Who Pays Closings Costs? – Buyer or Seller?
Mortgage Broker
Emmett Dempsey Mortgage Broker
Published on May 1, 2021
who pays closing costs

Who Pays Closings Costs? – Buyer or Seller?

In today’s article/video I talk about who pays closing costs; the buyer or the seller?

Well the short answer is: both pay closing costs!

What are closing costs?

Wait a minute, I thought all I had to pay was the down payment right?  Well not so much.  Closing costs are the third party charges necessary to transfer ownership of the property from the seller to the buyer.  Most buyers use a mortgage, so in this example, I will assume you are getting one (ideally from me at Treasure Coast Mortgage 🙂 – Click HERE to get pre-approved)

So who pays what?

For a typical “arms length” resale purchase of a single family home in Florida the costs are usually split a certain way.

Buyer side costs:

  • Lender fees – Origination charges
  • Appraisal – POC (Paid outside of closing)
  • Inspection/insurance inspections (POC)
  • Title Insurance Fees – Lenders Title
  • Recording
  • Transfer Taxes – 20c / 1000 of loan amount and 35c /1000 of loan amount
  • Pre-Paids – Homeowners Insurance / HOA
  • Escrows

Seller side costs:

  • Mortgage payoff(s)
  • Real estate commission
  • Seller concessions
  • Deed Stamps – 70c / 1000 of SALES price
  • Owner’s title policy
  • Other legal items – Back HOA dues, etc

What about new construction?

Well with the current inventory situation, new construction seems attractive.  But don’t let that new carpet smell cloud your judgement!  Builders put all the costs of both of the above lists on the buyer side, THEN give it back to you as an “incentive” to use their in-house lenders/title companies.  It is a practice that I believe hurts consumers, because it dulls their ability to use the market to find the best option.  If they like the house; they better play ball with the builder steering them.  Its a shame, but thats the way it is.

Some builders allow you to use your lender and still give the incentive.  Most big builders will allow you to use anyone if you are denied by their in-house lender.  Just make sure you know all the numbers going in.


Closing costs are a part of every real estate transaction in Florida.  Make sure you get a Loan Estimate and compare lenders/brokers.  The best place to get a mortgage is from a mortgage broker like me of course.  🙂  If you want your own free consultation, please call me at (772) 618-5058.