Closing costs when selling a house: what to expect
Published October 9, 2026
Key takeaways
Most seller closing costs come out of your sale proceeds at closing, not out of pocket before the sale.- On a traditional sale, agent commission is typically the largest cost, along with title and escrow fees, transfer taxes, and prorated property taxes.
- When you sell with SellMyHouse.co, there’s no agent commission and we pay typical closing costs. Transfer taxes and recording fees still apply.
When you sell a house, most of the costs involved come out of your sale proceeds at closing rather than out of pocket before the sale. Understanding what each cost covers helps you plan for what you’ll walk away with. Here’s a breakdown of what sellers typically pay and what changes depending on how you sell.
Agent commission
On a traditional sale with a real estate agent, the commission is typically the largest line item for sellers. Commissions are negotiable, but the total has historically run 5.7% of the sale price, split between the listing agent and the buyer’s agent. That structure has shifted since the 2024 NAR settlement, and what a seller actually owes today depends on the specific agreement with their agent.
The commission comes out of your sale proceeds at closing, so you don’t write a check for it separately. But it’s worth understanding upfront, since it’s typically the single largest factor in your net proceeds.
Title and escrow fees
Title fees cover the process of verifying that the property’s ownership history is clear and transferring legal title to the buyer. In most markets, sellers pay for the owner’s title insurance policy, which protects the buyer against future claims on the property’s ownership. Title insurance premiums typically run in the range of $1,500 to $4,000 or more, depending on the sale price and where the property is located.
Escrow fees cover the neutral third party that holds documents and funds during the transaction and coordinates the actual transfer at closing. Whether a title company, escrow company, or real estate attorney handles closing depends on where you are. In some states, a real estate attorney’s presence at closing is required.
Transfer taxes and recording fees
Some state and local governments charge a tax when a property changes hands. These go by different names depending on the state: transfer tax, deed stamp, excise tax, or documentary stamp. Rates vary widely by location. Some states charge no transfer tax at all, while others charge 1% to 2% of the sale price or more. Recording fees, the cost of officially updating the public record with the new ownership, are usually a smaller flat fee.
Your closing statement will show what applies in your area. An attorney or title professional can walk you through what’s customary in your state.
Prorated property taxes and HOA dues
Sellers typically owe their share of the year’s property taxes based on how many days they owned the home during that tax year. If taxes are paid in arrears (which means you pay for the prior period at the end of it), you’ll owe the portion that’s accrued up to your closing date. The math is handled on the closing statement.
If your property is in a homeowners association, HOA transfer fees may also apply. These are fees the HOA charges to update their records and transfer membership to the new owner. The amount varies by association.
Frequently asked questions
That depends on the agreement. When you sell with SellMyHouse.co, typical closing costs are paid on your behalf. The buyer’s side may have its own costs. What matters for you as the seller is what comes out of your proceeds, and the terms of any offer you receive will spell that out.
A seller’s net sheet is an estimate of what you’ll walk away with after all costs and fees are deducted from the sale price. Your agent or a title professional can prepare one based on your situation. It’s a useful planning tool before you decide how to sell.
It depends on the terms of the sale. When you sell with SellMyHouse.co, we pay typical closing costs. Transfer taxes and recording fees set by state and local law still apply. There’s no agent commission deducted from your offer.
Some costs are negotiable and some aren’t. Agent commissions are negotiable. Transfer taxes and recording fees are set by state and local law and not negotiable. Title insurance premiums and escrow fees vary by provider and can sometimes be shopped. A real estate attorney or agent can help you understand which fees have flexibility.
Most seller closing costs come out of your proceeds at closing rather than being paid out of pocket beforehand. You’ll receive a closing statement that shows each fee and what your net proceeds will be.
On a traditional sale, sellers typically pay agent commission, title and escrow fees, owner’s title insurance, transfer taxes, and prorated property taxes. HOA transfer fees may apply if the property is in an association. The total varies depending on location, sale price, and whether there’s an agent involved.
