One of the biggest questions buyers and sellers have is who pays for closing costs in a real estate transaction. The short answer is both parties have their own closing costs. The amount of these closing costs can vary greatly, which is why home buyers and sellers need to know these costs upfront. A lender will be able to provide a home buyer with their estimated closing costs. While a title company and/or Realtor will be able to provide a home seller with their estimated closing costs. These estimates won’t be exact, but they will be close to the actual amounts. Lenders and Realtors alike tend to overestimate, so there are no surprises.
If you plan on buying or selling real estate you need to know what your estimated closing costs are before you decide to buy or sell. It would be unfortunate for either party to get to the closing table and realize they don’t have enough funds.