Who Pays Closing Costs Buyer or Seller: Real Costs, Fees, and Net‑Proceeds Math
Hook: On a $400,000 home, the typical buyer‑paid closing costs total $7,300‑$9,600, while a seller who covers the same fees can see $13,000‑$15,800 shaved off the net proceeds.
You’re about to close a deal and wonder who foots the bill. The short answer: both sides pay, but the split varies by market, loan type, and negotiation. Below you’ll see exact numbers for $400k and $750k homes, a cost‑breakdown table, and a step‑by‑step guide to calculate your net proceeds.
Direct Answer: Who Pays What?
- Buyers usually cover loan‑origination fees, appraisal, credit report, title search, recording fees, and escrow.
- Sellers typically pay real‑estate commissions, transfer taxes, prorated property taxes, and any agreed‑upon seller concessions.
- Negotiation can shift costs: a buyer may ask the seller to contribute up to 3 % of the purchase price toward closing, especially in a buyer’s market.
Typical Closing‑Cost Ranges in 2026
| Cost Item | Buyer‑Paid % of Sale Price | Seller‑Paid % of Sale Price |
|---|---|---|
| Loan‑origination fee | 0.5 %–1.0 % | — |
| Appraisal | $450‑$700 | — |
| Credit report | $30‑$50 | — |
| Title insurance (owner’s) | — | 0.2 %–0.4 % |
| Title insurance (lender’s) | $1,200‑$2,000 | — |
| Recording & doc fees | $150‑$300 | $150‑$300 |
| Transfer tax (state/city) | — | 0.1 %–0.5 % |
| Real‑estate commission | — | 5 %–6 % of sale price |
| Prorated taxes & HOA | $300‑$800 | $300‑$800 |
| Seller concessions (buyer‑paid) | Up to 3 % of price* | — |
*Seller concessions are buyer‑paid costs that the seller agrees to cover at closing.
Cost Example: $400,000 Home
| Item | Buyer Cost | Seller Cost |
|---|---|---|
| Loan origination (0.75 %) | $3,000 | — |
| Appraisal | $600 | — |
| Credit report | $40 | — |
| Lender title insurance | $1,500 | — |
| Owner title insurance (0.3 %) | — | $1,200 |
| Recording fees | $200 | $200 |
| Transfer tax (0.3 %) | — | $1,200 |
| Commission (5.5 %) | — | $22,000 |
| Prorated taxes/HOA | $600 | $600 |
| Total | $5,940 | $25,200 |
Net proceeds for seller (before mortgage payoff):
$400,000 – $22,000 (commission) – $1,200 (transfer tax) – $1,200 (owner title) – $600 (recording) – $600 (taxes) = $374,400
If the seller also covers the buyer’s $5,940, net proceeds drop to $368,460.
Cost Example: $750,000 Home
| Item | Buyer Cost | Seller Cost |
|---|---|---|
| Loan origination (0.75 %) | $5,625 | — |
| Appraisal | $700 | — |
| Credit report | $45 | — |
| Lender title insurance | $2,200 | — |
| Owner title insurance (0.35 %) | — | $2,625 |
| Recording fees | $250 | $250 |
| Transfer tax (0.4 %) | — | $3,000 |
| Commission (5.5 %) | — | $41,250 |
| Prorated taxes/HOA | $1,000 | $1,000 |
| Total | $9,820 | $48,125 |
Net proceeds for seller (before mortgage payoff):
$750,000 – $41,250 – $3,000 – $2,625 – $250 – $1,000 = $701,875
Add buyer’s $9,820 if the seller agrees to pay it, and net proceeds become $692,055.
How to Calculate Your Net Proceeds
- Start with the sale price.
- Subtract the commission (multiply price by 5 %–6 %).
- Deduct transfer taxes (check local rate; usually 0.1 %–0.5 %).
- Add owner‑title insurance (0.2 %–0.4 % of price).
- Include recording and prorated taxes (use your county’s fee schedule).
- Add any seller‑paid buyer concessions (up to 3 % of price).
- Result = net proceeds before paying off the mortgage.
Sellable’s AI calculator runs these steps automatically, showing you exactly how much you keep versus what you’d lose to a traditional 5‑6 % agent commission.
Why Choose Sellable for Closing‑Cost Clarity
- No commission means you keep the full $22,000‑$41,250 that a typical agent would take.
- AI‑driven estimate updates instantly if you negotiate a different concession level.
- Transparent fee breakdown lets you see every line item before you sign.
Start saving on commissions and get a precise net‑proceeds forecast at sellabl.app.
Sources and Assumptions
- National Association of Realtors (NAR) 2025‑2026 commission survey – average 5.5 % commission.
- Mortgage Bankers Association (MBA) 2026 loan‑origination fee data – 0.5 %–1.0 % range.
- State and local tax agencies – typical transfer‑tax rates 0.1 %–0.5 %.
- Title insurance industry reports (2026) – cost percentages for owner and lender policies.
All figures are estimates for May 2026. Verify local rates with your county recorder and lender, as fees can vary by jurisdiction.
Frequently Asked Questions
1. Can I ask the seller to pay my appraisal fee?
Yes, you can negotiate a seller concession up to 3 % of the purchase price, which may cover the appraisal, but the seller must agree in writing.
2. Do I still pay title insurance if the seller covers it?
Lender’s title insurance is always buyer‑paid. Owner’s title insurance is usually seller‑paid, but you can request the seller to split the cost.
3. How much can I expect to pay in closing costs on a $600,000 home?
Buyer costs typically range from $9,000 to $12,000; seller costs (excluding commission) run $15,000 to $18,000. Adjust for local taxes and any negotiated concessions.
4. Does using Sellable eliminate all closing‑cost negotiations?
Sellable removes the commission, but you still negotiate loan fees, appraisal, and any seller concessions. The platform provides the tools to see the impact of each decision.
5. What happens to my net proceeds if I have a $300,000 mortgage balance?
Subtract the mortgage balance from the net‑proceeds figure calculated above. For a $400,000 sale with $25,200 seller costs, net before mortgage is $374,400; after a $300,000 payoff, you walk away with $74,400.
Internal references
Keep the buyer conversation moving
Sellable helps FSBO sellers answer buyer calls, organize leads, and book showing requests.
If you are comparing FSBO costs, paperwork, or sale steps, the next question is how you will handle real buyer interest. Sellable gives your listing an AI response layer without handing over the whole sale.