In this article, we will delve into the intricacies of closing costs, shedding light on who pays what during a real estate sale in the US.

Understanding Closing Costs

Closing costs can encompass a wide range of expenses, which can vary depending on the location and specific circumstances of the transaction. Here are some of the common expenses typically included in closing costs:

  1. Title Insurance: This insurance protects both the buyer and the lender against any unforeseen issues with the property's title.

  2. Appraisal Fees: An appraisal is often required to determine the market value of the property.

  3. Loan Orig

How much are closing costs for buyer in Ohio?

Closing costs in Ohio are, on average, $1,992 for a home loan of $145,637, according to a 2021 report by ClosingCorp, which researches residential real estate data. That makes up 1.48 percent of the home price.

Why is the buyer usually responsible for the largest portion of closing costs?

Why is the buyer usually responsible for the largest portion of closing costs? Expenses related to the mortgage loan and down payment make up the majority of the closing costs. What's a typical prepaid item that will go into a seller's credit column and a buyer's debit column on a closing statement?

How to calculate closing costs?

You can generally expect the total to be between 1 and 5% of the price you are paying to buy your home. Payment for closing costs can sometimes be financed with your loan, in which case it will be subject to interest charges. Alternatively, you can pay your closing costs in cash, similar to your down payment.

What are average closing costs in Colorado?

Closing costs in Colorado are on average of 3.5% of the total loan amount. But that varies from one lender to another and from one location to another. Colorado, with closing cost rates at what they are, you may want to talk with a licensed mortgage broker about your options and to get the best deal.

Who typically pays closing costs in Ohio?

The buyer In Ohio, as in most states, closing costs can include fees related to the mortgage loan, title search, appraisal and any applicable taxes. Although the buyer pays most of these costs, as the one taking out the loan, the seller is not off the hook.

What are the average closing costs in Ohio?

Closing costs in Ohio are, on average, $1,992 for a home loan of $145,637, according to a 2021 report by ClosingCorp, which researches residential real estate data.

Frequently Asked Questions

Who pays closing cost on the sale of real estate

Jul 21, 2023 — Realtor commissions: Sellers typically pay the commissions for both agents involved in the transaction (both their own agent and their buyer's).

What is the largest closing expense for the buyer?

Origination fee (or service fee) Most lenders charge an origination fee to cover service and administrative costs. This is typically the largest fee you pay to close your mortgage. Most borrowers pay 0.5% – 1.5% of the loan amount, though it can be higher or lower depending on your lender, according to Credible.

Do sellers pay closing costs in SC?

Who pays closing costs in South Carolina? Buyers and sellers each pay unique closing costs to finalize a home sale. In South Carolina, sellers typically pay for the title and closing service fees, owner's title insurance policy, transfer taxes, attorney fees, and recording fees at closing.

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