When selling your home, it’s easy to focus on the listing price, offers, and net proceeds. But one key factor that can significantly impact your bottom line is closing costs. For sellers, these expenses can add up quickly if you don’t plan ahead. Understanding what closing costs you’ll pay—and how to manage them—ensures a smoother, stress-free transaction.

In this guide, we’ll break down common seller closing costs, provide an estimate of what you can expect, and share tips on how to prepare financially.

What Are Closing Costs for Sellers?

Closing costs are the fees and expenses required to finalize a home sale. While buyers typically cover loan-related costs, sellers are responsible for expenses tied to transferring ownership and facilitating the transaction. These costs usually range between 6% to 10% of the home’s sale price—the bulk of which often comes from real estate agent commissions.

Common Closing Costs Sellers Pay

Here’s a breakdown of typical seller closing costs:

1. Real Estate Agent Commission

• Amount: 5%–6% of the sale price (split between buyer’s and seller’s agents).

• This is the largest closing cost for most sellers. For example, on a $400,000 home, commissions could reach $24,000.

2. Title Insurance & Escrow Fees

• Amount: $1,000–$3,000 (varies by state and sale price).

• Sellers often pay for the buyer’s title insurance policy to ensure clear ownership transfer. Escrow fees cover the third-party handling of funds and documents.

3. Attorney Fees (if applicable)

• Amount: $500–$2,000.

• In some states, attorneys are required to oversee the closing process.

4. Outstanding Liens, HOA Fees, and Property Taxes

• Amount: Varies.

• Any unpaid property taxes, homeowners association dues, or liens must be settled before closing.

5. Seller Concessions (if negotiated)

• Amount: 1%–3% of the sale price.

• If you agree to cover some of the buyer’s costs, this will be deducted from your proceeds.

6. Mortgage Payoff

• Amount: Remaining loan balance + interest.

• The payoff of your current mortgage is usually the largest deduction from your sale proceeds.

7. Miscellaneous Fees

• Recording fees, transfer taxes, courier costs, and wire fees may add up to a few hundred dollars.

How to Plan for Seller Closing Costs

Request a Net Sheet Early

Your real estate agent or escrow officer can provide a seller’s net sheet, estimating your costs and expected proceeds.

Budget Around 8% of Sale Price

A safe rule of thumb is to set aside 8% of your home’s value for closing expenses to avoid surprises.

Negotiate When Possible

• Commission rates may be negotiable with your agent.

• You can also push back on buyer requests for concessions.

Time Your Sale Wisely

Closing near the end of a property tax cycle or HOA billing period can minimize prorated payments.

Shop for Service Providers

In some states, you may choose your own escrow or title company—compare fees to save money.

Selling a home isn’t just about the profit—it’s also about understanding the costs you’ll need to cover before you walk away with your net proceeds. By knowing what to expect in advance and planning strategically, you can reduce stress, avoid last-minute financial surprises, and maximize your return on investment.

Matt Witte strives to be the best realtor in Andover, MA.

Any questions about real estate, reach out to Matt Witte, Andover Realtor, MA