Typically, home buyers will pay between 3 to 6 percent of the purchase price of their home in closing fees on the real estate portion. In addition, most home buyers will also pay between 2 to 4 percent of the loan amount they are taking a mortgage for the home they are purchasing.
On average home buyers who finance their home purchases are spending between 5 to 10% in closing costs. Some may argue that the seller pays for the real estate commissions and not the buyer which is true in some instances but that all depends on which perspective lens you choose to look through and the details on how your transaction is structured within each industry real estate and mortgage.
Below we offer a chart that makes it easy to see which party, buyer or seller is responsible for paying at closing. These individual figures are defined as closing costs.
This information is also shown on an industry form called a Settlement Statement Hud-1