Who Typically Pays Closing Costs in Richmond, VA? Complete 2025 Buyer vs Seller Guide

Recent reports show that more than eight in ten homebuyers consider the down payment and closing costs their biggest hurdles to homeownership.

From our experience, this is often where confusion begins—when excitement meets the fine print of a real estate transaction. So, who typically pays closing costs in Richmond, VA? That’s exactly what this guide will clear up.

We’ll walk through what buyers and sellers each cover, how the rules shifted in 2025, and what practical steps can help keep more money in your pocket when it’s time to sit at the closing table.

This article builds on topics we’ve explored before, including great wealth transfer statistics, which explain how generational money trends shape homeownership opportunities. 

It also connects with our upcoming discussion on transfer taxes and how they influence your net proceeds after selling.

And for a broader look at what drives home prices and ownership trends, you can check out our post on housing affordability, a topic for anyone entering today’s property market.

In the next sections, you’ll learn how average closing costs are calculated, why they differ depending on your home’s purchase price, and the best ways to plan ahead so you can move confidently toward your next set of keys.

Let’s start!

Who Pays the Realtor Fees? A Guide to the New Rules

Let’s get straight to the heart of the matter. The age-old question in any deal is, which fees fall to the buyer or the seller? The traditional split isn’t a 50/50 proposition. It’s more like a menu where each party has their own set of closing costs to cover.

This structure can vary depending on your local customs and what you negotiate in your purchase agreement.

The Traditional Split Of Fees

In a standard real estate transaction, the division of labor is clear. Buyers typically pay for costs directly tied to their mortgage loan. Think of these as the bank’s setup charges. Sellers, on the other hand, cover expenses linked to transferring the property’s ownership.

They also traditionally handled the real estate agent commissions. This is why the net amount a seller receives is less than the final home’s purchase price.

What Buyers Pay At Closing

A buyer’s closing costs are numerous. They include loan origination fees from the lender, appraisal fees to determine the home’s value, and lender’s title insurance to protect their bank.

You’ll also see escrow fees for the neutral party managing the transaction. Buyers are also on the hook for upfront homeowners insurance premiums and property tax payments into an escrow account.

All these closing fees mean buyers pay closing costs that typically add up to 2% to 5% of the loan amount. That’s a substantial chunk of change on top of your down payment.

What Sellers Pay At Closing

Seller closing costs are no joke either. A major item has always been the real estate agent commission. Following recent industry shifts, who pays the realtor fees is now a flexible point of negotiation.

Sellers also pay for the owner’s title insurance policy, which protects the new owner against future claims. They cover government-imposed transfer taxes and recording fees to update property records.

Don’t forget prorated property taxes owed up to the sale date. If the home is in a homeowners association (HOA), the seller will often need to cover any transfer fees.

So, yes, sellers pay closing costs too, which answers the common question, “does the seller pay closing costs?” They absolutely do.

The New Rule: NAR Settlement Impact (2024)

The rules of the game changed in August 2024. This is a big deal. Buyer agents now must have a written agreement with their clients that clearly outlines their compensation. You can no longer find agent commissions advertised on the MLS.

This change makes the question of who pays the realtor fees entirely negotiable within the purchase agreement. It gives both buyers and sellers more clarity and bargaining power. We are already seeing new strategies emerge.

Some sellers are opting to offer lower concessions instead of paying a full commission.

Does the Seller Pay Closing Costs? Unveiling Seller Responsibilities

So, do they? Absolutely. For sellers, they are direct deductions from your final profit. This is crucial for setting a realistic listing price and accurately forecasting your net proceeds from the real estate transaction.

A Seller’s Financial Checklist at Closing

Your final settlement statement is a detailed accounting of every dollar you owe. The goal is to move from the gross sale price to your net take-home amount. Here’s a breakdown of the primary seller closing costs you will encounter:

• Real Estate Commissions: This is often the largest expense. While now fully negotiable, this covers the listing agent’s fee and potentially the buyer agent’s fee, as detailed in the purchase agreement.
• Owner’s Title Insurance Policy: This one-time fee protects the new homeowner against future ownership claims. The seller almost always pays for this policy.
• Transfer Taxes: These are state or local government taxes charged for the privilege of transferring the property deed to the new owner. The amount can vary depending on your location.
• Recording Fees: Your county charges a fee to record the deed and other documents that officially make the buyer the new owner.
• Prorated Property Taxes: You are responsible for the property taxes up until the day of closing. The escrow company will calculate your share and deduct it from your funds.
• HOA Fees: If your property is part of a homeowners association, you’ll need to pay any outstanding fees and often a transfer fee to move the account to the buyer.
• Seller Concessions: In some deals, you might agree to contribute to the buyer’s closing costs to help the deal move forward. These are called seller concessions and are a powerful negotiation tool.

Most Common Closing Costs For Buyers And Sellers

Now that we know who is generally responsible for what, let’s pop the hood and look at the most common closing costs individually. This list details the typical closing costs you will likely see on your settlement statement.

These fees charged can feel like a lot, but each one has a specific purpose.

Loan-Related Costs (Paid by the Buyer)

These are all the costs associated with securing your home loan. Your mortgage lender charges loan origination fees for processing the application. You might pay discount points to buy down your interest rate.

The lender will also charge for an appraisal and underwriting. A frequently overlooked cost is paying interest for the period between your closing day and the first of the next month.

• Loan Origination Fee: This is the lender’s charge for creating the loan.
• Appraisal Fee: This pays for a professional assessment of the home’s market value.
• Upfront Interest: You pay interest from your closing date until the end of the month.

Title And Insurance Costs

This category is all about protection and verification. The escrow company or attorney will perform a title search to ensure the property has a clean history. The buyer pays for the lender’s title insurance policy.

The seller pays for the owner’s title insurance policy for the buyer. These associated fees typically range from $1,000 to $3,000, but they costs vary by location and home’s sale price.

Property-Related Fees

These costs ensure the property itself is insured and its taxes are handled. Lenders require you to prepay the first year of homeowners insurance. If your down payment is less than 20%, you’ll need private mortgage insurance (PMI).

You will also prepay several months of property tax payments into an escrow account. The seller will cover their share of prorated property taxes up to the closing date.

We always advise clients to get quotes for homeowners insurance early. This avoids last-minute scrambles. You must show proof of insurance at closing.

Government And Recording Fees

These are the public costs to make the sale official. Transfer taxes are a common expense, essentially a sales tax on the property deed. The amount of these transfer fees depends on your state and city. 

Recording fees are paid to the local county to file the new property records and make the new owner official. These miscellaneous fees are non-negotiable but are usually a smaller portion of your total purchase price.

The final tally for all these closing costs will always vary depending on your specific situation.

Smart Strategies to Save Money on Your Closing Costs

You have more control over your closing costs than you might think. A proactive approach can lead to significant savings. Let’s explore some powerful tactics to reduce your upfront expenses and keep more cash in your pocket.

Negotiate Seller Concessions

One of the best ways for a buyer to save money is to ask for seller concessions. This means the seller agrees to pay for a portion of the buyer’s closing costs. This request is most effective in a buyer’s market.

The specifics must be clearly written into the purchase agreement to appear on the final closing documents.

• FHA loans allow concessions up to 9% of the home’s value.
• Conventional loans typically limit them to 9%.
• Some sellers opt to cover these costs to make the deal work smoothly.

Imagine you’re buying a $300,000 home. You could ask the seller to contribute $9,000 toward all the closing costs. This dramatically reduces your cash needed at the closing table.

Shop For Better Rates And Services

Do not just accept the first estimate you receive. Lender fees and service charges can differ widely. Get quotes from at least three different mortgage lenders. Compare their origination fees line by line.

Ask your title escrow company if they offer a flat fee structure instead of à la carte pricing. A little research here can save you thousands. These fees charged are not set in stone.

Time Your Closing Strategically

The date you choose for your closing day can impact your wallet. Schedule it for the end of the month. This minimizes the prepaid interest you must bring to the table. You’re only paying interest for a few days instead of three weeks.

Another option is to roll some costs into your loan amount. This increases your mortgage payments slightly but lowers immediate cash outlay.

Reduce Out-of-Pocket Costs

Several programs can ease the initial financial burden. For example, you can ask your lender for credits to offset costs in exchange for a slightly higher interest rate. You can also explore no-closing-cost loans if you prefer minimal upfront expenses.

Many states and local governments offer down payment assistance programs that also help with additional expenses. Your loan type and location will determine what help you can get. These costs vary, so it pays to investigate all options early in the closing process.