In need of assistance with "Closing Costs"

[Sipho Mogopudi]

Hello everyone! My name is Sipho Mogopudi, I'm a newbie in Real estate investment.

There's a concept often used in real estate arena: "Closing Costs." I really need assistance of the actual meaning of the concept, especially when one says "...the seller to pay the majority of the 'closing costs'."

[Michael Dumler]

@Sipho Mogopudi closing costs are simply fees and expenses that the buyer usually pays when he/she purchases a home. Closing costs can run anywhere from 2-3% of the pruchase price and include cost items such as, loan origination fees, appraisel and survey fees, title/homeowner insurance, escrow fees, attorney fees, etc... 

Your lender is required to give you an estimated number.  

"Seller to pay the majority of closing costs" - great! Negotiation was favorable in the buyer's case and thus he/she will have a reduction in closing costs. Given current market conditions, we're less likely to see this.