{"id":27766,"date":"2025-01-21T04:00:02","date_gmt":"2025-01-21T12:00:02","guid":{"rendered":"https:\/\/www.homelight.com\/blog\/?p=27766"},"modified":"2025-04-30T12:37:32","modified_gmt":"2025-04-30T19:37:32","slug":"do-cash-buyers-pay-closing-costs","status":"publish","type":"post","link":"https:\/\/www.homelight.com\/blog\/do-cash-buyers-pay-closing-costs\/","title":{"rendered":"Yes, Cash Buyers Pay Closing Costs, and Sometimes Even the Seller\u2019s Fees"},"content":{"rendered":"

Closing costs are assumed to be part of doing business in real estate, but do cash buyers pay closing costs? Yes, you can expect charges for attorney hours, taxes, and title fees to still apply, though the use of cash can greatly reduce a buyer\u2019s closing costs with the elimination of mortgage fees.<\/p>\n

Sellers may also get a break on closing costs when they accept an all-cash offer<\/a>, though it depends on who the offer comes from and how the deal came together. Investors paying cash are often willing to help cover a seller\u2019s closing costs, knowing that a seller facing financial hardship doesn\u2019t always have the funds to do so.<\/p>\n

In addition, many cash sales happen directly between seller and buyer, removing the average 3%-5.8% agent commission fee<\/a> from the seller\u2019s balance sheet.<\/p>\n\n\n\n\n\n

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HomeLight\u2019s Simple Sale platform can connect you with a nationwide network of trusted cash buyers, including fix-and-flip and buy-and-hold investors. You’ll also get an estimate of what a top agent might be able to get for your home so you can compare options.<\/p>\n \n

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Closing costs: Financed vs. cash buyers<\/h2>\n

After several years of renting, saving for a down payment<\/a>, and dreaming of backyard bliss, an aspiring homeowner decides it\u2019s finally the right time to buy. First, they\u2019ll probably need a mortgage! When you sell a house, this is the type of buyer you\u2019re most likely to encounter, considering 74% of recent buyers<\/a> financed their purchase.

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Buyer closing costs<\/h3>\n

When buyers purchase a home using a mortgage, they\u2019ll incur costs related to originating and processing that loan. These fees alone are usually 1%-2% of the loan amount but can go as high as 3% on top of attorney fees, title fees, and any additional settlement costs to purchase the home. Overall, buyer closing costs usually amount to 2%-5% of the home\u2019s price<\/a>.

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Seller closing costs<\/h3>\n

Sellers then have their own set of closing costs to pay, the biggest of which is agent commissions totaling 3%-6% of the transaction cost. This commission range includes the listing agent\u2019s fee of around 3% and the buyer\u2019s agent\u2019s fee \u2014 if the seller offers or the buyer negotiates for the seller to cover it<\/a>.<\/p>\n

Sellers may also chip in for transfer taxes<\/a>, title fees (it\u2019s common in some states for the seller to pay the buyer\u2019s title insurance, while the buyer covers the lender\u2019s title insurance), settlement fees, and incentives like a home warranty.

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Cash buyer closing costs example<\/h3>\n

The closing fees in all-cash real estate transactions are generally much lower. Here\u2019s an example of a settlement statement for a transaction between a local house-buying company in Huntsville, Alabama, and a seller in the area (with sensitive details redacted).<\/p>\n

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Source: (Jordan Fulmer<\/a> of Momentum Property Solutions)<\/figcaption><\/figure>\n

The seller paid nothing in closing fees in this example, while the buyer paid just under $1,500 in closing costs:<\/p>\n