Does The Seller Pay Closing Costs When Selling a House in Wisconsin

If you are selling your home in Wisconsin, you should know the average closing costs and who pays what upon closing on the house. After the home sale, does the seller pay closing costs or can the buyer cover these fees?

A red "For sale" sign with a blurred beautiful house in the background

You will find that who pays the closing costs depends on the purchase agreement you signed with your buyer. Generally, the buyer’s closing costs are usually larger than the closing fees of the seller. 

Below, you will find the information you need to understand the various aspects of closing costs, such as the transfer fee, HOA fees, and the appraisal fee. We will also go over who pays the closing price on the home. Ready to learn more? Then read on!

Does The Seller Pay Closing Costs in Wisconsin

Closing costs entail the costs that both the buyer and seller must pay upon the final closing day of the real estate transaction. Seller contributions toward closing costs are usually in the form of real estate commission fees for both the buyer’s real estate agent and the seller’s realtor.

Your closing costs as a seller aren’t limited to your agents’ commission fee. You may have to cover the buyer’s title insurance policy. While the sellers generally pay fewer expenditures, they may pay more during the closing. Your realtor can help you determine these costs.

The process of selling a house and completing closing also means that the seller will have to pay property taxes for the rest of the year. However, if the property taxes were prepaid, the buyer should repay part of the taxable year on closing day. You can use the same process to find who covers the homeowners association or HOA fees. 

The buyer can save money if the real estate agreement includes seller concessions. The seller can agree to pay concession fees on closing day, which means the buyer doesn’t need to pay as much when closing. 

Some of the types of fees that seller concessions can cover include:

  • Property and transfer taxes
  • Attorney fees
  • Appraisal fees and title fees
  • Discount points on the home loan to cut down on the interest rate
  • Escrow charges and recording fees

Sellers can agree to offer several of these concessions to the buyer, and they can negotiate to determine the best option for their budget before signing the new home sale contract. For instance, you can save by avoiding covering escrow fees, title search fees, and real estate attorney charges. 

Who Pays Closing Costs When Selling a House

The home buyers and the sellers cover the closing costs when completing the real estate transaction. As the seller, you will likely pay about 0.9 percent of your house’s sale price in seller closing costs when you complete the sale in Wisconsin. 

For instance, if you sold your home for a purchase price of $280,000, you can expect to pay around $2,520 in closing costs. 

Besides closing costs covered between the buyer and seller, there are other costs to consider. For instance, you’ll need to pay the seller’s agent fees. Also, you will have to pay off the rest of your mortgage payments upfront. Otherwise, the liens on the house mean you won’t get to complete the home sale transaction. 

Furthermore, you will have to pay for the homeowner’s insurance through the end of the month. Yet, the buyer is usually responsible for covering the home inspection costs. The buyer also needs to pay the credit report fee when checking their credit score. 

Your closing costs as a seller can include:

  • The owner’s title insurance
  • Property taxes
  • Out-of-pocket recording fees
  • Deed transfer tax
  • Title service fees

Essentially, both the buyer and seller share the responsibility of paying closing costs in Wisconsin when completing a real estate transaction. 

How to Negotiate Closing Costs

Photo of a young couple of homeowners negotiating with a home buyer about who's going to pay the closing costs for the sale of their home

When you attempt to negotiate the home price and the down payment in a seller’s market, you can also start to negotiate the closing costs. Home sellers may find it easier to negotiate closing costs favorably if they are working with first-time home buyers. 

When you are starting the negotiation process, begin by asking about discounts and rebates. For instance, depending on the loan type, the typical borrower may get incentives and discounts from a lender looking for more clients. Often, conventional loans include possible discounts.

The same can be said with closing costs. If you ask about rebates or discounts, you may save a few hundred dollars. 

Once the lender approves the loan amount, a buyer can check if the mortgage company offers a no-closing-cost option in exchange for a larger interest rate. That way, the buyer can end up with no closing costs to cover. 

Essentially, when negotiating closing costs, it is important to understand what the buyer is responsible for. That can help you see where you can make any changes. 

Closing costs depend on the region where the home is located, the price of the house, and whether the real estate transaction is a sale or a refinancing of a loan. 

Closing costs to cover the fees of vendors, the lender, and the realtors can grow as high as 2 to 4 percent of the final home sale price. However, in Wisconsin, the seller is usually responsible for about 1 percent or less of closing fees.

In 2021, the average closing cost across the country was $6,905 for a single-family home sale. 

Should You Calculate Closing Costs As Part of Your Home Value

Generally, experts do calculate closing costs based on the home value or the final home sale price. Do not use the asking price unless the offer is the same as the asking price.

You can also use your mortgage loan amount to calculate closing costs. For example, closing fees often represent about 3 to 6 percent of the mortgage loan. 

Wisconsin home sellers can expect to pay 0.9 percent of their final home sale price in closing costs while buyers may pay as high as 3 to 6 percent of the home price. For instance, houses that cost $300,000 may require buyers to pay as much as $18,000 in closing costs. As the seller, your fees won’t end up as high. 

On average, the home buyer can expect to pay about $3,700 in closing costs. Homebuyers are usually responsible for closing costs like:

  • Appraisal fee
  • Property insurance
  • Transfer taxes
  • Lender fees

You can always ask for help from your real estate agent when you attempt to calculate closing costs based on your home’s sale price. 


So, does the seller pay closing costs? You should now understand that the seller usually covers some of the closing fees, but not the majority. The purchase agreement behind the real estate transaction will outline exactly how much of the fees are covered by the seller versus the buyer.

If you as a seller do not want to pay for real estate agent commission fees, you can always try selling the place by yourself. The biggest advantages of selling house by owner include avoiding the commission fees for the listing agent and buyer’s agent, realtor fees, and selling the home on your own schedule.

Also, if you want to sell a house fast in Wisconsin, you should contact cash home buyers in Milwaukee and nearby regions. Cash buyers don’t need a mortgage loan approval from a lender and can complete the purchase in only a couple of weeks.

We buy houses Fox Point locals love, so call us today!

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