In a buyer's market it has become a common occurrence for the buyer to ask the seller to pay for closing costs, and most realtors are well versed when negotiating this issue. Although, if the buyer does not have to come up with the funds for these costs, the sales price of the property may go up to cover them. When negotiating the sales price, the buyer usually will not ask for more than 3% even though the seller can contribute up to 5%. This is all relative to the type of loan that the buyer has qualified for. In a buyer's market asking the seller to pay closing costs is a common practice only because most properties may not be holding their true values. This statement brings up a good point in that, if the seller ups the sales price to cover the buyer's closing costs, the appraisal for the home must be within fair market value in order for the lender to agree on financing the home.

Furthermore, it is important for the buyer and the seller to have agreed upon the specifics of the contract before closing. The contract must be specific, especially, when disclosing the exact numbers and descriptions of all closing costs in conjunction with the sales prices.

Moreover, searching for an experienced realtor is just as important as searching for an ethical lender. The home buyer must do their homework when choosing a realtor, experience and track record are key components. The home buyer must ask questions and understand the entire process of buying a home as well as understanding all disclosures and terms within the contract, including the specifics of the closing costs. Remember, the seller may not always be willing to cover the closing costs; every transaction is different so every deal will not be the same.