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On average, closing costs make up two to five percent of the purchase price of a home. Two percent doesn't seem like a high number, until you remember that houses are pretty expensive. With the average home price at $152,000, that means you can expect to pay an extra $3,000 to $7,600. And that's just on average.
In this case, the seller countered with a price of $208,000, agreeing to pay $5000 of the buyer's closing costs. This time the buyer scratched his head. That's no deal, he complained to his Realtor. The seller just took my offer and added in the closing costs. .