Other common deferred expenses include startup costs, the purchase of a new plant or facility, relocation costs and advertising expenses. Both prepaid expenses and deferred expenses are important aspects of the accounting process for a business. As such, understanding the difference between the two terms is necessary to report and account for costs in the most accurate way.
Tip: Get the lender to pay the closing costs. If you're short on cash for the closing costs and can't roll the closing costs into the mortgage, some lenders will pay part or all of the closing costs, but in exchange you'll have to pay a higher interest rate on the loan, perhaps 0.25% or 0.50% higher.
Usually, the buyer faces more line-item expenses, but the seller pays the commission. In a closing, both buyers and sellers have costs. Home buyers pay between about 2 to 5 percent of the purchase price in closing fees, but are faced with more line-item expenses than the seller. Sellers tend to pay more at closing, as they are responsible for paying the real estate commission. Sellers can expect to pay between about 5 to 10 percent of the sale price in closing costs, though this varies by location. Sellers pay the commission