Who is responsible for closing costs in a real estate transaction?

In a real estate transaction, closing costs can indeed be negotiated between both parties—the buyer and the seller. This allows for flexibility in the transaction and helps to accommodate the financial situations and needs of both parties involved.

Often, the buyer may expect to cover certain costs, like appraisal fees, loan origination fees, and other buyer-specific expenses. However, sellers may be willing to contribute by covering some of the closing costs as part of the negotiation to make the property more appealing or to facilitate the sale.

This negotiation process encourages communication and can lead to a mutually beneficial agreement. Hence, the ability for closing costs to be negotiated is a standard practice in real estate transactions, emphasizing the collaborative nature of buying and selling property.