Final answer:
While the real estate commission is paid by the seller, this cost is typically factored into the home's purchase price, effectively making the buyer pay indirectly. Additional costs for home buyers may include escrow services and mortgage insurance, especially if they opt for a down payment of less than 20%.
Step-by-step explanation:
The statement that buying a home involves the seller paying the realtor commission, so the buyer pays no fee for realtor services except in the form of a higher purchase price is generally true. In most real estate transactions, the seller agrees to pay a commission to their own agent as well as the buyer's agent. These costs are typically factored into the listing price of the home, meaning indirectly, the buyer may be paying a higher price for the home to cover these commissions.
However, it's important to note other costs associated with buying a home. For example, escrow accounts are established during the home purchase process to handle home insurance and property taxes, which are included in the monthly mortgage payment. Additionally, buyers may encounter other costs such as mortgage insurance, particularly if they put down less than 20% down payment. Mortgage insurance protects the lender in case of default and is an additional cost to the buyer.