Does the buyer or seller pay closing costs?

The buyer and the seller both have closing costs in a real estate transaction. While buyers have more items to pay for at a closing, sellers generally pay the higher amount.

Buyers pay for a long list of fees, charges and taxes at closing. These include items such as loan origination, credit report and appraisal fees. The seller pays the real estate agent's commission, title transfer fees and prorated taxes and utilities. Buyers can negotiate for sellers to pay some or all of their closing costs. The amount that sellers are allowed to cover for the buyer varies by state, lending institution and type of loan.