Seller closing costs are the fees paid to complete a home sale, and they usually run about 1% to 3% of the sale price, or roughly 6% to 10% once agent commission is included.
Seller closing costs are the fees paid to complete a home sale, and they usually run about 1% to 3% of the sale price, or roughly 6% to 10% once agent commission is included. The seller typically pays the agent commission, the state (and sometimes municipal) transfer or conveyance tax, owner's title costs, attorney or settlement fees, recording fees, and prorated property taxes. They're deducted from your proceeds at closing, so you don't pay them out of pocket, they come out of what you walk away with.
What counts as a closing cost
"Closing costs" are the fees and charges settled on closing day, listed on the settlement statement, as ownership transfers from you to the buyer. They're separate from the cost of getting your home ready to sell, prep, repairs, staging, and the months of carrying costs while it's listed. This article is about the closing-table costs specifically: the line items that come out of your proceeds when the sale closes.
The seller's closing costs, line by line
- Agent commission, the big one. Historically about 5-6% of the sale price, now more openly negotiable since the 2024 industry settlement. It's by far the largest closing cost for most sellers.
- Transfer or conveyance tax. A state (and sometimes municipal) tax on the sale, paid by the seller. It varies widely, Massachusetts charges about 0.456% of the price, while Connecticut runs roughly 1% to 1.25% depending on the town.
- Owner's title insurance. In many areas the seller pays for the owner's title policy that protects the buyer; who pays varies by state and by negotiation.
- Attorney or settlement/escrow fees. In attorney-closing states you pay your closing attorney; elsewhere it's a settlement or escrow company fee.
- Recording fees and deed prep. The cost to prepare the deed and record the transfer with the town or county.
- Prorated property taxes and HOA dues. Your share of taxes (and any HOA fees) up to the closing date.
- Seller concessions. Credits you agree to give the buyer toward repairs or their own closing costs, which are common when the market softens.
Your remaining mortgage balance is also paid off at closing. It isn't a "cost" exactly, but it comes out of the proceeds too, so it's part of the math when you work out your net.
Who pays closing costs, buyer or seller?
Both do, but they pay for different things. The seller covers the commission, the transfer or conveyance tax, owner's title (usually), their own attorney, and prorated taxes. The buyer covers the loan-related costs, lender fees, the appraisal, their own title and lender's policy, the home inspection, and prepaids like insurance and escrow. In a slower market a buyer may ask the seller for a concession toward their costs; in a hot market the seller has more leverage to hold firm. It's ultimately negotiable, and it shows up in the contract.
How much will you actually pay?
Excluding commission, seller closing costs typically land around 1% to 3% of the sale price. Add commission and you're usually in the 6% to 10% range all in. On a $400,000 home, that's roughly $24,000 to $40,000, the great majority of it commission and transfer tax. The exact figure depends on your state's taxes, your commission arrangement and whatever concessions are negotiated, which is why a rule of thumb only gets you so far.
From closing costs to net proceeds
Closing costs only matter because of what they leave you with. Your net proceeds are the sale price minus every closing cost, minus your remaining mortgage, the money that actually reaches you. That's the number to focus on, and it's also where the way you sell makes a real difference: a cash sale usually carries no commission and fewer closing costs, though typically at a lower sale price, so the honest comparison is always net to net.
You don't have to add this up by hand. PropVio's home sale calculator takes your address, estimates your value, and shows your closing costs folded into your net walk-away for both a listing and a cash sale. If you decide to move forward, PropVio connects you with a licensed local agent or a local cash buyer. Numbers first, no obligation.
Common questions
Who pays closing costs, the buyer or the seller?
+
Both, for different items. Sellers typically pay the agent commission, transfer or conveyance tax, owner's title, their attorney and prorated taxes; buyers pay lender and loan-related costs, the appraisal, inspection and their own title. Who pays what is negotiable and set in the contract.
How much are seller closing costs?
+
Usually about 1% to 3% of the sale price excluding commission, or roughly 6% to 10% once commission is included. On a $400,000 home that's around $24,000 to $40,000, most of it commission and transfer tax.
Do I pay closing costs if I sell my house for cash?
+
Far fewer. A cash sale usually has no agent commission and minimal closing costs, and closes quickly. You'll generally still owe the transfer or conveyance tax and pay off any mortgage, but the total is much lower, though the cash price is typically below full retail.
What's the difference between closing costs and commission?
+
Commission is one closing cost, the largest one, paid to the real estate agents. "Closing costs" is the umbrella term for everything settled at closing, including commission, transfer tax, title, attorney and recording fees.
Can I negotiate seller closing costs?
+
Some of them. Commission is negotiable, and concessions to the buyer depend on the market. Fixed items like the state transfer tax and recording fees aren't negotiable, but the big, negotiable pieces are where sellers save the most.
How do I estimate my net proceeds?
+
Take your likely sale price, subtract commission, transfer tax, title, attorney and recording fees and any concessions, then subtract your remaining mortgage. A seller closing cost calculator, or a home sale calculator, does this in a couple of minutes.
Selling a house usually costs about 8% to 10% of the sale price. On a $400,000 home, that's roughly $32,000 to $40,000, most of it agent commission, plus closing costs, prep, concessions and moving on top.
Home value estimators are usually accurate within a few percent for homes currently listed for sale, but the error is much larger for off-market homes, commonly around 7% or more. They're a useful starting point, not a final answer.
Listing with a realtor usually nets you more money if your home is in good shape and you can wait a couple of months for the sale to close. A cash offer almost always looks lower on paper, but once you subtract agent commission, repairs, closing costs and the months of carrying costs a listed home racks up, the gap narrows.
Market value is what a buyer will actually pay for your home in today's market. An appraisal is a licensed appraiser's professional opinion of that value, usually ordered by the buyer's lender to make sure the loan isn't larger than the home is worth.
Location, size and layout, age and condition, updates, the local market and recent comparable sales are what move your home's value. Location is the biggest factor and the one you can't change; condition and updates are the ones you can.
The cost of selling a house is usually about 8% to 10% of the sale price, and can pass 10% once you add prep, repairs and moving. Here is every category, line by line.
