Seller Closing Costs: What You Actually Net
Sale price is not proceeds. Here is every deduction between the two, and how to estimate your net before you list.
Fact-checked and reviewed for financial accuracy by Priya Kannan, CFP®. Read our content review process.
Sellers commonly pay 6 to 10 percent of the sale price in total costs, with commission the largest component. Knowing the number before listing prevents an unpleasant surprise at the settlement table.
The line items
| Item | Typical amount | Notes |
|---|---|---|
| Real estate commission | $11,250 – $27,000 | Negotiable; structure varies by market and agreement |
| Transfer and recording taxes | $0 – $9,000 | Set by state, county, and sometimes city |
| Title and settlement fees | $700 – $2,500 | Some states assign the owner's policy to the seller |
| Attorney fee | $400 – $1,200 | Required in some states |
| Prorated property taxes | Varies | Your share of the tax year up to closing |
| HOA transfer and document fees | $200 – $800 | If applicable |
| Repairs and credits negotiated | Varies | Result of inspection negotiation |
| Buyer closing cost concessions | $0 – 3% of price | If agreed in the contract |
| Mortgage payoff | Loan balance plus interest | Includes interest through the payoff date |
Estimating net proceeds
Net proceeds equal sale price, minus commission, minus other closing costs, minus mortgage payoff, minus concessions and repair credits, plus any prorated escrow refund. Your agent or title company can produce a formal net sheet at any price you ask about — request one before you set the list price.
Capital gains, briefly
Under current federal rules, many sellers of a primary residence may exclude a substantial portion of gain if they owned and lived in the home for at least two of the previous five years. Exclusion amounts and eligibility rules are specific, and gain is calculated from your adjusted cost basis, which includes qualifying improvements. This is a question for a tax professional, not a rule of thumb.
After closing
- Confirm your mortgage shows a zero balance and the lien release records
- Expect an escrow refund from your former lender within a few weeks
- Cancel homeowners insurance effective after recording, not before
- Keep the closing statement for your tax records
Frequently asked questions
Are real estate commissions negotiable?
Yes. Commission rates and how buyer-side compensation is handled are set by agreement, not by law, and practices have changed in recent years. Ask each agent to explain their fee and what it includes.
Who pays transfer taxes?
It varies by state and local custom, and is negotiable in the contract. In some jurisdictions the seller pays entirely; in others the parties split it.
When do I get my money after closing?
Commonly the same day or the next business day by wire, though some states use a recording-first process that adds a day or two.
Editorial note. This article is educational and is not financial, tax, or legal advice. Loan terms, rates, insurance costs, and tax rules vary by lender, state, and individual circumstance. Figures shown are illustrative. Confirm details with a licensed lender, tax professional, or attorney before making a decision.
