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Things you can pay to sweeten a Real Estate Transaction

Earnest money, the deposit you put down on the home if your offer is accepted, shows the buyer you’re serious.

Although it can be tough to shell out thousands of dollars before you even know if the deal will close, if a seller has two competing offers to choose from, she may feel more secure going with the offer that includes a larger deposit.

Concessions, Commissions, Miscellaneous

A seller concession, also known as a buyer closing cost credit, can help a homebuyer reduce the amount she needs to contribute at closing. The seller agrees to pay a maximum dollar amount or percentage of the sale price to cover the buyer's recurring and non-recurring closing costs. The credit comes out of the seller's net proceeds from the sale of the house, thereby reducing the buyer's bottom line.

Real estate commissions make up the lion's share of a seller's fees. In California, the seller typically pays 4 percent to 6 percent of the sale price to a listing agent and the buyer's agent, also known as the cooperating broker. The percentage is split between the two agents, either equally or disproportionately, depending on how the seller and his listing agent negotiated commission splits upon signing a listing agreement.

Sellers also pay miscellaneous fees that a buyer may request as part of the sales contract, such as a termite report, termite repairs, homeowners association documents and a natural hazard disclosure report. Sellers are usually required by the buyer to pay for an owner's title insurance policy, which protects the seller from any undiscovered claims against the title that may be found after closing.

Closing Costs for Sellers

The seller's largest cost at closing is usually the real estate commission, which is split between the listing agent and the buyer's agent. This fee ranges from 5% to 8% of the home's sale price, though 6% is standard amount. Sellers also pay fees related to the property title, which is the legal document that secures homeownership. The most common of these fees is the "transfer tax," which transfers the seller's legal property rights to the buyer. Real estate transfer taxes vary according to region. In New York, the transfer tax costs $2 for every $500 of home value, meaning that the seller would pay $800 for a $200,000 home.

In some cases, sellers make concessions and cover some of the closing costs that are charged to the buyer. For example, veterans of the armed forces who finance their home purchase with a VA loan can only pay certain closing costs. To finalize the transaction, a seller might cover some of the fees which veterans aren't allowed to pay, like attorney fees and document fees.