Closing costs are the fees and expenses that come with finalizing a real estate transaction. They’re paid at closing—the day the paperwork is signed and ownership officially transfers from seller to buyer.
Think of it this way: the home price is the headline number, but closing costs are the behind-the-scenes costs that make the transaction official and legally protected.
Common closing costs include:
- Lender fees (if you’re getting a mortgage)
- Title work and title insurance
- Appraisal and underwriting fees
- Escrow setup
- Recording fees paid to the county
- Property tax adjustments
- Attorney or settlement fees (when applicable)
Depending on whether you’re buying or selling, some of these costs will fall on you—and some will fall on the other party.
Who Pays Closing Costs: Buyer or Seller?
The short answer: both, but they usually pay for different things.
Here’s a simple breakdown:
Buyers Typically Pay…
If you’re buying a home (especially if you’re financing), your closing costs usually include the “loan-related” expenses.
Buyers commonly pay for:
- Loan-related fees (origination, underwriting, processing, etc.)
- Appraisal
- Credit report
- Title insurance (lender’s policy)
- Escrow account setup (for taxes and insurance, if required)
- Recording fees
How much do buyers usually pay?
In many cases, buyers pay around 2%–4% of the purchase price, depending on the loan type and the details of the transaction.
So on a $200,000 home, that could be roughly $4,000–$8,000.
(And yes—this is why we talk about it early, so there are no surprises.)
Sellers Typically Pay…
Sellers often pay a different set of costs, and their total can be higher because commission is usually included.
Sellers commonly pay for:
- Real estate commissions
- Title fees
- Transfer taxes (if applicable)
- Any agreed-upon buyer credits
- Prorated property taxes
Why can seller costs feel higher?
Because for many sellers, the real estate commission is the largest closing cost, and it’s typically paid out of the sale proceeds.
Can Closing Costs Be Negotiated?
Yes—absolutely. And this is one of the biggest reasons having the right Realtor in Lima, Ohio matters.
Here are a few common ways closing costs can change:
- Sellers may contribute to buyer closing costs (sometimes called “seller concessions”)
- Buyers may negotiate credits after inspections
- Some loan programs allow credits to be structured differently
That’s why every transaction is unique—and why blanket advice from the internet doesn’t always match real life.
Why We Go Over Closing Costs Early (So You Don’t Get Surprised)
The exact closing cost numbers depend on things like:
- Purchase price
- Loan type
- Down payment amount
- Negotiated terms
That’s why at Team Mangini Real Estate, we walk every buyer and seller through a clear cost estimate early in the process. Whether you’re trying to sell your home in Lima, Ohio or you’re looking at Lima, Ohio homes for sale, the goal is the same:
✅ Clarity
✅ Confidence
✅ No last-minute surprises
Final Thoughts
Closing costs are normal, expected, and manageable—especially when you know what to expect and have a guide who explains it clearly.
If you’re planning to buy or sell soon and want an easy-to-understand breakdown of your likely costs, we’re happy to help.
Thinking about buying or downsizing in Lima, Ohio? Reach out to Team Mangini Real Estate for expert guidance.