What Sellers Should Know About Closing Costs

When selling a home, many people focus on the sale price and potential profit. But just like buyers, sellers also face expenses at the closing table. Knowing what to expect ahead of time can help you plan better, avoid surprises, and walk away with a clear understanding of your net proceeds.

What Are Closing Costs for Sellers?

Closing costs are the fees and expenses paid at the end of the real estate transaction. For sellers, these typically range from 6% to 10% of the home’s sale price, depending on your location and agreement with the buyer.

Common Seller Closing Costs

1. Real Estate Agent CommissionsThis is usually the largest cost, often 5%–6% of the sale price, split between the buyer’s and seller’s agents.

2. Title and Escrow FeesSellers may be responsible for part of the title insurance and escrow service fees, which cover the legal transfer of ownership and secure handling of funds.

3. Outstanding Liens or HOA FeesAny unpaid property taxes, utility bills, or homeowners association dues typically need to be settled at closing.

4. Repairs or ConcessionsIf the buyer’s inspection uncovers issues, you may agree to pay for repairs or offer a credit toward them.

5. Transfer TaxesMany states and municipalities charge a transfer tax when property changes hands. The seller often pays this fee.

6. Attorney Fees (in some states)In states where attorneys are required, you may be responsible for legal representation at closing.

Estimating Your Net Proceeds

Your agent can prepare a net sheet that outlines the estimated closing costs based on your home’s sale price. This gives you a clearer picture of what you’ll actually take home after all expenses are deducted.

The Bottom Line

While closing costs can feel overwhelming, they’re a standard part of every real estate transaction. Understanding them in advance helps you avoid surprises and ensures you know exactly what to expect on closing day. With the right preparation, you can move forward confidently to your next chapter.