When you sell a home, there’s more involved than just agreeing on a price. One of the most common questions sellers have is, “Will I have to pay closing costs if I’m selling my home for cash?” The short answer is—it depends. Closing costs are the fees and expenses that come with finalizing a real estate transaction, and they apply whether a buyer is paying in cash or getting a mortgage. However, selling to a cash buyer can often change how much you pay, and in some cases, you may pay nothing at all.
No Realtor Commissions
In a traditional home sale, closing costs for the seller often include things like real estate agent commissions, title insurance, transfer taxes, recording fees, and possibly repair credits to the buyer. These can add up to anywhere from 6% to 10% of the home’s sale price. When selling for cash—especially to an investor or home-buying company—many of these expenses can be reduced or eliminated. This is because cash buyers often purchase homes as-is and cover most of the closing costs themselves as part of the deal. If you would like more information about selling your house without a realtor, see our blog Can I Sell My Home Without a Realtor?
Sell Your House As-Is
One of the main reasons sellers choose a cash sale is the simplicity of the process. Without a lender involved, there’s no need for bank-required inspections or appraisals, which can save both time and money. Many cash buyers will also pay for things like title search, escrow fees, and attorney costs. That said, it’s important to clarify exactly what the buyer is covering before signing the purchase agreement so there are no surprises at the closing table.
Property Taxes and HOA Dues
In some cases, sellers still choose to pay certain closing costs even in a cash sale. For example, you might agree to cover prorated property taxes, homeowners association dues, or recording fees. These are typically smaller amounts compared to what you’d pay in a traditional sale, but they can still be part of your final expenses. If you’re selling to a private individual paying cash rather than a professional home buyer, you may also have more negotiations about who pays for what. If you are selling to a cash home buyer, you may be able to negotiate that they pay all the taxes and HOA fees for the current. That will put more cash in your pocket.
Cash Home Buyers
One of the best parts about a cash sale is flexibility. Unlike traditional transactions, where closing costs are often split in a fairly standard way, a cash sale allows the terms to be customized to fit both parties. Many investors advertise “no closing costs” as part of their offer, which means they’re absorbing all the fees in exchange for getting a better price on the home. This can be a win-win if your priority is selling quickly and keeping more cash in your pocket.
On a recent cash home buying transaction we did, the only thing the seller had to pay for was $75 for the attorney to prepare the deed, $25 for the attorney to record the deed, and $50 to wire the proceeds to the home seller. We paid for all of the current year’s real estate taxes.
If you’re not familiar with cash home buyers, cash home buyers are real estate investors who will pay cash for your house and close quickly. This fast closing ensures you get cash quickly while giving you flexibility when moving. Cash home buyers typically buy your home as-is, so you don’t have to put any money into repairs. For tips on selling your house to a cash home buyer, see our blog How to Sell Your Home for Cash: A Comprehensive Guide
In the end, whether you have to pay closing costs when selling your home for cash comes down to the agreement you make with the buyer. While some costs may still fall on you, many sellers find that cash buyers are willing to take care of them entirely, making the sale faster, simpler, and less expensive. The key is to review your contract carefully, ask for a breakdown of all fees, and make sure you understand exactly what you’ll walk away with on closing day.
