What costs are paid by the seller?
Costs covered by the seller generally include concessions, commissions and miscellaneous costs.
Seller’s concession consists of closing costs that are normally covered by the buyer, but these costs can be negotiated to see if the seller is willing to cover some of them. For example, after a home inspection is completed, if there are some expensive repairs that need to be made a buyer can request that, in-lieu of paying for the repairs, that the seller cover some of their expenses at closing. Or, the seller’s concession can be worked into the original contract if the buyer is willing to pay a higher price for the seller’s home. (Although this may increase the buyer’s monthly mortgage payments, they can save hundreds and thousands in upfront fees at the closing.)
They will also be paying percentages of the sale to both the buyer’s and seller’s agent. (The percentage of the sale of the home is split between the two agents.)
They may also cover miscellaneous costs that come-up during the process. These costs can include the owner’s title insurance policy, termite reports and/or repairs, etc.