Which closing cost is most likely to be paid by the seller?

The most likely closing cost to be paid by the seller is the payoff of existing liens. When a property is sold, any liens against that property, such as a mortgage or other debts secured by the property, must typically be settled before the transfer of ownership can occur. This ensures that the buyer receives clear title to the property without any outstanding debts attached.

Paying off these existing liens is essential for a smooth transaction and to make the property more attractive to potential buyers, as buyers are generally hesitant to assume the seller’s financial liabilities. Therefore, it is the seller’s responsibility to resolve these liabilities before closing.

Other considerations in the options include discount points, which are generally paid by the buyer to lower the mortgage interest rate; escrow reserves, which are typically related to property taxes and insurance and can be negotiated between buyer and seller; and mortgage insurance premiums, which may also be a cost borne by the buyer depending on the financing used. Each of these costs is less directly tied to the seller's obligation than the payoff of existing liens.