Who pays what?
Just about everything in real estate is negotiable.
Depending on what area you live in, there are customary fees for sellers to pay, and there are fees for buyers to pay. But they are not law. Anyone can pay for anything as long as the principle parties agree. In the Southern California area, it is customary for the seller to pay for title insurance. A one-year home warranty plan is usually paid by the seller. Escrow fees are split so that buyer and seller pay their own portion of the escrow fee. Again, even if it is customary, it is negotiable. I had a case where the buyer was getting such a sweet deal on the price that he agreed to pay all the seller’s closing costs.
On the other hand, I once had a seller say he didn’t want to pay for title fees. But he wasn’t giving up anything in exchange. That won’t sit right with the buyer when he knows another seller down the street will pay the title fees. So it is no use to negotiate unless you are willing to give and take. Otherwise you kill the deal by going against normal accepted practice.
Some sellers will agree to pay a portion of the buyer’s closing cost. How much the seller is willing to pay depends on the price and terms that are offered. If the seller gets what he wants, he may be willing to give the buyer what he wants in closing costs. The assistance with costs can be negotiated as a percentage of the selling price, such as “2% of nonrecurring closing costs.” Or it can be negotiated as a flat fee, such as “seller will credit buyer $5,000 towards nonrecurring closing costs.” Most lenders will not allow the buyer to get more than 3% of the selling price. Otherwise the buyer might end up with money in his pocket.