Who pays the closing cost? (for sale, real estate, loan)

[ssmssm]

Usually, in northern VA, who pays the closing cost? Buyer, or seller? From the bank's screenshot, it seems both sides share the closing cost.

Thanks.

[LillyJo]

Since it's the buyer's loan, and his purchase, the buyer is supposed to pay it but often the buyer asks the seller to pay part of the closing costs and it's written into the contract.

[Carlingtonian]

Some costs are usually lender-paid; others are buyer-paid. However, buyers can also request that the seller pay some or all of their closing costs.

[FCNova]

It used to be a buyers market and very easy for the buyer to get closing costs paid by the seller. I don't know about now, the market is red hot for sellers.

[ssmssm]

How about commission fee for both realtor agents? I heard it is about 6% of housing price, that is a lot, and it is not listed on closing cost.

Why pays the commission fee?

Thanks.

[kww]

Originally Posted by ssmssm

How about commission fee for both realtor agents? I heard it is about 6% of housing price, that is a lot, and it is not listed on closing cost.

Why pays the commission fee?

Thanks.

Compensation for the agent is typically paid in full by the seller. Some agents will only work for a minimum amount (either $ or %), and require the buyer to cover any difference.

[ssmssm]

Originally Posted by kww

Compensation for the agent is typically paid in full by the seller. Some agents will only work for a minimum amount (either $ or %), and require the buyer to cover any difference.

Thanks. Now I am clear about about house buying details.

[boyd888]

The buyer always pays the closing costs. "Seller paid" closing costs just means you financed the closing costs into the loan.

Here's a good summary:
Real Estate and Red Sox -Massachusetts Homes for Sale: Seller Pays Closings Costs: An End to the Myth of Free Money.

[kww]

Originally Posted by boyd888

The buyer always pays the closing costs. "Seller paid" closing costs just means you financed the closing costs into the loan.

Here's a good summary:
Real Estate and Red Sox -Massachusetts Homes for Sale: Seller Pays Closings Costs: An End to the Myth of Free Money.

not always true.

The website blog you posted speaks on rolling them into the offer price, which is quite common (assuming you do not have an appraisal concern), but not every seller will be looking for a buyer to roll them in before accepting an offer.

One could of course argue that a buyer could pay the CC themselves, and just reduce the sales price to match the amount they would have asked for in CC, but not all buyers will have an extra $5-6000 minimum laying around. but paying list price and asking for 3% doesn't automatically mean a buyer is financing them

[boyd888]

Originally Posted by kww

but paying list price and asking for 3% doesn't automatically mean a buyer is financing them

Maybe not financing directly, but the CC are still being paid by the buyer. If you're asking for 3% you're asking the seller to take a 3% net hit which means you are in effect "overpaying" for the house by 3% regardless of how that influences your loan.

I think it is good that you can roll closing costs into the loan, but I do not like it described like it's some sort of major perk for buyers or that the seller is somehow conceding.