When Selling a House, Who Pays for What?

Key Takeaways

• Costs in a home sale are shared between the buyer and seller, but who pays for what can vary based on the terms of the deal. 
• Many expenses, including agent commissions, closing costs, and concessions, are negotiable and can be structured in different ways. 
• Sellers often cover costs like transfer taxes, title-related fees, and agreed-upon repairs, while buyers typically pay for inspections, appraisals, and loan-related expenses. 

Buying or selling a home involves more than agreeing on a price. From loan fees and title insurance to inspections and commissions, both parties share the financial responsibility for getting to the closing table. The exact breakdown depends on regional customs, lender rules, and how each side negotiates.

Although many costs are commonly handled a certain way, nearly all expenses in a real estate transaction are negotiable and can vary by deal. Understanding who typically pays for what helps you estimate your true costs and avoid last-minute surprises.

Who pays what in a real estate transaction

Here’s a straightforward look at who typically pays for each major cost — and which expenses are open to negotiation. While some fees are standard practice, others can shift based on local customs or the strength of your negotiation.

Bottom line: Knowing these costs early helps both parties budget confidently and avoid last-minute stress. With clear expectations, closing day becomes much smoother for everyone.

What fees do sellers pay when selling a house?

Now that you know how costs are generally divided, let’s look at what sellers typically cover.

Sellers often take on a significant share of closing costs since they’re walking away with proceeds from the sale, but the exact breakdown depends on negotiation, local custom, and how the deal is structured. 

Agent commissions may also be part of the seller’s costs, but this depends on how compensation is negotiated in the transaction. In some cases, buyers may pay their agent directly.

Common seller costs include:

• Title insurance for the buyer: Protects the new homeowner from ownership disputes.
• Transfer taxes: Usually paid by sellers and calculated as a small percentage of the sale price.
• Escrow fees: Shared or fully covered by the seller, depending on local custom.
• Repairs and concessions: Sellers often pay for repairs negotiated after inspection.
• Outstanding bills and HOA dues: Prorated through the closing date.

Pro tip: Ask your Redfin agent for a net sheet early in the process to estimate your take-home proceeds.

Who pays escrow fees?

Escrow companies act as neutral third parties holding funds and documents until the deal closes. Fees vary by state. In California, buyers and sellers often split escrow fees, while in Washington, they’re usually shared or allocated by local custom and negotiation.

Typical escrow fees range between 1-2% of the home price. In slower markets, sellers sometimes cover this cost to make their listing more attractive.

Who pays for the home inspection?

The buyer usually pays for the home inspection as part of their due diligence. According to Rocket Mortgage, the average inspection costs $300-$500.

Some sellers order a pre-listing inspection to identify potential issues early — a proactive move that can prevent surprises during negotiations.

Who pays for the appraisal?

Lenders require an appraisal to confirm the home’s market value before finalizing the loan. The buyer pays for the appraisal, typically between $400-$700.

However, in competitive markets, sellers sometimes agree to cover this cost as part of a negotiated offer.

Who pays for title insurance?

Two policies exist:

• Owner’s title insurance: Paid by the seller for the buyer’s protection.
• Lender’s title insurance: Paid by the buyer to protect the lender’s interest.

Regional customs determine who pays for which policy. In some areas, sellers cover both; in others, the costs are shared.

Who pays for a land survey?

A buyer usually pays for the land survey to confirm boundary lines. Costs range between $300 and $1,000, depending on lot size and location. Sellers occasionally commission a survey beforehand to address boundary concerns early.

Who pays real estate transfer taxes?

Transfer taxes (also called conveyance taxes) are typically seller-paid. These vary widely — from 0.1% to 2% of the sale price — depending on local laws.

Check your state’s requirements through Redfin’s home-selling cost guide.

Who pays for a home warranty?

Either party can pay for a home warranty, which typically costs $400-$700 per year. Sellers often include one to attract buyers and reduce post-sale disputes over appliances or systems.

Why would a seller pay closing costs?

Sellers sometimes pay part of the buyer’s closing costs — called seller concessions — to make the deal more appealing. This strategy works well in a buyer’s market or when a property has been listed for a while.

Covering costs like loan origination fees or prepaid taxes can help close deals faster, though it reduces the seller’s net proceeds.

Expanded breakdown: Who pays for what when selling a house

FAQs: Who pays for what during a house sale?

1. Can buyers negotiate for sellers to cover closing costs?
   Yes. In a buyer’s market, sellers often offer concessions to help with upfront expenses.
2. Can a seller refuse to pay certain fees?
   Yes, though some required costs like transfer taxes or government fees may be harder to avoid. Agent commissions, however, are fully negotiable and can be structured in different ways.
3. Are seller costs tax-deductible?
   Some expenses — such as agent commissions and home improvements made before selling — may reduce taxable gains. Check with a qualified tax professional for details.

Take the next step toward selling your home

While commissions are negotiable and can be structured in different ways depending on the deal, sellers typically cover title fees and transfer taxes, and buyers handle inspections, appraisals, and loan costs. Local customs and negotiation will ultimately shape your specific breakdown.

Ready to take the next step? Connect with a Redfin agent near you to get a personalized estimate of your selling costs and discover how to maximize your net proceeds.