07/14/2026
🏡 💡 Tip Tuesday: What Are Closing Costs & Who Pays Them?
One of the most common questions I get is: "What are closing costs, and who pays for them?"
The short answer is... both buyers and sellers have closing costs, but they each pay for different things.
🔑 Buyer Closing Costs (typically about 2–5% of the purchase price, but they vary):�• Loan origination and lender fees�• Appraisal�• Credit report�• Title insurance (depending on local custom and negotiations)�• Homeowners insurance premium�• Prepaid property taxes and insurance escrow�• Recording fees�• Attorney fees (when applicable)
🏠 Seller Closing Costs often include:�• Real estate commission (if agreed to in the listing agreement)�• Title-related fees (depending on local custom and negotiations)�• Transfer taxes (where applicable)�• Any unpaid property taxes, HOA dues, or liens that must be paid at closing�• Any negotiated seller concessions or buyer credits
🤝 Can closing costs be negotiated?�Yes! In Illinois, many closing costs are negotiable as part of the purchase contract. For example, a seller may agree to help with a buyer's closing costs, or each party may negotiate who pays certain title-related fees.
Every transaction is unique, so your exact costs will depend on your loan, the purchase agreement, and local practices.
Thinking about buying or selling in the Metro East? I'd be happy to walk you through what closing costs could look like for your specific situation!
📞 Allison Schott, REALTOR®�RE/MAX Alliance
(618)-334-5988�Serving the Metro East & surrounding communities
