Who pays closing costs, the buyer or the seller?

Both buyers and sellers pay closing costs, but the specific amounts and responsibilities vary by the transaction. Buyers typically pay for loan origination fees, appraisal, credit report, title insurance for the lender, escrow and recording fees, and upfront property taxes and insurance. Sellers usually pay the real estate commissions, owner's title insurance policy, and any agreed-upon buyer concessions or repairs. In Arizona it's common for buyers to request that the seller contribute toward their closing costs as part of the offer negotiation. The AAR purchase contract specifies which party pays each fee, and these are negotiable points in your offer.