"What No One Tells You About Seller Closing Costs (Until It’s Too Late)"

If you’re thinking about selling your home, you’ve probably heard the term “closing costs” thrown around. But what does that actually mean for you as the seller?

Let’s break it down in plain language—no confusing jargon, just real talk.

First things first… what are closing costs?

Closing costs are the fees and expenses you’ll pay at the end of a real estate transaction—when ownership officially transfers to the buyer. For sellers, this is the final step before handing over the keys and collecting that well-deserved profit. But before you start planning how to spend your proceeds, it’s important to know what gets deducted first.

So, what’s included in a seller’s closing costs?

Glad you asked. Here are the most common items you’ll likely see:

Real Estate Commissions

This is typically the biggest chunk of your closing costs. In most cases, sellers pay the commission for both the listing agent and the buyer’s agent. It’s usually around 5 to 6 percent of the sale price, but that can vary.

For example, if your home sells for $400,000 and the commission is 6 percent, that’s $24,000 split between the two agents.

Title and Escrow Fees

These are the fees associated with the title or escrow company handling the transaction. They ensure all the paperwork is accurate, funds are properly distributed, and the title is transferred without any hiccups.

Repairs or Credits

If any repairs were negotiated during the inspection process, you might be responsible for paying those before closing—or giving the buyer a credit so they can handle it themselves after they move in.

Seller Concessions (Optional)

Sometimes, to sweeten the deal or help a buyer with their own closing costs, sellers offer concessions. This is totally negotiable but something to keep in mind as a potential cost.

Transfer Taxes and Recording Fees

Depending on where you live, you might owe a transfer tax to the county or city when the property changes hands. These vary by location and are sometimes split between buyer and seller.

Mortgage Payoff

If you still owe money on your mortgage, that balance will need to be paid off at closing. The title company will take care of this directly out of your proceeds.

HOA Fees or Document Charges

If your home is in a community with a Homeowners Association, there may be fees to transfer ownership or order the required documents. These can range from small to surprisingly high, so it’s a good idea to ask about them upfront.

So… how much are we talking?

Seller closing costs typically range between 6 to 10 percent of your home’s sale price. A lot depends on your specific situation, local taxes, and how negotiations go.

Bottom Line

Selling your home is a big deal—and understanding your costs up front helps you plan ahead and avoid surprises. If you’re considering selling and want a personalized breakdown of what your net proceeds could look like, I’d be happy to help.

Got questions or ready to run the numbers? Reach out anytime. I’m here to make the process smooth and stress-free for you.