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How Often Do Seller’s Pay Closing Costs? . . . . . Never.
The role of closing costs in a purchase agreement can be confusing both for buyers and sellers.  In the present market, it is customary for there to be sales concessions.  A real estate sales concession can be many things including but not limited to price, repairs and yes, . . closing costs.  Asking the seller to pay for closing costs, pre-paids and discount points is common.  At the end of the day though, a buyer may have several value added considerations such as seller paid closing costs and repairs after an inspection contingency but the seller will (or at least should) always negotiate on the basis of what their net proceeds after all concessions will be.
The term seller paid closing costs is really a misnomer though.  A more appropriate name would be buyer financed closing costs.  This is because despite the fact that it can appear that the seller is paying for them, this isn't the case.  The buyer always pays for closing costs but the question is how.  Will the buyer have them rolled into the purchase price or pay for them with cash out of pocket or a combination of the two?  These are the choices.  No matter ... more

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