Redfin
FEBRUARY 20, 2025
On average, sellers typically pay between 6% and 10% of the homes sale price in total closing costs. This percentage includes real estate agent commissions, title insurance, escrow fees, and potential seller concessions. Heres a general estimate of different seller closing costs: Expense Typical Cost Who Pays?
The Mortgage Report
JULY 1, 2025
Determine what you can afford by estimating your homeownership costs, which means principal and interest payments as well as property taxes, homeowners’ insurance, and maintenance/repair costs. It also lets you keep more cash for other important expenses like repairs, furniture, and maintenance.” Create a realistic budget. Go lender shopping.
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Redfin
JUNE 10, 2025
Offer seller concessions or financing: Instead of reducing the core price, you might offer seller credits toward the buyer’s closing costs. While less common, seller financing, where you act as the lender for a portion of the loan, could also be an option to bridge the gap.
Housing Wire
JANUARY 11, 2023
With a mortgage rate buydown, the seller’s concessions are put in an escrow account, used monthly to make up the difference in interest due between the bought-down interest rate and the permanent fixed interest rate. Unused funds at the time the borrower refinances go against their loan balance as a principal reduction.
Housing Wire
JANUARY 17, 2024
But unlike financing with a traditional mortgage, monthly principal and interest payments are not required on the loan, so long as the homeowner keeps up to date with real estate taxes, homeowners’ insurance and property maintenance. They own the home with their name on the title, as with any mortgage, traditional or reverse.
Housing Wire
NOVEMBER 7, 2023
Not helping FHA, VA borrowers get off the sidelines Under current FHA rules, sellers can contribute up to 6% in concessions to FHA borrowers to cover closing costs, prepaid expenses and discount points. The Department of Veterans Affairs (VA) rules prohibit VA borrowers from paying real estate commissions.
Housing Wire
SEPTEMBER 16, 2022
UWM announced that its temporary rate buydowns – fueled by seller concessions – would reduce borrowers’ interest rates by up to 2% for the first two years of a mortgage. Rocket said that a homebuyer with a $400,000, 30-year fixed rate mortgage with 5.75% interest would generally pay about $2,334 in principal and interest.
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