The costs, item by item
| Cost | What it is | How much |
|---|---|---|
| Commissions | Your listing broker's fee, plus any buyer-agent pay you agree to | Negotiable; Nolo describes a traditional total of about 5% to 6% |
| Seller closing costs | Title and escrow or attorney fees, the owner's title policy where customary, recording and payoff fees | Varies by state and custom |
| Transfer taxes | State or local tax on the transfer of property | Varies widely; some places have none |
| Prorated property taxes and HOA dues | Your share up to the closing date | Depends on your bill |
| Repairs and preparation | Fixes before listing or after the buyer's inspection | Your choice |
| Concessions | Credits toward the buyer's closing costs or repairs | Negotiated; capped by the buyer's loan program |
| Mortgage payoff | Not a cost, but it comes out of your proceeds | Your payoff statement |
| Moving | Movers, storage, overlapping housing costs | Your choice |
Commissions after the 2024 NAR settlement
Since August 17, 2024, listing brokers can't advertise buyer-agent pay on the MLS, and buyers sign written agreements with their own agents. Sellers can still agree to pay a buyer's agent or offer concessions. Commissions are fully negotiable and not set by law, so discuss both your listing fee and whether you'll offer anything toward the buyer's agent before you list.
Worked example
A home sells for $400,000 with a $230,000 payoff. The cost figures below are example inputs, not national averages.
| Item | Amount |
|---|---|
| Sale price | $400,000 |
| Commissions (5.5%) | −$22,000 |
| Transfer tax (example) | −$2,000 |
| Title, escrow and other closing fees (example) | −$3,000 |
| Credit to buyer after inspection | −$5,000 |
| Mortgage payoff | −$230,000 |
| Cash at closing | $138,000 |
| Repairs before listing (paid separately) | −$4,000 |
| Moving (paid separately) | −$3,000 |
| Net after all costs | $131,000 |
Plug in your own price, payoff and fees with the home sale calculator, or check commission options with the real estate commission calculator.
Taxes on the sale
Selling costs such as commissions reduce your gain for tax purposes, and improvements add to your basis. See what tax basis is and estimate any tax with the capital gains tax calculator.
Transfer taxes and who pays them
Transfer taxes are set by states, counties and sometimes cities, so the rate and who customarily pays depend on where the home is. In some places the seller pays, in others the buyer, and in some the cost is split or there's no tax at all. Your title company, closing attorney or agent can tell you the local rate and custom before you list, and the contract can change who pays.
Ways to lower the cost
- Interview several listing agents and negotiate the commission and services.
- Get a pre-listing inspection so repair requests don't surprise you.
- Ask your mortgage servicer about any prepayment penalty before you list.
- Time the move to avoid paying two housing costs at once, if you can.
Sources: Nolo: agent or lawyer; NAR: what the settlement means; CFPB: closing costs; IRS Publication 551.
Every worked example on this page was checked with Calcist's own engine and an independent reference.