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Should You Pay for Your Buyer’s Closing Costs?
What Sellers Need To Know.
A few years ago, sellers could get away with saying “no” to just about everything.
No repairs.
No concessions.
No negotiation.
If buyers wanted the house, they pretty much had to take it on the seller’s terms. But now that inventory’s grown, negotiations are becoming a normal part of the process again.
That’s why one of the most important things sellers need to understand right now is this:
The goal isn’t to “win” every negotiation.
Sometimes, it’s worth meeting buyers where they are to get a deal done, fast. One example? Helping with a buyer’s closing costs.
Let’s break that down, so you know what to expect if it comes up in your sale.
What Are Buyer Closing Costs?
Closing costs are the extra expenses buyers pay on top of their down payment when they purchase a home. Freddie Mac gives some examples:
- Loan origination fees
- Appraisal and inspection costs
- Title and attorney fees
- Survey fees and more
Typically, buyer closing costs range from about 2% to 5% of the home’s purchase price. So, on the typical $400,000 home, that could mean anywhere from $8,000 to $20,000 out of pocket.
And in today’s affordability-challenged market, that upfront cash can be a major hurdle for some buyers – even if they can comfortably afford the monthly mortgage payment itself.
That’s why more people are asking sellers for help.
And More Sellers Are Saying “Yes”
According to the latest data from Zillow, 67% of sellers reported paying some or all of the buyer’s closing costs in 2025 (see chart below):
Now, that doesn’t mean every seller is doing it. And it definitely doesn’t mean every seller should. But it does show how common concessions have become as the market has shifted. And that’s important for you to know.
When Paying Closing Costs May Make Sense
This is where many sellers get stuck. They hear “help with closing costs” and immediately think: “Why should I pay for their expenses?”
But that’s not always the right way to look at it. You’ve got to consider who has the leverage in today’s market.
Redfin data shows there are more sellers than buyers active today. And that shifts the market dynamics (see graph below):
That doesn’t mean every market favors buyers. Far from it. In some areas, homes are still selling quickly and sellers have plenty of leverage. But in others, buyers have more room to negotiate than they’ve had in years.
That’s why local market conditions matter so much when you make your decision.
For example, helping with closing costs may be worth considering if:
- There are a lot of homes for sale in your area
- Your house has been sitting on the market longer than expected
- You’ve had showings, but no offers
- You’re motivated to move quickly
- Or you’re trying to keep a deal together during negotiations
After all, if it’s the thing that helps bring a serious buyer across the finish line, it could be well worth it.
Other Concessions You Could Offer Instead
Just remember, being flexible doesn’t mean saying “yes” to every request. It means understanding which compromises actually help you accomplish your goals. Because there are always alternatives.
Redfin suggests considering other concessions if you’re not interested in helping with closing costs, like:
- A home warranty
- Repair credits
- Flexible closing dates, or
- Leave behind appliances or furniture
The right answer depends on what buyers in your market are asking for and what matters most to you. That’s exactly why working with an experienced local agent is so important.
Bottom Line
The sellers having the most success today are the ones who understand the market has changed and are adapting to meet it where it is.
Sometimes that means negotiating on closing costs. Sometimes it means offering something else. The key is knowing which concessions are worth it for our local market.
If you’re wondering what’s normal in our area, what’s worth negotiating, and where it makes sense to stand firm, let’s connect.
30-Year Fixed Average 6.52%
Freddie Mac today released the results of its Primary Mortgage Market Survey® (PMMS®), showing the 30-year fixed-rate mortgage (FRM) averaged 6.52%.
“The 30-year fixed-rate mortgage averaged 6.52% this week,” said Sam Khater, Freddie Mac’s Chief Economist. “Stronger employment momentum has helped existing home sales reach a five-month high. Importantly, we’re seeing homebuyers look past the short-term rate fluctuations and actively enter the market, signaling renewed confidence in homeownership opportunities.”
- The 30-year FRM averaged 6.52% as of June 11, 2026, up from last week when it averaged 6.48%. A year ago at this time, the 30-year FRM averaged 6.84%.
- The 15-year FRM averaged 5.84%, up from last week when it averaged 5.79%. A year ago at this time, the 15-year FRM averaged 5.97%.
The PMMS® is focused on conventional, conforming, fully amortizing home purchase loans for borrowers who put 20% down and have excellent credit.
30-Year Fixed Rate Average Decline to 6.48%
Freddie Mac today released the results of its Primary Mortgage Market Survey® (PMMS®), showing the 30-year fixed-rate mortgage (FRM) averaged 6.48%.
“The 30-year fixed-rate mortgage decreased to 6.48% this week,” said Sam Khater, Freddie Mac’s Chief Economist. “With mortgage rates in the mid-6% range and income growth outpacing home price growth, housing affordability is marginally improving.”
- The 30-year FRM averaged 6.48% as of June 4, 2026, down from last week when it averaged 6.53%. A year ago at this time, the 30-year FRM averaged 6.85%.
- The 15-year FRM averaged 5.79%, down from last week when it averaged 5.87%. A year ago at this time, the 15-year FRM averaged 5.99%.
The PMMS® is focused on conventional, conforming, fully amortizing home purchase loans for borrowers who put 20% down and have excellent credit.
30-Year Fixed Mortgage Rates Average 6.53%
Freddie Mac today released the results of its Primary Mortgage Market Survey® (PMMS®), showing the 30-year fixed-rate mortgage (FRM) averaged 6.53%.
“The 30-year fixed-rate mortgage averaged 6.53% this week,” said Sam Khater, Freddie Mac’s Chief Economist. “Pending home sales have increased three months in a row, indicating there’s latent demand and homebuyers are ready to jump back into the market if mortgage rates decline.”
- The 30-year FRM averaged 6.53% as of May 28, 2026, up from last week when it averaged 6.51%. A year ago at this time, the 30-year FRM averaged 6.89%.
- The 15-year FRM averaged 5.87%, up from last week when it averaged 5.85%. A year ago at this time, the 15-year FRM averaged 6.03%.
The PMMS® is focused on conventional, conforming, fully amortizing home purchase loans for borrowers who put 20% down and have excellent credit.
The Truth About Affordability Today
Let’s be real with each other for a second about affordability. Because you deserve someone who will be honest and transparent about what’s going on, especially if you’ve got a move on your mind.
Here’s the full picture of what’s happening and why. The good – and the bad. So, you know what it truly means for your move. Because while rates are certainly a big part of affordability, they’re not the only factor at play.
Mortgage Rates Have Been Rising
After a year or more of rates trending down, they’ve started to climb again. And, if you’re looking to buy, that’s not what you want to see. But it has happened. And here’s why.
Uncertainty is the enemy of mortgage rates.
And with lingering global uncertainty, ongoing tensions in the Middle East, and inflation refusing to fully cool off, there’s a lot that’s having an effect on rates. Colin Robertson, Founder of The Truth About Mortgage, put it plainly:
“You can’t have $100 a barrel oil and not expect inflation to rise, which translates to higher bond yields and mortgage rates.”
Take a look at the graph below. It uses data from Mortgage News Daily to show just how much all of those factors have had an impact:
It’s a pretty sharp contrast from where we’ve been, in a relatively short window. And it’s probably making you wonder: Should I just wait this out? Will rates fall when the uncertainty eases?
It’s possible. But it all depends on how the ongoing geopolitical conflict plays out and whether inflation continues to run hot afterwards – and for how long.
Rates probably aren’t heading down until both of those things improve. And even when that does happen, experts agree rates likely won’t be dramatically lower – maybe in the low to mid-6s. That’s the reality, and it’s worth knowing.
So, should you wait for lower rates? The general consensus is, if you can afford to buy and you find a home you like, it’s still worth it. Because no one knows for sure when rates will start to come back down – and how long do you really want to put your life on hold?
Wages Are Outpacing Home Prices
You’ve probably heard that inflation is making everything more expensive, and there’s no shortage of headlines about the cost-of-living outpacing paychecks. It’s a legitimate concern. And maybe you’re feeling the pinch yourself. But here’s what doesn’t make the headlines. It’s not all bad news.
Data from the Federal Reserve Bank of Atlanta and Redfin shows wages have actually been growing faster than home prices.
- Recently, wages have been increasing at around 4% year-over-year.
- And home price growth is closer to 2% year-over-year.
As a buyer, you want your income to rise faster than prices because that helps make your purchase more manageable financially, and it quietly chips away at the affordability challenge over time. That’s exactly what we’re seeing lately. And every little bit is going to help.
A big reason wages have been gaining ground on home prices? Home prices have actually stayed pretty steady.
Existing Home Prices Have Held Steady
Check out the graph below. It shows home price data from the National Association of Realtors (NAR) over the past 4 years. Notice anything? There’s been no dramatic runup, and no crash either. Just relative stability and slow growth:
Part of what’s keeping prices this stable is that buyers finally have more choices. That means less competition, more negotiating power, and more time to find the home that actually fits your life, not just the one you had to grab before someone else did.
And that gives you a chance to hopefully find something that works for your budget, even with today’s rates. At the same time, you’re not losing ground pricewise while you take time to make a careful decision.
Bottom Line
Yes, rates have been volatile, and global instability is keeping them from settling down anytime soon. There’s no sugar coating that. But the full picture of affordability is more nuanced than the headlines suggest.
Want to run the real numbers for your situation? Let’s talk. Reach out and let’s set up a quick, no-pressure conversation.
Mortgage Rate Averages Up This Week
Freddie Mac today released the results of its Primary Mortgage Market Survey® (PMMS®), showing the 30-year fixed-rate mortgage (FRM) averaged 6.51%.
“The 30-year fixed-rate mortgage averaged 6.51% this week,” said Sam Khater, Freddie Mac’s Chief Economist. “As rates fluctuate, aspiring buyers should remember that by shopping around for the best mortgage rate and getting multiple quotes, they can potentially save thousands.”
- The 30-year FRM averaged 6.51% as of May 21, 2026, up from last week when it averaged 6.36%. A year ago at this time, the 30-year FRM averaged 6.86%.
- The 15-year FRM averaged 5.85%, up from last week when it averaged 5.71%. A year ago at this time, the 15-year FRM averaged 6.01%.
The PMMS® is focused on conventional, conforming, fully amortizing home purchase loans for borrowers who put 20% down and have excellent credit.
Record High Mortgage Debt Sounds Scary. Here’s What the Headlines Leave Out.
You may have seen the headlines lately about mortgage debt in America hitting a record high. And maybe your brother-in-law brought it up at the dinner table like he’s been waiting all week to spark a debate.
Here’s the thing. He’s not wrong. But he only has half the story. And the half he’s missing? It changes everything.
Spoiler: homeowners are on stronger footing than the headlines suggest, and the housing market has more going for it than most people realize.
The Headline Number Is Real, But It’s Missing Context
Yes, according to the Federal Reserve, there is currently about $14 trillion in mortgage debt in the United States. That is an all-time high. And when you hear that alongside stories about people struggling to pay their bills, it’s easy to assume the worst.
But here’s what the data actually shows (see graph below):
This chart from the Federal Reserve tracks three things from 2000 to today: the total value of all U.S. homes (the green line), the equity homeowners hold in those homes (the blue line), and the total mortgage debt owed on them (the orange line).
Right now, home values sit at $47.9 trillion. Homeowner equity is at $34.1 trillion. And the mortgage debt everyone’s worried about? It’s $14.4 trillion.
Debt is at a record high, sure. But the equity homeowners have built up is more than double that number, and it’s also near a record high.
Here’s the part worth pausing on. See the years between 2008 and 2013 where the orange line was higher than the blue one? That’s when the housing market was in genuine trouble. When debt exceeds equity like it did back then, homeowners have no cushion.
So, when prices dropped in 2008, millions of people owed more than their homes were worth and had nowhere to go. That’s what a housing crisis actually looks like. That’s not what’s happening today. Right now, it’s just the opposite.
The gap between what people owe and what they own has never been wider – in a good way. Today, they have far more equity than debt.
Most Homeowners Are in a Rock-Solid Position
So, we know equity is high nationally. But what does that actually look like at the individual homeowner level? This next chart uses data from ATTOM and the Census to put it in perspective:
Out of all owner-occupied homes in the country, 33.3 million are owned completely free and clear – no mortgage, no lender, no risk of foreclosure. Another 22.3 million homeowners have more than 50% equity in their homes.
Add those together, and you’re looking at nearly two-thirds of all homeowners who have either paid off their mortgage entirely or have such a substantial equity stake that they’re in an extremely stable position.
The remaining slice – 29.1 million homes with less than 50% equity – isn’t a sign of distress, either. That includes plenty of people who recently bought, are building equity over time, and are doing just fine.
The point is this isn’t a market teetering on the edge. It’s a market built on an unusually strong foundation.
Bottom Line
Record mortgage debt makes for a scary headline. But context matters.
Equity is near an all-time high, home values have surged, and the vast majority of homeowners are in a position of real financial strength. The conditions that made 2008 a crisis simply don’t exist right now.
If you’re wondering what all of this means for your situation, whether you’re thinking about buying, selling, or just trying to make sense of the market, reach out anytime. No pressure, just answers.
