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Who pays closing costs in an off-market, wholesale transaction?

Closing costs in a real estate transaction vary by state and county and typically range from 1% - 4% of the purchase price of the property.

In traditional on-market (MLS) transactions, the seller and buyer split closing costs equally -- though if you want to make your offer more competitive you should consider offering to pay all closing costs.

In off-market For Sale By Owner (FSBO) and wholesale real estate transactions, it is standard for the buyer to pay all closing costs.

Buyers in off-market transactions are more likely to be investors who are more likely to have enough cash to offer a compelling value to the seller by paying all closing costs whereas on-market buyers are typically cash-constrained and trying to reduce the amount of cash they need to bring to the closing table.

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