Minnesota, USA, Feb 2025 – Closing on a new home is an exciting milestone, but many buyers and sellers alike have questions about closing costs—who pays what, and how much should be expected? Real Estate Corners, a trusted leader in the real estate industry, provides insights into this crucial aspect of home buying.

What Are Closing Costs?

Closing costs are the various fees and expenses associated with finalizing a real estate transaction. These costs typically range from 2% to 5% of the home’s purchase price and can include lender fees, title insurance, escrow charges, appraisal fees, and more.

Who Covers Closing Costs?

Buyer's Responsibility:

Homebuyers generally pay for expenses such as loan origination fees, credit report fees, home inspections, and homeowner’s insurance. Additionally, the buyer may be responsible for the first six months of property taxes and prepaid interest on their mortgage.

Seller's Responsibility:

Sellers typically cover the real estate commission and title transfer fees and may also pay a portion of the buyer’s closing costs as part of negotiations. In competitive markets, sellers might offer closing cost assistance as an incentive to attract buyers.

Can Closing Costs Be Negotiated?

Yes! Buyers and sellers can negotiate who covers certain expenses. In some cases, a buyer may request the seller to pay part of their closing costs, which is often referred to as a “seller concession.” Conversely, in a hot seller’s market, buyers might need to cover all costs themselves to make their offer more competitive.

How to Prepare for Closing Costs?

Real Estate Corners advises buyers to review their Loan Estimate provided by their lender early in the process to understand the breakdown of costs. Working with a knowledgeable real estate agent can also help buyers and sellers navigate negotiations and explore options for reducing closing expenses.

Final Thoughts

Understanding closing costs is essential for a smooth and stress-free real estate transaction. Whether you're a first-time homebuyer or a seasoned investor, working with an experienced real estate professional can make all the difference. This is especially true when buying a house for sale by owner, as navigating the closing process without an agent can be challenging.

For more information on buying or selling a home, contact Real Estate Corners at (612) 483-1230 or visit www.Realestatecorners.com.

About Real Estate Corners

Real Estate Corners is a licensed real estate company in Minnesota that has been operating since 2001. As pioneers in the flat-fee real estate market, they provide homeowners with two methods to sell their properties, helping them save thousands in commission fees. With over two decades of experience in both residential and commercial real estate, their team possesses the knowledge, expertise, and resources necessary to achieve outstanding results for clients of all sizes. Delivering top-notch service to every client is their utmost priority, and their highly skilled professionals are dedicated to supporting you throughout the entire process.