How are closing costs typically split between the buyer and seller at closing?

The division of closing costs between the buyer and seller is primarily negotiated during the transaction and can vary greatly based on market conditions, local customs, and the specific agreement made between the parties involved. However, it is common in many real estate transactions for the buyer to be responsible for a larger portion of the closing costs, which can include expenses like loan origination fees, appraisal fees, and title insurance. This typical distribution often results in the buyer bearing a greater financial burden at closing compared to the seller.

While option C suggests that the buyer pays 75% of the closing costs and the seller pays 25%, this reflects a scenario where the buyer indeed takes on a substantial share of these costs, which is not uncommon in many transactions. Buyers often have a vested interest in assuming these costs to facilitate the purchase of the property, while sellers may negotiate to limit their own financial responsibilities in the deal.

In contrast, other options propose varying splits that do not align with the usual practices observed in many markets. The most accurate depiction of typical arrangements tends to reflect the higher percentage of costs borne by the buyer, especially in the context of competitive markets where buyers are motivated to close deals.