If you’ve ever typed sell my house fast into a search box, you’ve seen the pitch. We buy houses for cash, any condition, close in days. It sounds simple. The part that gets murky is the money that moves around the edges: closing fees, title costs, transfer taxes, escrow, and the thousand-dollar surprises that often arrive at the end of a traditional sale. Who pays what when you sell to cash home buyers? The short answer is that it depends on the buyer, your state, and your leverage. The long answer is worth understanding before you sign anything.
I’ve sat on both sides of the table, as an investor writing checks and as a seller clearing problems off my desk. The patterns repeat. Cash deals can be cleaner, but they aren’t cookie-cutter. Here’s how the fees usually shake out, how to negotiate them, and what to watch so the fast part doesn’t turn into a costly blur.
What “we buy houses for cash” really means
Cash means the buyer is not relying on a bank underwriter. There’s no loan approval, no appraisal contingency set by a lender, no financing timelines. The buyer either has the funds in a bank account, a private lender ready to wire, or a line of credit secured elsewhere. That removes friction, not every friction, but many.
These buyers come in flavors:
- Local investors who renovate and resell or hold as rentals. They tend to know neighborhood values, prefer predictable closings, and often use the same title company for every deal. Regional or national companies with call centers, standardized offers, and in-house acquisitions teams. Their processes are repeatable, but they can be rigid about price reductions after inspection. Wholesalers who put your property under contract, then assign the contract to an end buyer for a fee. They rarely take title themselves. This group can be uneven, from seasoned operators to rookies. You’ll see this when the buyer name changes before closing.
That diversity matters because who the buyer is will influence who pays which closing fees and how firm they are about it.
Closing fees, defined without fluff
Every closing pulls in a small orchestra of services. The exact mix varies by state and county, and by whether your state is a title company escrow state or an attorney state. But the recurring characters are easy to spot.
Title search and title insurance. A title search verifies legal ownership and uncovers liens or claims. Title insurance guards against defects that slip through, for both the buyer (lender’s policy or owner’s policy) and the seller in some states through gap coverage. In many cash purchases by investors, the buyer pays for the owner’s policy. In some states, custom or contract terms flip that to the seller. Ballpark, owner’s title insurance can range from a few hundred dollars on lower-priced properties to a few thousand on higher-priced ones, often based on the purchase price and state-regulated rates.
Escrow or settlement fee. This is the fee paid to the neutral third party that handles funds and documents. In some markets it’s called escrow, in others settlement or closing. Who pays is custom-dependent. I’ve seen it split down the middle in the Pacific Northwest, paid by the buyer in parts of Texas, and negotiated case by case elsewhere.
Recording fees and transfer tax. The county charges to record the deed. Some cities and states levy transfer taxes. Chicago has both city and county transfer taxes, and the local custom assigns specific portions to buyer or seller. In Florida, doc stamps act like a transfer tax. These are not negotiable amounts, but who pays often is.
Attorney fees. In attorney states, each side may have counsel, or a single attorney houses we buy can handle both sides if allowed. Investors often use one “closing attorney” who represents the transaction more than any one party. Sellers can retain their own counsel if they want a second set of eyes, which I recommend if you’re unsure about a lien or probate.
Prorations. Property taxes, HOA dues, and sometimes utilities are prorated as of the day of closing. If you’ve paid ahead, you’ll receive a credit. If you’re behind, the amount will be deducted from your proceeds.
Junk fees. Courier fees, wire fees, mobile notary fees, and overnight packages can appear. They aren’t always junk, but they can be padded. A $30 wire is normal. A $95 “document prep” fee from a title company is common. A $450 “processing fee” from a buyer that looks like they rebranded a line item to increase margin, less so.
Repair credits, liens, and payoff fees. If you owe on a mortgage, the payoff will include per diem interest and possibly a reconveyance or release fee. If you have municipal fines, code liens, or unpaid utility balances recorded as liens, those are settled at closing. Investors often accept properties with known issues but expect those balances to be cleared from your proceeds unless they explicitly agree to take them on.
So, do they pay the closing fees?
In many we buy houses for cash deals, the buyer offers to pay “all standard closing costs” and to let you pick the closing date. That phrase sounds universal. It isn’t. Here is what “all standard closing costs” usually covers when a professional cash buyer uses it, and what it usually excludes:
Covered more often than not:
- Owner’s title insurance policy, settlement fee, recording fee, and buyer’s attorney fee in attorney states. Municipal lien search in states like Florida, and HOA estoppel or resale certificate fees when applicable. Courier, wire, and mobile notary fees if they’re part of the buyer’s title workflow.
Excluded unless stated:
- Your mortgage payoff, past-due taxes, municipal fines, and judgments. These are your obligations and will be deducted from proceeds. Transfer taxes or documentary stamps in markets where the seller customarily pays them unless the buyer explicitly agrees otherwise. Customs vary, so ask. Unpaid HOA dues or special assessments that are the seller’s responsibility by contract or association rules, unless the buyer agrees to assume them. Repairs, unless the buyer is negotiating a price reduction after inspection instead of asking for repairs.
Some companies publish a one-page “we pay these fees” roster. The reputable ones stick to it. Others keep it vague and use the inspection period to renegotiate, shaving the price or pushing extra fees back onto the seller. I’ve reviewed contracts that say buyer pays all closing costs, then define closing costs on page 9 to include only the buyer’s title insurance and settlement fee. That kind of drafting isn’t illegal, just slippery.
The cleanest deals I’ve seen break down as follows: the buyer pays title and escrow, the seller pays doc stamps or transfer tax if local custom assigns it to sellers, and each side pays their own attorney if they hire one. Taxes and HOA are prorated. The seller’s mortgage and liens are paid off from proceeds. In other words, the buyer’s promise covers the fees tied to closing the transaction, not the obligations tied to your ownership.
State and city quirks that change the math
Real estate keeps one foot in local tradition. You can run into customs that flip the script.
- Florida. The party who pays for the owner’s title policy changes by county. In Miami-Dade and Broward, the seller often pays for title. In most of the rest of the state, the buyer does. Documentary stamp tax on the deed is typically paid by the seller and is formula-based. Texas. Buyers usually pay for title insurance, sellers often pay for the owner’s title policy. Option fees and earnest money are their own buckets. Cash investors there often assume title and escrow costs. California. Customs differ by county, and city transfer taxes can be split or assigned. In Los Angeles, the city tax is paid by the seller unless otherwise agreed. Illinois. Chicago has its own transfer tax layered on Cook County’s, and the parties pay specific portions by custom. Many cash investors accept those norms, some will trade price for a shift in who pays. New York. Attorney involvement is expected. Transfer taxes are significant. Cash buyers there often promise to cover their own legal and title side, but sellers still shoulder transfer taxes unless they secure a negotiated exception.
If you only remember one thing here, make it this: ask the title company or closing attorney what fees are customary for each side in your area, and request a draft settlement statement early. When you move fast, clarity saves you money.
The offer price and the fee promise travel together
The promise to pay all closing fees is baked into the offer. If the buyer is taking on more of the closing costs than customary, expect the purchase price to reflect that. None of this is nefarious. It’s just math. Every dollar the buyer pays in settlement costs becomes part of their basis.
As an example, a local investor offers you 210,000 and agrees to cover title, escrow, and city transfer tax. A different buyer offers 215,000 but wants you to pay transfer tax and split escrow. On paper, the second price looks better. Once you net out the costs, the first may leave you with more cash. The only way to judge is to compare net sheets, not list prices.
When I buy, I send a simple one-page net summary with the offer. It lists purchase price, who pays which closing costs, and my target timeline. When I sell, I ask for the same. If a buyer hesitates to show a net or “can’t provide one until later,” I assume I’ll be fighting credits on the back end.
How wholesalers and assignments affect fees
You can spot a wholesale deal when the buyer name on the contract is “John Smith and/or assigns” or a company you don’t recognize is substituted midway. Assignment fees show up as a line item on the closing statement, paid to the assigning party. That fee does not add to your costs directly, but it can influence how tight the margins are for the end buyer. The tighter the margin, the more pressure to cut your net through price reductions or by shifting fees back to you at the eleventh hour.
Here’s the part sellers miss: wholesalers often write contracts that say seller pays all closing costs or seller pays transfer tax by custom. They do it to keep the end buyer’s net predictable. If you accept that language without reading, you may give up fees a direct buyer would have covered. This is one reason I prefer direct-to-buyer deals if speed and certainty matter to you. Not because wholesalers are bad actors, but because the deal has more moving parts and more hands needing to get paid.
When cash really saves you money
Skipping the MLS doesn’t automatically lower your closing costs, but it changes the fee mix. The biggest savings often comes from bypassing agent commissions, which can run 5 to 6 percent of the sale price, sometimes more or less depending on your market and agreement. You might also avoid repair credits requested by retail buyers after a traditional inspection. In exchange, you’ll likely accept a lower purchase price. The trick is to balance the net against time and risk.
If your roof leaked, your AC is on life support, or you’re tangled up in probate, cash home buyers can literally save months and a lot of stress. I’ve closed inherited houses where a week of waiting for permit records would have killed a regular loan. The investor’s title team pulled archived permits in a day, verified that an open roof permit could be closed after final, and closed the transaction with a holdback that released once the city signed off. That flexibility existed because there was no lender checklist.
On the flip side, if your house is clean, market-ready, and you’re not in a rush, listing on the open market can yield a higher net even after fees. The difference between those paths can be five figures. It comes down to priorities.
Common places sellers get tripped up
Speed obscures details. These are the traps that snag people.
Contract language that says buyer pays all closing costs, then defines closing costs narrowly. Ask for a line-item definition or an exhibit listing which fees the buyer covers.
Inspection clauses that allow unilateral price reductions. A fair inspection clause gives the buyer the right to cancel if new facts emerge or to request a price change that you can accept or reject. Watch for clauses that let the buyer mandate a reduction with no exit for you.
Blank assignability. If the buyer can assign without your consent, that’s not automatically a problem, but ask for a requirement that the end buyer assume all terms, including who pays fees, and provide proof of funds within a set period.
Escrow deposits that don’t become hard. A small earnest money deposit is common in fast cash deals, but it should become non-refundable after inspection and clear title, except for your breach. If the money never goes hard, your time isn’t protected.
Title surprises late in the game. Pull a preliminary title report early. If you suspect a lien, ask the title company to run a lien search immediately. I’ve helped sellers discover medical judgments and municipal charges that would have crushed their net if we found them the day before closing.
How to negotiate who pays, without drama
You don’t need a law degree to hold your ground. Start with the net, not the headline price. Frame your ask in terms of outcome. Instead of “You pay everything,” try “I need to net 225,000 after standard seller obligations like taxes and HOA prorations. If you can cover title and transfer tax, we’re there.” Buyers think in yield. Speak to that and you’ll get a fair shake.
Some investors offer seller-friendly timing that beats a few extra dollars. If you need two weeks after closing to move, ask for post-occupancy, sometimes called a rent-back. If you’re boxed in by a probate timeline, ask the buyer to open title now and close immediately after letters of administration are issued. If you’re short on cash to move, request a small non-refundable deposit released to you after clear title as moving money. These concessions have real value and can be traded for who pays which fees.
If the buyer’s brand is we buy houses for cash and they advertise we pay closing costs, hold them to their marketing. Most legitimate companies will meet you there.
What a seller’s net sheet looks like in practice
Let’s make it concrete. Suppose you accept a 200,000 cash offer. The buyer is a local investor. They agree to pay owner’s title insurance, settlement fee, recording fee, and their attorney. You owe 112,000 on your mortgage. You’re current on taxes. Your county charges a transfer tax of 0.5 percent, customarily paid by the seller. HOA dues are paid through the end of the quarter.
Your settlement might look like this: 200,000 gross price. Less 112,000 mortgage payoff and about 700 interest and reconveyance. Less 1,000 transfer tax. Title and escrow paid by buyer, so zero to you for those. Prorated taxes add a small credit or debit depending on closing date. Courier and wire fees covered by buyer. Your net is roughly 86,000 to 87,000, depending on per diem interest and prorations.
Now compare with another buyer at 205,000 who wants you to pay half of escrow and the transfer tax. Settlement fee of 900 split to you is 450, plus the 1,000 transfer tax. Your mortgage is the same. That makes your net around 91,000 to 92,000. Even if the first buyer covered more fees, the second left you with more cash. This is why you ask for both a net sheet and a clear list of who pays what.
When “no closing costs” isn’t your best deal
There’s a temptation to chase the simplest promise. I’ve seen sellers pick a lower price because the buyer offered to pay all closing costs, then discover that the buyer’s inspection found 14 items and they want a 10,000 reduction. On a house that needs work, the reduction isn’t always unreasonable. The problem is the expectation. Set the expectation early: as-is means no repairs, and post-inspection reductions are for material, undisclosed issues only. If the buyer agrees to that in writing, their promise to pay closing costs has real teeth.
The opposite scenario happens too. A buyer won’t pay all closing fees, but they will commit to a short, clean close with a non-refundable deposit after a week. If your risk tolerance is low because you’ve already moved or you’re in pre-foreclosure, certainty beats a slightly higher net on paper.
Why real estate agents still make sense sometimes
A good agent does more than market your home. They manage timing, set expectations with buyers, and absorb the calls that would have hit your phone. On a house in solid condition, a full retail sale may yield enough extra to cover commissions and still beat the investor’s net. Agents can also broker a hybrid: list on the market while keeping a cash buyer in your back pocket as a fallback if the listing stalls. The fallback often agrees to be your first backup offer, locked and ready to step in.
This is related to closing costs because retail buyers have different fee expectations. You’ll often pay for a portion of title and escrow depending on custom, plus the commissions. The buyer will request repairs or credits after inspection. You should still demand a net sheet from your agent before going live, updated after offers arrive.
Red flags and green lights when reviewing a cash offer
Use this quick scan before you sign anything.
- Proof of funds that match the buyer’s name on the contract. If it’s a line of credit or a partner letter, ask for clarity on who wires at closing. A short inspection period, ideally 3 to 7 days, with a clear outcome clause. Watch for language that allows indefinite extensions. Earnest money that becomes non-refundable after inspection and clear title. The amount varies by price point. Two to five thousand dollars is common on lower-priced homes, more on higher-priced ones. A title company or closing attorney you can call directly. Ask them to confirm who pays which fees as written, and to send you a preliminary settlement statement once payoffs are in. No surprise addenda with processing fees or marketing fees. If the buyer needs a transaction coordinator fee paid by you, ask why. Most back down.
These items don’t make a deal perfect, but they separate real buyers from tire kickers.
The role of timing, and why it influences fees
Investors make their living on velocity. They value time because it reduces risk. The faster they close, the less chance of market shifts, material price changes, or new municipal issues. If you can accommodate a quick close, you can often ask the buyer to carry more of the closing fees. If you need a delayed close or post-occupancy, some buyers will agree, but they may pull back on fee coverage or price to compensate for the extra risk.
I’ve paid transfer taxes that were normally the seller’s responsibility in exchange for a seven-day close that saved me two months of holding risk. I’ve also asked sellers to cover their customary taxes when they needed a sixty-day rent-back. Both deals were fair because both respected the risk each side carried.
A simple plan to compare cash offers
Here’s a practical way to make it apples to apples:
- Ask each buyer for a written net sheet that includes price, who pays each closing fee, and the target timing. Request a draft settlement statement from the title company once they pull your mortgage payoff. Verify local custom for transfer taxes and title policy payment. Local title companies will tell you in one phone call. Decide your priorities: highest net, fastest close, minimal move stress, or certainty. Rank them. Let that rank guide which fee concessions matter. Lock the language: as-is sale, limited post-inspection reductions, and a reasonable inspection window. Add a clause stating the buyer covers [list specific fees] to prevent later arguments. Choose the offer that best matches your priorities and your gut after you speak directly with the title company or attorney.
Keep this simple. The best deals feel straightforward when you read them and when you talk to the closing staff.
Final thoughts from the trenches
The phrase we buy houses for cash has grown into a catchall. Some buyers are outstanding partners. Some are middlemen with a spreadsheet. The difference shows up in the closing costs and in the contract tone. Do they itemize what they’ll pay, or do they hide behind a vague promise? Do they pressure you to sign tonight, or do they encourage you to call the title company and verify?
Do cash home buyers pay closing fees? Often, yes, and sometimes far more than a retail buyer would. Will they cover everything? Not your obligations like mortgages and taxes, and not in every state the transfer tax that custom assigns to you, unless they explicitly agree. The winner is the deal that balances a fair price with clarity. If the words match the math on the settlement statement, you’ve got the right buyer.
When you line up two or three offers, strip them down to what really matters: the net on paper, the odds of an on-time close, and the number of headaches you’ll avoid. If you’re careful with definitions and timelines, you can sell my house fast without discovering at the eleventh hour that your fast sale came bundled with fees you didn’t expect. And that’s the point of selling for cash in the first place: fewer surprises, more control, and a closing that matches the promise on the postcard.