It has become more common for buyers to ask for sellers to pay closing costs. I know where I am, it is a negotiating point on almost every contract. Paying closing costs will attract more buyers to your home. We live in a world where no one wants to put any money down or just doesn't have the money to do so.

In a sellers market you won't be paying closing costs for the buyer as often as you would in a buyers market. It is indeed a bargaining tool. We once negotiated to pay closing costs for a buyer by raising the cost of our home to cover the amount of closing costs they wanted us to pay. Turns out they were cash poor and didn't have enough cash for both a down payment and closing costs, but had enough income to qualify for a higher payment. That is the only time we ever paid closing costs, but then again we never sold in a buyers market, this spring may bring a whole new way of thinking for us when we list.

In my area of the Midwest, it's standard for the sellers to pay closing costs.

Unheard of in Northern NJ, and SE Pa, at least up until this past spring...I can't believe people buy homes without a downpayment(let alone 20% down) AND have no closing monies set aside...YIKES

In a strong seller's market it's less common. In a "normal" market, it's not uncommon. It's important to focus on net proceeds--in the end, a sale price of $255,000, paying $5,000 of buyer's costs, isn't much different than selling for $250,000, with no seller help.
(Your transfer tax will be a smidge higher, and you will need to appraise for $5,000 more.) You broaden your base of buyers when you are willing to pay costs.

I know when I lived in SW PA back in 2002-2003, closing costs were just starting to be the trend.....

Actually, our buyer paid for $2,000 of OUR closing costs, so it can go either way depending upon the market.

Gloria

In Alabama it is standard for the seller's to pay part or all of the closing costs. Most times that money is factored in as part of the sale price and sometimes you can add it in. Where I am moving to - Maine - it's apparently the buyer that pays all the closing costs.

I live in Southern California, just sold my home, but was not asked to pay closing (only the customary 50%). I would not pay buyer's closing unless I raised the price!

You may need to define what 'closing costs' are more specically.
Virginia typically has a mix of selelr costs (grantor's tax, termite inspection, RE commision) and buyers costs (points, inspections, PMI, survery fees, etc.).
It is all negotiable, and sometimes a seller ends up paying
something to sweeten the deal.
Probably more common on the starter houses. First time home buyers are often stretched and need some help. If they try and wait to have the cash the market has been moving faster than they can often save. The slowing market may help with this a little, but many of the 'starter' homes are a $100,000 house on a $400,000 lot. Builders snap them up and demo the houses.

Thanks!

By closing costs, I meant all those escrow fees, etc. I know as a buyer (I'm building), my closing costs are about 5% or so of my price which is a lot! My bank is waiving the origination fee thankfully (about $1000). I guess I just don't won't to pay for the buyer when someone buys my house. I feel like I'm having to pay it twice. Grrr. Gotta do what I gotta do though I guess.

"escrow fees,"

You stil need to define them more clearly.
There is an escrow amount for te owners insurance (usually a few months of the annual bill in addition tothe 1 year pre-paid), often something for property tax, and depending in the local.
There are recording fees for deeds of trust in many places based on the value of the deed.
Grantor's taxes for graning a deed to the purchaser.

Look to one of your previous HUD-1 settlement forms to see what fees are common in your area and bargain from there.

Where I am, the seller usually pays 'partial' closing costs. They'll specify, or the buyer will ask for, 3k toward closing costs or something like that. You just do mental math and figure "OK, he's offering me 250 - 3 ... that's 247. Way too low, I'm going to wait another three months for my next offer". ;)

It's not so much the buyer asking you to pay their costs, as them trying to lump the costs into their mortgage. We once offered 5K over full price (we were putting 20% cash down), with 5K back in closing costs. It was fsbo, and the sellers wanted the 5k extra, but no closing costs. The couldn't understand why they should pay our expenses with that lovely extra money we were offering them. It didn't work out.

I've been taking some RE courses recently, and in one the coach said that seller paid closing costs are tax deductible to the seller, while closing costs paid by the buyer are not. He recommended that buyers request the seller to assume all closing costs, with a corresponding increase in the home sales price, since at least the interest is deductible for the buyer.

Hope this helps, at least in prompting additional comments on taxation.

I am buying a newly built home from a builder. I know its a buyers market now, so what are my options for having the seller/ builder pay part or all of my closing and what additional charges will I have to watch out for them?
(ie a change in price,interest rates etc..)

Mary, are you sure about that and how are they deductible?

For example if I am selling a house for 700k and buying a house for 800k I do not have to worry about paying tax on the gain. Is this the situation or some other situation where it is actually deductible as some type of personal expense? Is the realtor commission deductible or only as part of the sale if I am not buying a more expensive house (or my profit is more than 500k for a married couple)

Also what expenses, mortgage recording tax, which is payable to my local county or town, is this deductible? For whom and why, this is normally paid by buyer
Title insurance (whether for bank or homeowners?)
Prepaying any property tax would be
New survery, normally paid by buyer, deductible if done by seller or only if not buying a more expensive house?

Bank fees, bank attorney fees, points? Deductible? By whom and why

Would love to know the answers without calling an accountant

For more expensive houses, not starter homes, in the NE, anyone heard of seller paying closing costs?

Also in NY there is a mansion tax for sales over 1 million (usually nothing near a mansion, more like a 4 bedroom colonial from 1960 with the original kitchen) so you never want to up the purchase price when you get near that number