“What Every Seller Should Know About Closing Costs”

When you sell your home, it’s easy to focus on the sale price — but what really matters is how much you take home after closing. Many sellers are surprised to learn that selling a home comes with several expenses known as closing costs.

Understanding these costs upfront helps you plan better, price your home strategically, and avoid last-minute surprises.

1. What Are Closing Costs?

Closing costs are the fees and expenses you pay to finalize the sale of your property. They cover things like title transfers, taxes, legal services, and commissions. These typically amount to 6%–10% of your home’s selling price, depending on your location and the specifics of your deal.

2. Common Closing Costs for Home Sellers

💼 Agent Commission

This is often the largest expense, usually 5%–6% of the home’s sale price. It’s typically split between the listing agent and the buyer’s agent.

🧾 Title and Escrow Fees

These cover the legal paperwork needed to transfer ownership and ensure the title is free of liens or disputes.

🏛️ Transfer Taxes and Recording Fees

Local or state governments charge these fees to officially record the sale and transfer the property title.

🧹 Home Repairs or Concessions

If your buyer’s inspection finds issues, you may agree to repair them or offer a credit at closing instead.

💡 Outstanding Liens or HOA Fees

Any unpaid property taxes, utility bills, or HOA dues must be settled before you can close.

🏠 Attorney or Settlement Fees

Depending on your state, you may need a real estate attorney to review documents and oversee the sale.

3. Who Pays What?

While sellers usually handle most of these fees, some costs can be negotiated. For example, a motivated buyer might agree to share certain closing costs in exchange for a better purchase price.

4. How to Estimate Your Net Proceeds

Before listing, ask your agent for a Net Sheet — a breakdown of estimated closing costs and your expected profit after the sale. This gives you a clear picture of what you’ll actually pocket.

5. Tips to Reduce Closing Costs

• Shop around for services like escrow or title insurance.

• Negotiate commissions if your property is in high demand.

• Handle small repairs early to avoid larger credits later.

• Time your sale wisely to minimize property taxes or HOA dues due at closing.

🧠 Final Thoughts

Closing costs are a normal part of selling a home, but being informed helps you stay in control. With a solid understanding of what to expect — and a great agent by your side — you can walk away from the closing table with confidence and a clear financial picture.