In Nebraska, closing costs are split between the buyer and the seller, with each side typically paying 2% to 5% of the purchase price. Buyers cover the fees tied to getting their mortgage, while sellers pay the real estate commissions, the state documentary stamp tax, and the owner’s title insurance policy. State law and local custom set the defaults, but the purchase agreement has the final word on who pays what.
What the Seller Pays at Closing
The seller’s biggest closing expense is the real estate agent commission. Commissions are negotiable, but combined rates for the listing agent and the buyer’s agent have historically averaged roughly 5% to 6% of the sale price. Since the 2024 settlement involving the National Association of Realtors, sellers are no longer required to offer compensation to the buyer’s agent through the MLS. Many sellers still choose to cover that cost as a negotiation tool, but how agent fees are split is now agreed on separately by each party with their own agent.
Sellers also pay off any remaining mortgage balance, home equity loans, or liens attached to the property before title can transfer. Those payoff amounts come directly out of the sale proceeds at the closing table rather than out of pocket. Document preparation fees for the warranty deed are standard seller charges as well.
By custom, the seller pays for the owner’s title insurance policy. This one-time policy protects the new owner against future claims on the title, such as undisclosed heirs, recording errors, or old liens, for as long as they own the property. And under Nebraska law, the seller pays the state documentary stamp tax on the deed, which is covered in detail below.
What the Buyer Pays at Closing
Most buyer costs revolve around the mortgage. The loan origination fee is usually the largest line item, running between 0.5% and 1% of the loan amount. On a $300,000 loan, that’s $1,500 to $3,000.
Lenders also require a professional appraisal before approving the loan. Appraisal fees in Nebraska generally range from $300 to $800 depending on the property type and location. A credit report pull fee, usually under $50, is charged separately. Most buyers also hire a home inspector to evaluate the property’s condition before finalizing the deal, which is an out-of-pocket cost that varies by the size and age of the home.
Buyers fund an initial escrow account at closing that holds prepaid amounts for homeowners insurance and property taxes, so the lender can make those payments on their behalf going forward. If the down payment is less than 20% of the purchase price on a conventional loan, the lender will require private mortgage insurance, and the first premium is typically collected at closing.1Consumer Financial Protection Bureau. What Is Private Mortgage Insurance?
The buyer pays recording fees to the county register of deeds for filing the new deed and mortgage documents. Nebraska’s standard recording fee is $10 for the first page and $6 for each additional page. Buyers also pay for the lender’s title insurance policy, which protects the bank’s interest in the property for the life of the loan.
Nebraska Documentary Stamp Tax
Nebraska imposes a documentary stamp tax every time real property changes hands. Under state law, the person granting the deed (the seller) is responsible for paying this tax.2Nebraska Legislature. Nebraska Code 76-901 – Tax on Grantor; Rate The tax is collected by the county register of deeds at the time the deed is recorded, and the register affixes stamps to the deed as proof of payment.3Cornell Law School. 350 Neb Admin Code Ch 52 001 – Nature of the Documentary Stamp Tax
Effective September 3, 2025, the documentary stamp tax rate is $2.32 for every $1,000 of the property’s value, or fraction of $1,000.4Nebraska Department of Revenue. 2025 Nebraska Legislative Changes The rate was previously $2.25; the increase was enacted through LB 78, with the additional seven cents directed to the Domestic Violence and Sex Trafficking Survivor Housing Assistance Fund. For a home sold at $300,000, the seller would owe $696 in documentary stamp taxes.5Lancaster County, NE. Register of Deeds – Filing Instructions and Fees
The statute places this obligation on the seller, but the buyer and seller can agree to a different arrangement in the purchase contract. Certain transfers may qualify for an exemption, including gifts between family members, deeds in lieu of foreclosure, and transfers between spouses in a divorce. A completed Real Estate Transfer Statement (Form 521) must accompany every deed filed with the register of deeds, whether the transaction is taxable or exempt.6Nebraska Department of Revenue. 521 Real Estate Transfer Statement
Costs That Are Split or Prorated
Some closing costs don’t fall cleanly on one side. The settlement or closing fee charged by the title company or escrow agent for coordinating the closing, managing funds, and collecting signatures is customarily divided equally between buyer and seller. Nebraska doesn’t require an attorney to handle a real estate closing; licensed title companies and other regulated closing agents can manage the process.7Nebraska Legislature. Nebraska Code 76-2,122 – Real Estate Closing Agent Either party can hire an attorney for review, and the attorney fees are that party’s own expense.
Property taxes create one of the larger adjustments on a Nebraska closing statement. Taxes are paid in arrears, meaning the seller has been occupying the home without yet paying that year’s tax bill.8Nebraska Department of Revenue. Nebraska Property Assessment FAQs To square that up, the seller credits the buyer at closing for the portion of the current tax year the seller occupied the home. The credit is usually calculated from the most recent tax bill, prorated by the number of days each party owns the property during the tax year. The exact proration method can vary by county and by what the purchase agreement specifies, so confirm how the calculation will work before closing day.
Seller Concessions Can Shift Buyer Costs to the Seller
Buyers often ask the seller to cover a portion of their closing costs through seller concessions, a credit written into the purchase agreement. This can reduce the cash a buyer needs at closing. Every major loan program caps how much the seller can contribute, and going over the limit can jeopardize the loan approval.
- Conventional loans: the cap depends on the down payment. With a down payment above 25% (a loan-to-value ratio of 75% or less), the seller can contribute up to 9% of the sale price. For down payments between 10% and 25%, the limit is 6%. For down payments under 10%, it drops to 3%. Investment properties are capped at 2% regardless of down payment.9Fannie Mae. Interested Party Contributions (IPCs)
- FHA loans: sellers can contribute up to 6% of the sale price toward the buyer’s closing costs.
- VA loans: concessions are limited to 4% of the home’s reasonable value as determined by the VA appraisal. This cap includes items like the VA funding fee, debt payoffs, and prepaid insurance.10Veterans Affairs. VA Funding Fee and Loan Closing Costs
- USDA loans: the seller concession cap is 6% of the sale price. As of 2024, real estate commissions paid by the seller on behalf of the buyer are exempt from this cap.11USDA. Rural Housing Service Congressional Justifications
Any concession amount that exceeds the applicable limit is treated as a reduction in the sale price for appraisal purposes, which can create complications with the loan.9Fannie Mae. Interested Party Contributions (IPCs)
Negotiating the Split
Nebraska custom and state law assign default responsibility for most closing costs, but nearly every fee is negotiable through the purchase agreement. In a buyer’s market, sellers may agree to cover more of the buyer’s costs to attract offers. In a seller’s market, buyers may offer to take on expenses like the documentary stamp tax or the owner’s title policy to make their offer more competitive.
The purchase contract is the final authority on who pays which expense. Common negotiation points include which party covers the owner’s title insurance, how property taxes are prorated, and whether the seller will provide concessions toward the buyer’s loan costs. Because these decisions affect both the cash a buyer needs at closing and the seller’s net proceeds, both sides should review the estimated closing statement well before the closing date.