Who Pays Closing Costs? — Buyers or Sellers?

Closing costs can be a surprise for many first-time FSBO sellers and buyers. If you’re listing your home without a traditional agent, it’s important to understand who pays what — and how much — at closing.

💡 Quick Answer: Buyers usually pay most of the closing costs — but sellers typically cover title fees, transfer taxes, and sometimes part of the buyer's costs in negotiations.

What Are Closing Costs?

Closing costs are the fees and charges due when a real estate transaction is finalized. They typically include loan origination fees, title insurance, escrow fees, transfer taxes, and more. Costs vary by state and transaction type.

Typical Buyer Closing Costs

  • Loan origination and underwriting fees
  • Appraisal and home inspection
  • Title insurance (lender's policy)
  • Escrow fees
  • Recording fees
  • Prepaid taxes and insurance

Typical Seller Closing Costs

  • Title insurance (owner’s policy)
  • Transfer taxes (if applicable)
  • Escrow or attorney fees
  • Outstanding liens or prorated taxes
  • Real estate commissions (if applicable)

Who Pays What in a FSBO Sale?

In a FSBO transaction, you’re already saving on listing agent commission — but it’s still smart to know your financial responsibilities. While buyers cover the bulk of costs tied to their loan and due diligence, sellers are often responsible for ensuring clear title and transfer documents.

Brokerless Tip: Many FSBO sellers agree to pay part of the buyer’s closing costs as an incentive — especially in slower markets or if requested during negotiation.

Can You Negotiate Closing Costs?

Yes. Every part of a real estate deal is negotiable, including closing costs. You can offer to cover a flat dollar amount or a percentage of the buyer’s fees. Likewise, you can counter a buyer’s request by adjusting the sale price.

How Much Are Closing Costs?

Closing costs typically range from 2% to 5% of the home’s purchase price. For example, on a $300,000 home:

  • Buyer costs: ~$6,000 to $15,000
  • Seller costs: ~$3,000 to $7,500 (depending on title, taxes, and any agent commissions)

Need Help Calculating Costs?

Our How It Works page breaks down what to expect when selling with Brokerless.com. Or, check our Pricing page for transparent flat fee listing options.

Final Thoughts

Whether you’re a buyer or seller, understanding closing costs gives you more control during negotiations. With Brokerless, you keep more of your equity — and avoid unexpected surprises at the closing table.

Still have questions? Visit our FAQ page or contact us for help with your FSBO listing. You can also browse our full library of tips on the Flat Fee MLS Resources & Guides page.