Typical Seller Closing Costs You Should Anticipate

Answer

Selling a home in the U.S. involves more than signing the final paperwork. Seller closing costs encompass the various fees and expenses you’ll cover at the end of your transaction. Knowing these costs upfront helps you set a realistic net-proceeds expectation and avoid last-minute surprises.

On average, U.S. home sellers pay between 6% and 10% of the sale price in closing costs. These expenses break down into three main categories:

• Real Estate Commissions: Typically the largest single expense, commissions range from 5% to 6% of the sale price and are split between your listing agent and the buyer’s agent.
• Title and Escrow Fees: Title insurance protects against ownership disputes. Escrow fees cover processing and document handling. Together, they usually run 0.5% to 1.5% of the sale price.
• Recording & Transfer Charges: Local governments charge to record the new deed and transfer property ownership. Expect $50 to $500 in recording fees and 0.1% to 1% of sale price in transfer taxes, depending on your state or county.

Additional costs you may encounter include:

• Prorated Property Taxes and HOA Fees: Sellers pay property taxes and homeowner association dues for the portion of the year they own the home. These amounts are prorated through the closing date.
• Home Inspection Repairs: If the buyer negotiates repair credits after inspection, you might cover minor fixes or offer a credit, typically $500–$2,000 on average.
• Home Warranty or Buyer Concessions: Some sellers purchase a 1-year home warranty (around $300–$600) or offer concessions such as covering closing costs for the buyer to sweeten the deal.

Here’s a quick example for a $400,000 home sale:

• Agent Commissions (6%): $24,000
• Title & Escrow (1%): $4,000
• Transfer Taxes & Recording (0.5%): $2,000
• Prorated Taxes & HOA: $1,200
• Inspection Repairs & Concessions: $1,500

Total Estimated Seller Costs: ~$32,700 (8.2% of sale price)

Costs vary significantly by state, sale price, and negotiation terms. Sellers in states like New York or California often face higher transfer taxes and title fees, while sellers in Texas or Florida might pay less in those categories.

Before closing, review your settlement statement (HUD-1 or Closing Disclosure) with your agent or escrow officer. Buyers are recommended to verify all prorations and fees, and it’s advisable to consult a licensed real estate attorney or local agent to confirm state-specific requirements.

By understanding and budgeting for these typical closing costs, you’ll walk into the sale with confidence and walk away with a clearer picture of your net proceeds.