Closing costs are a very important aspect of a transaction of the house. But often this question is raised, which party is the appropriate one to pay the closing cost. In short, buyer and seller closing costs are paid according to the terms of the contract, which both parties agree on. The buyer is responsible for some closing costs. But, in most cases, sellers are usually the ones who should pay for it.
Closing costs are all those fees and expenses regarding the house that should be paid by the seller. Some localities have the custom to split it evenly. But now it can be seen that most sellers are paying for it. As homeowners, they usually have the urge to sell the house. It is considered their duty to make the experience clean and smooth for the buyer.
Sellers pay very little during the house sale. If they are not renovating the house or doing some projects to make the house more valuable, they don’t have to spend much before the house is sold. Typically, sellers pay the seller’s and buyer’s agents. The average closing cost can be 6% of the total exchange. Moreover, it is not a common practice, but sometimes the sellers offer to buy the title insurance for the buyer.
Negotiation can take place during this time. In a buyers’ market, it is very common for the seller to pay for the closing cost. Even in a sellers’ market, some homeowners offer to pay the closing cost, as they were sitting in the market for too long.