How much are closing costs for the seller?

Selling a home means writing checks you didn't know existed - or more accurately, watching thousands disappear from your proceeds before you ever see them. Between agent commissions, government fees, and a dozen smaller charges, most sellers hand over 8% to 10% of their sale price just to complete the transaction.

This guide breaks down every fee you'll encounter, shows you how to calculate your actual take-home amount, and reveals where you can negotiate to keep more money in your pocket.

What are seller closing costs?

Seller closing costs are the fees you pay when transferring ownership of your home to a buyer. The total typically runs between 8% and 10% of your sale price, which means on a $362,000 home, you're looking at roughly $29,000 to $36,000.

Here's the part that surprises most first-time sellers: you won't write a check for any of this. Everything gets deducted from your sale proceeds at closing, so the money never hits your bank account in the first place. The escrow company handles all the math, subtracts what you owe, and wires you what's left.

Typical closing costs for sellers and their price tags

Every sale involves a handful of standard fees. Some are negotiable, others are set by your state or county. Let's walk through each one.

Real estate agent commission

Agent commissions take the biggest bite out of your proceeds. The total commission has historically ranged from 5% to 6% of your sale price, though recent industry changes mean you have more room to negotiate.

On a $400,000 home with a 5% total commission, you'd pay $20,000 at closing. That commission typically gets split between your listing agent and the buyer's agent. After August 2024, new rules shifted how commissions work - buyers now sign agreements with their agents and can negotiate what they pay separately from what you offer, though commissions reached 2.40% by early 2025.

Transfer or deed tax

Transfer taxes are government fees charged when ownership changes hands. Your state, county, or city collects this money to record the sale in public records.

The cost swings wildly depending on where you live. Texas charges nothing. Washington State might charge over $11,000 on a median-priced home. California, New York, and Delaware all have substantial transfer taxes that can exceed 2% of your sale price when you combine state and local fees.

Owner's title insurance

Title insurance protects your buyer if someone later claims they own your property or if old contractor bills surface after closing. In most markets, sellers pay for the buyer's owner's title insurance policy.

The premium typically runs around 0.5% of your sale price. On a $400,000 home, expect to pay roughly $2,000 for this one-time policy. You might see two title insurance charges on your closing documents - one for the owner's policy and one for the lender's policy. The buyer usually pays the lender's policy.

Escrow or settlement fee

The escrow company acts as the neutral middleman who holds the buyer's money and manages all the closing paperwork. Settlement fees cover document preparation, notarization, recording the deed, and wiring funds.

Costs range from $200 to 0.5% of the purchase price depending on your state. Some states split this fee between buyer and seller. Others put the full amount on the seller.

Prorated property taxes

You pay property taxes through your closing date, then the buyer takes over. If you've already paid taxes for the full year, you'll get a credit back for the unused portion. If you haven't paid yet, you owe your share at closing.

Here's an example: you close on July 15 and your annual property tax is $6,000. You'd owe roughly $3,250 for the seven and a half months you owned the home that year.

HOA fees and payoffs

Homeowners associations charge transfer fees when ownership changes, typically between $100 and $500. You'll also pay any outstanding monthly or quarterly dues through your closing date.

Some HOAs require sellers to provide documents for buyers - things like financial statements or rules and regulations. Preparing those packages can cost another $200 to $400 in administrative fees.

Seller concessions to buyer

In slower markets, you might agree to pay some of the buyer's closing costs to sweeten the deal. These seller concessions can range from 1% to 3% of the purchase price.

The credit reduces your net proceeds but can help close the sale faster or at a higher price. Lenders cap how much you can offer based on the buyer's loan type and down payment size.

Loan payoff and prepayment penalty

Your outstanding mortgage balance gets paid off at closing from your sale proceeds. Some lenders charge prepayment penalties if you pay off your loan early - usually 1% to 2% of what you still owe.

Check your original mortgage paperwork or call your lender to see if this applies to you. If you have a home equity loan or HELOC, those balances also get paid in full before ownership transfers.

Miscellaneous recording and courier fees

Small administrative costs add up quickly:

• Recording fees: $50 to $250 to file your deed with the county

• Notary services: $50 to $150 for document signing

• Courier fees: $25 to $75 for delivering paperwork

• Final utility readings: $50 to $200 for water, gas, or electric

Each one seems minor, but together they can add several hundred dollars to your closing costs.

How much are seller closing costs on average?

Percentage of sale price range

Most sellers pay between 8% and 10% of their home's sale price in total closing costs. That range shifts based on where you live and what you negotiate with agents.

High-tax states like New York or California push you toward the upper end. States with no transfer taxes and lower commissions bring you closer to 6% or 7%.

Dollar examples for different home values

Here's what closing costs look like across different price points:

Home Price | 8% Closing Costs | 10% Closing Costs $250,000 | $20,000 | $25,000 $400,000 | $32,000 | $40,000 $600,000 | $48,000 | $60,000

Keep in mind these figures assume typical agent commissions of 5% to 6%. If you negotiate lower rates or use a different selling method, your total drops.

Closing cost calculator for sellers quick formula

You can estimate your costs in three steps.

Step 1 add mandatory fees

Start with the costs you can't negotiate. Look up your local transfer tax rate on your county assessor's website, then add any recording fees your state requires. Don't forget your outstanding mortgage balance.

If you're selling a $400,000 home in a county with a 1.5% transfer tax and you owe $200,000 on your mortgage, your mandatory costs are $6,000 in transfer taxes plus your $200,000 loan payoff.

Step 2 estimate negotiable costs

Next, add your agent commission and other variable expenses. If you've agreed to a 5% total commission, that's $20,000 on a $400,000 sale. Tack on title insurance at around 0.5%, settlement fees between $500 and $2,000, and any seller concessions you've offered.

You can shop around for title and escrow services to find better rates. Calling three to five providers might save you $500 to $1,000.

Step 3 subtract mortgage payoff to find net

Take your sale price and subtract everything from steps one and two. What's left is your net proceeds - the actual amount you'll receive after closing.

On a $400,000 sale with $28,000 in total closing costs and a $200,000 mortgage, you'd net $172,000. Remember this is an estimate. Your final closing disclosure arrives three days before closing with exact numbers.

When are closing costs for sellers paid?

At the settlement table

All seller closing costs get paid on closing day when ownership transfers. You won't write individual checks - the escrow company deducts everything from your sale proceeds automatically.

Through escrow withheld from proceeds

The title company or settlement attorney collects the buyer's funds, subtracts your closing costs and mortgage payoff, and then sends you what remains. You typically receive your net proceeds within 24 to 48 hours after signing.

How to reduce closing fees when you sell

Negotiate commission or go flat fee

Commissions are negotiable, always. You might offer a buyer's agent 2% to 2.5% instead of 3%, or hire a flat-fee listing service that charges a few hundred dollars instead of a percentage.

If you're buying and selling with the same agent, ask about a discount for the double transaction. Agents in hot markets where homes sell quickly may also accept lower rates.

Shop title and escrow services

Title and escrow companies set their own prices. Call around and compare quotes - you might find $500 to $1,000 differences for identical services.

Ask about reissue rates if you've owned your home for less than 10 years. This discount can cut your title insurance premium by 20% to 40%.

Time the closing date for tax savings

Closing early in the month means you owe less in prorated property taxes and HOA fees. Close on the 5th instead of the 25th and you save roughly two-thirds of that month's expenses.

Work with your buyer to pick a date that minimizes your obligations while meeting everyone's timeline.

Offer credits instead of price cuts

When a buyer asks for a $10,000 price reduction, consider offering a $10,000 closing cost credit instead. Your sale price stays higher, which matters for neighborhood comparables and appraisals.

Credits also help buyers who are short on cash but can qualify for a slightly higher loan amount.

Sell to a cash buyer like Opendoor

Cash buyers eliminate many traditional closing costs. When you sell to Opendoor, you skip buyer-side agent commissions, avoid buyer-requested repairs, and receive a transparent cost breakdown upfront.

You also get certainty - no financing contingencies and a closing date you control. Get a free, no-obligation cash offer to see your estimated net proceeds.

State and local variations in closing costs

High-cost states to watch

New York, Washington, California, and Delaware all charge substantial transfer taxes. Combined state and local fees can exceed 2% of your sale price in these markets.

Cities add their own layers too. San Francisco, Seattle, and Philadelphia tack on municipal transfer taxes beyond what the state charges. If you're selling in one of these areas, budget an extra 1% to 3% for government fees alone.

Low-cost states and transfer-tax exemptions

Texas, Missouri, and several other states charge no state-level transfer taxes. Your closing costs in these markets lean more heavily toward commissions and title fees rather than government charges.

Some states offer exemptions for seniors or properties under certain price thresholds. Check with your local assessor's office to see if you qualify.

See your net proceeds the stress-free way

Knowing your closing costs upfront removes the guesswork from selling. When you understand exactly what you'll pay, you can plan your next move with confidence instead of waiting until three days before closing to see the final numbers.

Traditional sales often come with surprise fees or last-minute adjustments. With Opendoor, you receive a transparent breakdown of all costs from day one. You choose your closing date, skip the showings, and move forward on your schedule. Start with a free, no-obligation cash offer and see what you'll actually receive in minutes.

Frequently asked questions about seller closing costs

Can sellers roll closing costs into the buyer's loan?

Sellers can't add their closing costs to the buyer's mortgage directly. However, you can offer seller concessions where you credit the buyer for a portion of their closing costs, which reduces your net proceeds while helping the buyer cover expenses. Lenders typically cap concessions at 3% to 9% of the purchase price, depending on the loan type and down payment.

How do closing costs differ for new construction homes?

New construction sales often include builder fees, warranty transfers, and homeowner association setup charges that don't apply to resale transactions. You won't pay for repairs or inspections since the property is new, which can offset some of the extra costs.

What happens if the sale proceeds are less than the closing costs?

If your closing costs and mortgage payoff exceed your sale proceeds, you'll bring cash to closing to cover the difference. This situation requires lender approval if you owe more than the home's value. Contact your lender early if you think you'll face this scenario - they may negotiate reduced payoff amounts or work out alternative solutions.