Who Pays Closing Costs In A Cash Sale?

selling a house to a cash buyer

During a cash sale, the closing costs are paid for by the buyer. This can differ depending on the type of buyer you’re working with, but the advantage of working with an all-cash buyer like Trusted House Buyers is that we cover all closing costs. This gives sellers the same advantage as non-cash sales, where the buyer has to pay the fees, including mortgage fees, appraisals, and buyer assessment fees. 

The closing costs associated with a cash sale can also change depending on the agreement between the buyer and seller. In fact, cash sales are pretty common in places like San Diego where the housing market is high, and buyers want to get an edge over other buyers. 

As a seller, that’s a win, since cash sales result in less paperwork, and you’ll finalize the sale faster. Before you sign the papers, it’s important to understand who normally pays for which costs with cash sales. This article will explain the ins and outs of closing costs and what you may need to pay when working with other buyers.

What Are Closing Costs?

Before we delve into what fees are associated, it’s important to understand what closing costs are. In a nutshell, closing costs are the fees incurred throughout the process of closing on a home. This can be lender-related fees when a buyer takes out a mortgage, taxes, appraisal fees, and more. They must be paid when you transfer the title deed over to the new home-owner. In San Diego, closing costs generally range between 2% and 5% of the total home purchase price.

If a buyer is taking out a loan to purchase your home, closing costs are usually split between the two parties. Traditionally, the buyer tends to pay the bulk of the amount since most of the fees are mortgage-related and are helping them finance the purchase of your home. Finding a buyer that can pay cash in full, without the need of outside financing, helps both ends of the transaction as there are no additional fees and allows a much faster closing process.

What Are The Closing Costs Paid By Seller?

 In the case of a cash sale with us, there are no hidden, last-minute fees like other “Sell my house fast” companies – we handle all closing costs associated with the sale, period. 

If you’re working with real estate agents, you as the seller would need to pay the real estate commissions for both you and the buyer’s agents. This is typically around 6% of the total purchase price, with 3% going to your agent and 3% to the buyer’s agent. 

In addition to that, you would normally need to pay transfer tax or title fees. Other closing costs could include title insurance, HOA fees, and attorney’s fees. Not all states require an attorney to conclude the sale, and it’s not required in California. The seller is responsible for the bill when working with other companies or buyers.

What Are The Closing Costs Paid By The Buyer?

In the case of a non-cash sale, buyers have to pay several fees that could include: mortgage costs, property tax in appraisal and home inspections fees.

Buyers need to pay mortgage insurance fees if they have less than 20% of the down payment, along with a credit monitoring fee. In addition, there are other miscellaneous costs like mail and courier fees that are a normal part of the transaction.

However, it’s a whole different ball game with a cash sale, as a cash sale can nullify these costs. If there isn’t any mortgage, insurance, or property tax, the buyer is off the hook and pays for almost no closing costs. That’s why it’s important to understand all of the fees associated with a cash sale, and who is usually responsible for them.


The process of selling a home for cash is almost always quicker and requires less work as a seller than a non-cash sale transaction. Not only is the paperwork much simpler, but we cover all closing costs associated with buying your home. Regardless of what industry standards are for cash sales, we work with homeowners to make the process as easy as possible for you and give you the best cash offer. 

A large portion of traditional closing costs can come from working with real estate agents and their associated commissions. If a buyer has to finance the purchase of your home, that also adds on fees, delays, and other complications to a sale. Regardless of who typically pays for fees, we guarantee to our sellers a fast and efficient closing on your home: all cash, with all fees covered by us, with no real estate agent commissions to worry about.

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