# Closing Costs: Who Bears the Burden When You Sell
Sellers and buyers split closing costs in different ways depending on local custom and market conditions. In most markets, sellers pay real estate agent commissions, typically 5-6% of the sale price, split between the listing and buyer's agents. Sellers also cover title insurance, transfer taxes, and recording fees in many states.
Buyers traditionally pay for their own inspections, appraisals, and lender fees. However, these divisions shift based on negotiation leverage and local norms. In a buyer's market, sellers often cover more expenses to close deals. In a seller's market, buyers absorb additional costs.
Some costs split evenly. Property taxes and homeowner association fees divide based on closing date. Both parties may negotiate who pays for repairs uncovered during inspections.
The specific breakdown matters. A $500,000 home sale with standard 6% commissions costs the seller $30,000 alone. Transfer taxes vary dramatically by state. Delaware charges nothing; New York charges up to 3.9%.
Sellers should budget for 8-10% of the sale price in total closing costs. Buyers typically pay 2-5%. Your real estate agent and closing attorney can outline exactly what applies in your state and negotiate terms that work for your situation. Understanding these costs upfront prevents surprises at closing.