In a real estate deal purchaser and seller negotiate a sales price. The negotiated price must be paid to the seller by the buyer in cash or by a mortgage(loan) obtained by the buyer. Both seller and buyer must pay closing costs at the time the property is transferred. Some common closing costs are real estate commissions, appraisal fees, loan fees, escrow charges, property taxes, transfer taxes, homeowner’s insurance, title insurance premiums, title company service fee, pest inspections, radon inspections, property survey and the like.
Seller typically pays real estate commissions, transfer taxes, prorated property taxes, liens against the property.
Some costs that buyers pay are appraisal fees, loan fees, escrow charges, prorated property taxes, transfer taxes, homeowners insurance, title insurance premiums, title company fee, pest inspections, radon inspections, property survey, home protection plan.
Buyers sometimes ask sellers to pay part of the buyers closing costs. Closing cost assistance reduces the amount of cash that buyers need to buy a home. Homes in Alexandria and other areas in Virginia and Maryland can be pricey. Since home prices are the basis for downpayment and some closing cost items buyers may have to have have a large sum of money to buy a home. So when sellers help with closing costs it makes the home purchase more affordable for buyers. It may help the sellers home sell faster because it opens up the door to a larger pool of buyers.
Buyers and sellers should look to their real estate agent to find out if paying or requesting closing assistance is beneficial or practical in their market and circumstance.