When a home is sold, the buyer and seller incur various closing costs in addition to the sale price. Typical closing costs for a seller include excise taxes, transfer taxes, title insurance, real estate commissions and escrow fees. Buyers pay a variety of fees such as mortgage origination charges, title insurance, escrow, home insurance and property taxes.
Buyers and sellers can negotiate which party pays for various closing costs. Buyers who are obtaining a mortgage will receive an estimate of their closing costs from their lender called the Good Faith Estimate. Sellers can receive an esimtate of their closing costs from their real estate agent, called a net proceeds estimate.