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Do Cash Buyers Pay Closing Costs On a Cash Sale?

Do Cash Buyers Pay Closing Costs On a Cash Sale?

The UHS Team

Nov 17, 2022

There is a closing cost associated with any real estate deal, but what are those costs, and whose responsibility is it to pay them? In most cases, the seller can expect to pay closing costs in realtor fees, mortgage fees, taxes, and more. With an all-cash buyer, these fees can be decreased because there are investors involved, but this is not always the case. 

Investors often cover the closing costs on a cash sale. There are no realtors involved. An all-cash offer from Upward Home Solutions LLC eliminates the need for a realtor or having to pay for repairs on the property to sell.

Using a cash buyer eliminates the need for the seller to pay the average realtor commission in Ohio of 5.81%.

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Closing costs: Financed vs. cash offer

Almost 90% of home buyers end up financing their homes with a mortgage loan. With a home loan, you wind up paying more generally speaking, since it accompanies interest installments that truly do accumulate over the long haul. Indeed, purchasing a house is more straightforward with cash. You don’t need to wait for an investigation, evaluation, or endorsement. Despite the fact that a review isn’t needed when you purchase a home with cash, you should get an inspection to ensure your new home won’t have unforeseen expenses. Home sellers who lean toward cash purchasers may do so in order to not have to wait for the home to sell on the market through a realtor or worry if the deal will be denied because of financing.

Closing cost for the buyer

There is a closing cost associated with purchasing a home with a mortgage loan. Mortgage closing costs range between 2% – 5% of loan costs including property taxes, title fees, and additional costs to purchase the property. 

Closing cost for the seller

The seller is also responsible for their own set of closing costs. Sellers eat away at a lot of their profit on selling their home through a realtor in commission fees to an agent. Sellers may also have to pay buyer’s fees such as settlement fees, title transfer fees, and repair fees.

Example of closing cost for a cash buyer

Below is what a typical real estate settlement statement will look like. The are a few fees on the statement that are reduced or non-existent when using a cash buyer.

Closing cost for the Seller using a realtor or selling on the open market in Ohio:

  • settlement fees
  • title search fee
  • document preparation
  • owner’s title insurance
  • government recording fee
  • state tax

Closing cost eliminated using a cash buyer:

  • agent commission
  • lender-ordered appraisal
  • credit report
  • loan origination or underwriting
  • lender’s title insurance

Most of the time these closing costs will be eliminated when using a cash buyer, but it is always good to take time and do research to make sure you are going with the best buyer that fits your situation. 

A quick and easy sale is almost always appealing to sellers! Get a cash offer on any home in the Columbus, Ohio area with Upward Home Solutions LLC. There is no need to make any repairs or to get a realtor involved and drag out the process of selling your home with a cash buyer you can skip straight to getting an offer.

If you’re interested in paying zero closing costs on a cash sale, it is a simple process. All we need are a few details about the home and to come out and lay eyes on the property for the best offer we can give. We can close as quickly as 7 days as well as work with any timeline you need.

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Real estate investors (house-flippers)

In the case of cash buyers that rehab homes, they will often pay the closing cost on behalf of the seller to process as easily as possible. Cash buyers will often make an as-is sale on the property to avoid the closing fees typically associated with the deal.


You cannot presume that as a seller, all cash buyers will cover your closing costs. By making all-cash offers for homes, instant purchasers (aka iBuyers) provide a comparable degree of convenience and certainty to house flippers. But flipping teardowns is not what iBuyers do. On houses that don’t meet the code, many people won’t make offers. They focus on houses in good shape and see their worth in giving sellers a fantastic online experience.

There are still closing costs when using an iBuyer and service fees. They are great for a quick sale without having to go through a lot of work on your end. 

What a general iBuyer offer looks like:

Offer price

                    -Service fee averaging 7%

                    -Closing costs 1%

                    -Cost of repairs based on inspection

Individual buyers: paying cash

Individual cash buyers typically have the cash to buy a home outright reducing the closing cost fees imposed on the seller.

A seller can often avoid closing costs and settlement fees with an individual cash buyer. But not all cash buyers will be willing to cover these costs on behalf of the seller.

In these types of sales, sellers are likely to still pay agent commission costs averaging 5.8%, and the offer may not be as high as what you’d receive from a buyer using a mortgage. With an all-cash buyer such as Upward Home Solutions, there are no commissions to be paid to sell your home. 

Who Pays Closing Costs in Cash Sale Situations?

Selling for cash can be a way for sellers to avoid closing costs. As we’ve touched on in this article, closing expenses can greatly reduce your profits when selling a home.  It can be difficult to pay 6%-10% of the closing cost when selling your home if you can’t afford repairs to your home, facing foreclosure, or can’t afford your mortgage. An all-cash buyer will cover some or all of these fees and help you out of a difficult situation. Upward Home Solutions comes out to your home and gives you a no-obligation cash offer.

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