Seller Closing Costs: What Home Sellers Pay at Closing
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Sellers pay closing costs too, and they come out of your sale proceeds at closing. Which costs you pay depends on your contract, your state and local custom. This guide lists the common ones so you can ask for an estimate before you list.
Common seller costs
| Cost | What it is | Negotiable? |
|---|---|---|
| Agent compensation | Your listing agent's fee, and any buyer's agent compensation you agree to offer | Yes; see realtor commission |
| Mortgage payoff | Remaining loan balance plus interest to the payoff date | No |
| Transfer or excise taxes | State or local taxes on the transfer; some places have none | Set by law; who pays may follow custom or the contract |
| Title and settlement fees | Owner's title insurance (in some areas), escrow or attorney fees | Who pays varies by local custom |
| Prorated property taxes and HOA dues | Your share up to the closing date | Calculated, not negotiable |
| Seller concessions | Credits you agree to give the buyer, such as for repairs | Yes |
How to estimate your net proceeds
- Start with the expected sale price.
- Subtract your mortgage payoff (ask your lender for a payoff quote).
- Subtract agent compensation and any concessions.
- Subtract local transfer taxes, title, escrow and recording fees; ask your agent or title company for a written seller's net sheet.
What changed in 2024
After the NAR settlement practice changes took effect in August 2024, offers of buyer-agent compensation are no longer made on the MLS, and buyers working with a member agent sign a written agreement. Sellers can still agree to pay buyer costs as part of a deal. See NAR: The Facts.
Taxes on the sale
Some or all of your gain may be excluded if you meet the IRS ownership and use tests; see IRS Topic 701 and ask a tax professional.
Related: best time to sell, selling without a realtor and what a listing agent does.
Frequently asked questions
What closing costs do sellers pay?
Agent compensation: Your listing agent's fee, and any buyer's agent compensation you agree to offer; Yes; see realtor commission. Mortgage payoff: Remaining loan balance plus interest to the payoff date; No. Transfer or excise taxes: State or local taxes on the transfer; some places have none; Set by law; who pays may follow custom or the contract.
How do I estimate my net proceeds from a home sale?
Start with the expected sale price; Subtract your mortgage payoff (ask your lender for a payoff quote); Subtract agent compensation and any concessions; Subtract local transfer taxes, title, escrow and recording fees; ask your agent or title company for a written seller's net sheet.
What changed for sellers in 2024?
After the NAR settlement practice changes took effect in August 2024, offers of buyer-agent compensation are no longer made on the MLS, and buyers working with a member agent sign a written agreement. Sellers can still agree to pay buyer costs as part of a deal.
Do I owe taxes when I sell my house?
Some or all of your gain may be excluded if you meet the IRS ownership and use tests; see IRS Topic 701 and ask a tax professional.
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