What would a seller gain by paying closing costs? Won’t he/she be better off taking a price reduction? With a lesser recorded sale price he/she will have less money to claim as capital gain (more as loss) or less money to plough into a new house to save tax.
It wud be understandable if the buyer demands it, so that it could be included in the loan. Or is it the realtors demanding it to keep the comps high?