Closing Costs Associated with Selling Your Home

Closing costs for home sellers typically total 6% to 10% of the final sale price, and most of that goes to real estate agent commissions.

The rest covers transfer taxes, title and escrow fees, attorney fees, your share of property taxes and HOA dues, any credits you give the buyer, and the payoff of your mortgage. On a $400,000 house, that comes to roughly $24,000 to $40,000.

Bentley's Real Estate helps sellers in Greater Newburyport, Massachusetts, figure out what they will owe at closing and what they will net. We are the #1 real estate brokerage in Greater Newburyport by market share.

The short answer: most of these charges come out of your proceeds on closing day, so you usually won't need to bring cash, unless you owe more on the loan than the home sells for.

Which closing costs sellers usually pay

On the deduction side, sellers usually pay agent commissions, transfer taxes, the owner's title insurance policy, part of the escrow or settlement charges, attorney fees, and prorated taxes and dues. "Closing costs" is the catchall name for everything associated with finishing a real estate transaction.

Both sides pay some of it. And who covers what is often negotiable, with the split varying depending on the state.

Cost	What it covers	Typical range	Can you negotiate it?
Agent commissions	Listing agent and, often, the buyer's agent	5% to 6% of sale price	Yes
Transfer taxes	State and local tax to transfer the title	$0 to thousands, by state	Who pays can be
Owner's title insurance	Protects the new owner against title claims	Around 0.5% of sale price	Shop providers
Escrow and settlement	Neutral party that holds funds and records documents	Varies by state	Often split
Attorney fees	Contract review and the closing itself	$500 to $1,500 for a standard sale	Get quotes
Prorated taxes and HOA dues	Your share up to the closing date	Depends on timing	No
Seller concessions	Credits toward the buyer's costs or repairs	1% to 3% of sale price	Yes
Mortgage payoff	Remaining balance plus accrued interest	Your balance	No

Before you sign a listing agreement, ask your agent for a net sheet.

Agent commissions

On that net sheet, most sellers notice the commission first. It is usually the biggest single expense, typically 5% to 6% of the sale price split between the listing agent and the buyer's agent.

Commissions have always been negotiable. Since the 2024 NAR settlement, buyers may negotiate and pay their own agent separately, although many sellers still offer some buyer-agent compensation to attract offers.

What a full-service listing agent handles	What to weigh
Pricing, marketing, and negotiation	The highest line on your settlement statement
A buffer when repair requests and concessions come up	Rates and services vary, so compare
Help reading the closing statement	A lower rate can cost more if the price drops

So ask what a commission covers as well as what it costs.

Transfer taxes and title insurance

Once the commission is settled, the next charges are the government's share, which isn't negotiable, and the protection on your title. Transfer taxes are state and local taxes on moving ownership from you to the buyer, and they range from $0 in some states to thousands of dollars in others.

In Massachusetts, the deed stamp tax costs, on average, $4.56 per $1,000 of the sale price.

Title insurance protects the new owner against claims, such as outstanding liens or ownership disputes. In many markets the seller pays for the owner's policy, typically around 0.5% of the sale price, while the buyer pays for the lender's policy.

If you bought only a few years ago, ask about a reissue rate on that policy.

Attorney and escrow fees in Massachusetts

Your title company won't be the only professional at the table, either.

Massachusetts is one of several states that require a real estate attorney at closing.

Attorney fees for a standard residential sale typically run $500 to $1,500, and more for complex cases. Escrow or settlement charges pay the neutral party that holds funds and records documents, and they are often split between both sides.

Get attorney quotes early. Ask for a flat rate so you know the total amount upfront.

Prorated property taxes and HOA dues

Some of the figures your attorney prepares depend on the calendar. Sellers pay their share of property taxes up to the exact day the sale closes, and the buyer picks up from there.

Homeowners association dues work the same way, and some associations also charge a transfer fee, so request the HOA fee schedule early in the listing process.

Because your closing date moves these prorations, ask your agent or attorney how a different date would change what you owe if your timing is flexible.

Seller concessions, repairs, and staging

Bigger swings usually show up earlier in the deal, right after the buyer's inspection. Seller concessions are credits you give the buyer for repairs, closing help, or a home warranty, and they typically run 1% to 3% of the sale price, or $4,000 to $12,000 on a $400,000 home.

Repairs and staging are not technically closing costs. Still, they lower your net.

Option	Best fit	Tradeoff
Offer a credit	The inspection turns up a moderate issue	Lowers your proceeds, keeps the deal moving
Complete the repair	The lender or buyer needs the fix before closing	You control the work, but costs can grow
Reduce the price	Larger issues or a cooling market	Simple, but permanent

A pre-listing inspection typically costs $300 to $600 and can surface problems before the buyer's inspector does. That gives you time to get repair bids instead of negotiating under pressure.

Mortgage payoff and capital gains

Once credits and repairs are agreed, what remains is mostly your loan and your taxes. If you still owe on your mortgage, the balance is paid off at closing, plus interest up to the payoff date.

Prepayment penalties are less common now. Still, some older or adjustable-rate loans include them, so request a payoff statement from your lender.

Capital gains taxes may apply if you profit from the sale. Most homeowners can exclude up to $250,000 of gains, or $500,000 for married couples filing jointly, if they owned and lived in the home for at least two of the last five years.

Talk to a tax professional about your own situation.

Keep receipts for improvements. They can raise your cost basis and lower any taxable gain.

Estimating your net proceeds

With those pieces in view, here is a simple worksheet for a $400,000 sale price:

Line item	Estimated range
Agent commissions (5% to 6%)	$20,000 to $24,000
Other closing fees (1% to 3%)	$4,000 to $12,000
Total (6% to 10%)	$24,000 to $40,000
Net before mortgage payoff	$360,000 to $376,000

From there, subtract your mortgage payoff, any concessions, and moving expenses. Buyers pay their own closing costs, typically 2% to 5% of the purchase price, so if you are buying your next home, budget for both sides.

Ways to lower seller closing costs

Once you see the range on paper, you can start shrinking it:

• Negotiate with the buyer to split typical charges
• Talk through commissions and services with your listing agent
• Compare title, escrow, and attorney providers
• Price the home well so there is less room for concession requests

Selling in Greater Newburyport with Bentley's

Each step is easier with someone local beside you. We help sellers across Newburyport, Amesbury, Newbury, Plum Island, West Newbury, Salisbury, and Rowley understand their closing costs before they list.

Bentley's has been the #1 brokerage in Greater Newburyport by market share seven years running, and our 60+ agents know how local deals come together, from the purchase agreement to the attorney-led closing.

Every sale is different, so confirm the specifics with your attorney, lender, and tax professional. When you want to talk through your numbers, call us at (978) 572-1200.