Certain costs need to be paid as part of a real estate transaction. There are recoridng fees, title search fees, etc.. This occurs whenever property is transferred. If you are paying cash, you of course will save the money you would have paid to the bank to do appraisal, origination fees, points, etc. If paying cash, you have a lot of leverage with the seller, because they don't have to be dependent on a bank to do their processing for funds to know if you qualify as a buyer. This is a great benefit for the seller, so you can negotiate what closing costs they are willing to pay. Make sure when the contract is written, that included in there is a statement in an addendum that seller "will pay $xxxx toward buyer closing costs" if that is what you want to do. A good realtor can guide you in the process.