Objections

When a seller asks if he or she will pay closing costs

When a seller asks if he or she will pay closing costs, explain that in a cash "as-is" transaction, the seller typically covers some customary fees, like title insurance and transfer taxes, but this is always part of the negotiation. Be transparent about what those costs generally entail without quoting specific figures.

October 15, 2026 · 4 min read

The standard practice for cash "as-is" deals

In a typical cash, "as-is" real estate transaction, both the buyer and seller have certain closing costs. For the seller, these often include things like title insurance, escrow fees, pro-rated property taxes, and transfer taxes or recording fees, depending on the state and county.

You can explain that these are customary expenses associated with transferring ownership of a property. Frame it as part of the normal process, not an unusual request from you.

It is important to clarify that you are offering a quick, hassle-free sale, and these costs are standard for any transaction, regardless of the buyer. This is not legal advice; consult with a real estate attorney for details specific to your jurisdiction.

Why sellers ask about closing costs

Sellers often ask about closing costs because they are focused on the net amount they will receive at closing. They may not have sold a property recently, or ever, and are unfamiliar with the process.

He or she might be comparing your offer to what he or she expects to net from a traditional listing, where an agent's commission is the largest cost. Your job is to educate him or her without overwhelming.

The question usually comes from a place of uncertainty about the total expenses. Reassure the seller that you can outline what is generally involved, but that specific amounts are handled by the title company or closing attorney.

Explaining the difference in costs (buyer vs. seller)

You can explain that as the cash buyer, you have your own set of closing costs, such as lender fees if you are using transactional funding, or recording fees for the deed. The seller also has his or her own costs.

Focus on the seller's side. Mention items like outstanding liens, property taxes owed up to the closing date, and potentially the cost of a title policy to ensure a clear transfer of ownership.

Emphasize that the title company or closing attorney is the neutral party who will detail all final costs to both sides. You are not the one determining these amounts.

How to factor it into your offer

When you determine your maximum allowable offer (MAO), you already account for all expected costs, including what the seller typically pays. This means your offer is already net of those expenses.

You do not need to raise your offer if the seller asks about closing costs. Instead, you explain that your offer is based on the assumption of customary seller-paid costs.

If a seller insists that he or she cannot pay any closing costs, you have two options: either the offer needs to be reduced to cover those costs for him or her, or you walk away. Stick to your numbers.

When to suggest a split or adjustment

Sometimes, a seller is close to accepting your offer but is hung up on the closing costs. In these situations, you might consider offering to pay a portion of his or her costs, but only if your numbers still make sense.

This is a negotiation tactic, not a standard practice. Any amount you cover for the seller comes directly out of your profit. Therefore, you must have enough margin in the deal to absorb it.

Another approach is to adjust the purchase price slightly higher to cover a specific closing cost for the seller, again ensuring your MAO is not exceeded. For example, you might increase the purchase price by a hypothetical $1,000, explicitly stating that this covers a specific seller cost.

Important note: not legal, tax, or financial advice

This information is for educational purposes only and is not intended as legal, tax, or financial advice. Real estate laws and customary closing costs vary significantly by state and local jurisdiction.

Always consult with a qualified real estate attorney, tax professional, or financial advisor for advice tailored to your specific situation and location.

Ensure you understand all contractual obligations and local regulations before making or accepting any offer related to real estate transactions.

Questions people ask

What are "customary" seller closing costs?

Customary seller closing costs often include things like title insurance, escrow fees, pro-rated property taxes up to the closing date, and state/county transfer taxes or recording fees.

Can I offer to pay all closing costs?

You can offer to pay all closing costs, but understand that any costs you cover for the seller will come directly out of your profit. Only do this if your numbers still make the deal worthwhile for you.

Will a seller walk away over closing costs?

A seller might walk away if he or she feels the closing costs are excessive or if he or she is unable or unwilling to pay them. Be prepared to explain the standard process and stick to your numbers.