Do Sellers Have to Pay Closing Costs? Here's What Buyers Can Expect

Closing costs are part of buying a house. Normally, the buyer is responsible for these fees, though sometimes, the home seller will agree to help cover them. Closing costs can include fees such as loan origination, appraisal, and title insurance.

These fees can be expensive (typically thousands of dollars), and buyers are typically required to pay them in cash. Because of this, it isn't unusual to ask sellers to help cover some of the closing costs. But it can be tricky — after all, the seller is already paying their own closing costs, so why would they want to pay even more and get less profit from their sale?

Although sellers are not required to pay a buyer’s closing costs, there are circumstances where they might, especially if the buyer has made it more appealing for sellers to do so.

If you’re a home buyer interested in getting a seller to pay some or all of your closing costs, your best bet is a great real estate agent negotiating on your behalf. With Clever, it's easy to find one: just answer a few short questions, and we’ll send you a no-obligation list of top agents in your area.

Who usually pays closing costs?

Both buyers and sellers pay closing costs, but the amount and the types of fees are different. Buyers usually pay more out of pocket because their costs are tied to getting a mortgage and preparing to move into the home.

Sellers' costs are typically deducted from the money they make from the sale. Sellers often pay fees like transfer taxes, escrow charges, and title-related expenses. Buyers, on the other hand, are responsible for loan and lender fees, inspections, and prepaying expenses such as property taxes and insurance.

Here’s a breakdown of common buyer closing costs in 2025:[1]

Altogether, buyer costs usually add up to 2–5% of the home’s purchase price — about $6,000–15,000 on a $300,000 home in 2025. Some estimates put the range even higher, at 2–6% (up to $18,000), depending on your location and loan type.[2]

Not every line item is up for debate — for example, the buyer will almost always pay for the home inspection between the time their offer is accepted and the time the deal closes — but other things like title insurance, escrow fees, and appraisals are often negotiated, especially in slower real estate markets. (In hotter, more competitive markets, it’s usually recommended that buyers avoid asking the seller for anything to make their offer as strong as possible.)

Why would the seller cover the buyer's closing costs?

Sellers usually pay a buyer's closing costs to keep the deal moving forward. However, sellers may also offer to cover buyers’ costs in slower markets, where it's more challenging to sell homes, making their listing more attractive. At other times, they may offer to pay them because they need to sell their home quickly, which can be an incentive for the buyer to submit an offer promptly.

In some deals, the buyer and seller agree to raise the purchase price of the home to make it feasible for the seller to cover some of the buyer’s closing costs. This gives the seller a little more cash, which they’ll then use to pay the buyer’s costs, making it so the buyer doesn’t have to bring as much money to the closing table later. It’s a common form of seller concessions and can be especially helpful for first-time buyers tight on cash.

Sellers may also offer a closing cost credit to avoid other negotiations. For example, if an inspection uncovers issues, a seller might provide a repair credit at closing instead of fixing items before move-in. The sale stays on track, and it gives the buyer funds to handle the work later.

Advantages of the seller paying closing costs

Some advantages of a seller paying a buyer's closing costs include lowering the amount of cash you need at closing, keeping more savings in the bank, and making the move-in process less stressful.

• Lower upfront costs: Buyers have less to cover in closing costs out of pocket.
• More money left in savings: Buyers can keep a cushion for emergencies or moving expenses instead of draining their accounts.
• Easier to close on a loan: Lending underwriters often like knowing that buyers will have some money left after closing.
• Less financial stress when moving: Any extra cash you can hang onto can help with moving expenses, furniture, or small repairs right after move-in.

Disadvantages of the seller paying closing costs

For a buyer, disadvantages of the seller paying closing costs include potentially higher overall costs, a weaker negotiating position, and possible appraisal challenges.

• The home price may go up: Sometimes, sellers agree to cover the buyer's closing costs but raise the sale price a little to make up for it. This means the buyer is still paying, just in a different way (through a bigger loan).
• Weaker offer in a competitive market: If multiple buyers are bidding, the seller will likely choose the one who doesn’t require extra help.
• Appraisal risk: If the home price is pushed up too much, the appraiser may not agree it’s worth that amount, which can create problems with the loan.
• Less room for other requests: If a seller already covers closing costs, they may be less willing to negotiate repairs or move-out timing.

Common win-win scenarios

It may not seem like a seller paying a buyer’s closing costs would be a win for the seller, but it can be. All it takes is for the seller to get what they need from the sale, and for the buyer to be able to bring less cash to the closing table.

Here are a few examples.

• Raising the purchase price of the home. Despite what it sounds like, the buyer still wins here because they can hang onto more of their cash and use it instead for things like moving expenses. The seller wins because they can take that “extra” profit and use it to pay the buyers’ closing costs — thus, the seller doesn’t really “feel” the financial loss, since they’re still getting the profits they anticipated to begin with.
• Slow market. In this scenario, when a seller offers to pay a buyer’s closing costs, the seller wins simply because they’re getting their home sold in a difficult market. This is especially true if the seller needs to sell the home quickly.
• As-is purchase. This is another scenario where sellers and buyers both win — a seller who needs to move quickly or who doesn’t have cash on hand to make repairs can instead sell their house as-is, and offer to use their profits to pay for the buyers’ closing costs. The buyers keep more cash and can make the repairs on their own timeline.
• Financially bumpy transactions: Sometimes, a buyer and seller will hit a roadbump mid-transaction when it’s discovered that the buyer may not have enough cash on hand to cover their closing costs. While paying the buyer’s closing costs might not seem like a win for the seller here, it could still be a win. Otherwise, the seller would have to back out, let their home sit on the market even longer (becoming stale), and hope to find a new buyer within their timeframe.

Can a seller refuse to pay closing costs?

A seller can always refuse to pay the buyer's closing costs. By default, these costs are the buyer’s responsibility, and sellers have no obligation to cover them.

Sellers are more likely to refuse when the market is hot, demand is high, or they expect multiple offers. In those situations, buyers who don’t ask for concessions are more attractive, and sellers don’t feel pressure to sweeten the deal.

On the other hand, sellers facing a slower market or trying to move quickly may be more open to covering closing costs. It depends on their goals — whether they want the highest possible profit, the fastest sale, or just a smooth, guaranteed closing.

What happens if I can't afford closing costs?

If you’re buying a home and find that you don’t have enough cash to close — and the seller won’t pay any of your buyer closing costs — you still have some options that don’t involve simply backing out of the deal.

Reduce or limit your closing costs

There are a few ways to bring down the total amount you owe:

• Shop around for services: Compare quotes from multiple lenders, appraisers, title companies, and inspectors. Even small differences can add up.
• Ask your lender about fee reductions: Some lenders will lower or even waive certain charges if you ask, depending on your creditworthiness or history with them.
• Skip extras: Optional add-ons like mortgage points, home warranties, or supplemental insurance increase costs. Skipping these can save you cash up front.
• Close later in the month: Since you usually have to prepay interest from your closing date until the end of the month, choosing a closing date near the end means you’ll owe fewer days of interest upfront. For example, if you close on June 2, you’d owe interest for almost the whole month of June (about 28 days of interest). If you close on June 29, you’d only owe interest for two days (June 29 and June 30).

Apply for assistance programs

State and local programs, nonprofits, and sometimes employers offer help with upfront costs, as long as you meet certain eligibility criteria.

Assistance can be provided through grants, deferred loans, and some special types of forgivable loans. Note that these types of assistance programs usually have rules, though — the rules state you have to live in the home a certain number of years to qualify.

A great place to start is your state’s government website: most have information for home buyers needing downpayment and closing cost assistance. Also check with your county’s housing administration to learn about different programs, or ask your realtor for any you might qualify for.

Ask for lender credits

Some lenders cover part (or even all) of your closing costs in exchange for a slightly higher interest rate. This can reduce your upfront cash burden, but be aware of how much more you’ll pay over time before committing.

Use gift funds

Most loan programs allow you to use money from family members and close friends for closing costs. You’ll usually need a signed letter from the giver confirming it’s a gift and not a loan.

Can you negotiate closing costs after signing a purchase agreement?

Yes, you can sometimes negotiate closing costs after signing a purchase agreement. The contract is legally binding, but most agreements provide opportunities to adjust the terms and processes for amending or adding onto those contracts.

For example, if an inspection reveals necessary repairs, the buyer may request a credit toward closing costs instead of requiring the seller to make the repairs before move-in. If the seller agrees, a real estate agent can write an amendment into the contract that the seller signs off on.

Sellers may also agree to adjust closing costs if delays, financing issues, or other surprises pop up. While it’s not guaranteed, renegotiating closing costs after the agreement is signed is fairly common when new information comes to light during the process.

Bottom line: Do sellers have to pay closing costs?

Sellers do not have to pay a buyer’s closing costs — those costs are normally the buyer’s responsibility. But in many cases, sellers agree to cover some or all of them to help finalize the deal. Whether they’ll say yes depends on the market, the strength of the offer, and how motivated they are to sell.

For buyers, understanding how closing costs work is essential to knowing what to ask for and when. A real estate agent can explain your options, highlight the trade-offs, and negotiate on your behalf.

Clever makes it easy to connect with top local agents who know how to structure offers, win concessions, and save buyers money. Answer a few quick questions, and we’ll send you a no-obligation list of experienced agents in your area.

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