Who Pays Closing Costs and How Much Do They Actually Cost?

"Closing costs" is a catch-all term for the fees, taxes, and service charges that settle at the end of a real estate transaction. Buyers and sellers both have costs — and who pays what is partly customary, partly negotiable, and partly dictated by the purchase agreement you sign.

Typical seller costs in Indiana

• Title insurance and title company fees (varies by county and who orders title)
• Document preparation and recording fees
• Prorated property taxes through the closing date
• Any outstanding liens or payoffs on your mortgage
• Your broker or coordination fee (The Selling Table: $1,500 flat, paid at closing)
• Negotiated buyer credits or seller concessions, if agreed in the contract

Typical buyer costs

• Loan origination and lender fees, if financing
• Appraisal and credit report fees
• Homeowner's insurance premium for the first year
• Escrow reserves for taxes and insurance, if required by the lender
• Inspection costs (usually paid by the buyer when ordered)
• Recording fees and transfer taxes, depending on how the deal is structured

How much should you budget?

As a rough rule of thumb, Indiana buyers often budget 2–5% of the purchase price for closing costs when financing. Sellers typically see net costs in a tighter range — often 1–3% of the sale price when you include title work, taxes, and payoffs, but excluding your mortgage payoff itself. Every transaction is different; your title company's closing disclosure is the definitive number.

What is negotiable?

Almost anything can be proposed in an offer, but common negotiation points include who pays for the title policy, whether the seller provides a credit toward the buyer's closing costs, and how repair requests from an inspection are handled. The purchase agreement is where these allocations get locked in — which is why getting the contract right matters as much as agreeing on price.

FSBO does not mean skipping closing costs

Selling without a traditional listing agent saves the listing-side commission, but it does not eliminate title work, taxes, recording, or lender requirements. The advantage is control and transparency: you know exactly what you are paying for coordination ($1,500 flat — see services & pricing), and you are not giving up a percentage of your equity for work you may not need. FAQs cover common payment and timeline questions.