Which closing costs are typically paid by the seller in a real estate transaction?

In a real estate transaction, the seller is typically responsible for the payment of real estate commissions. This fee is a percentage of the sale price paid to the real estate agents involved in the transaction. Since the real estate agents represent the seller in order to facilitate the sale, it is standard practice for sellers to cover these costs as part of the closing process.

Other costs, such as home inspection fees, property taxes, and homeowners association fees, can sometimes be negotiated between the buyer and seller. However, real estate commissions have a clear convention where the seller is liable for this expense. Understanding the typical distribution of these costs is essential for anyone involved in real estate transactions, allowing for better financial planning and expectations concerning the sale process.