Sounds like if they put 0.00 in the contract, they don't plan on paying any of the buyers closing costs. Typically when buying a home, you also have to consider the cost for an inspection (can be 250-400, depending on the size of the home), many banks will have you pay for the appraisal (another 400) and for your credit report up front (15). After that, you will have traditional buyer closing costs, unless your super savvy real estate agent negotiates a deal in which the seller pays for your closing costs. The rule of thumb is that closing costs can run about 3% of the purchase price when working with a lender. Those costs include the property insurance on your new home, surveys if required/wanted, attorney fees (approx. 300), title examination, escrow deposits and lender required reserves, prorated property taxes, the cost of obtaining your loan, any discount points. . . . it sounds intimidating, but working with a good Realtor and a strong lender can help guide you to a happy house hunting experience.