What Sellers Need to Know About Closing Costs Before Listing Their Home
When you decide to sell your home, it’s easy to look at your remaining mortgage balance and assume that’s the amount you need to list for or the amount you need to walk away with. But selling a home comes with additional costs that many people don’t expect, and understanding those upfront can make the entire process smoother and far less stressful.
Here’s a simple breakdown of what every seller should know.
1. Your Payoff Balance Isn’t Your “Break-Even” Number
Just because you owe a certain amount on your mortgage doesn’t mean you can list your home for that exact number and walk away even.
Sellers have closing costs, and those costs typically start around $5,000+, depending on the property. These may include:
- Title fees
- Recording fees
- Taxes
- HOA documents (if applicable)
- Miscellaneous transaction fees
All of this comes out of your proceeds at closing, so it’s important to factor it in early.
2. Don’t Forget About Real Estate Commission
Commission is another closing cost for sellers, and it’s generally around 6% of the purchase price (split between the listing and buyer’s agents).
This amount is taken out of your proceeds, not paid upfront—but it does affect your bottom line.
Working with the right agent means you’ll have someone who can clearly show you how commission and other costs impact your final estimated amount.
3. Buyers May Ask You to Cover Some of Their Closing Costs
It’s becoming more common for buyers to ask sellers to contribute toward or fully cover their closing costs.
This isn’t because buyers are trying to get a “deal”—it’s usually because:
- Their cash is tied up in their down payment
- They’ve saved enough to purchase the home, but not enough to cover extra expenses
- Loan programs allow the seller to help
If you agree to pay a portion of the buyer’s closing costs, that amount also comes from your proceeds. It doesn’t mean you receive less for the home—just that the net amount you walk away with will change.
An agent should help you understand when this makes sense and when it doesn’t.
4. The Right Agent Will Keep You Fully Informed—Every Step of the Way
One of the biggest benefits of working with an experienced agent is that you’re never guessing your numbers.
Throughout the process, I keep sellers:
- Updated with net sheets showing your estimated proceeds
- Informed every time an offer comes in
- Aware of how much you’ll walk away with after closing costs, commission, and any buyer concessions
- Clear on what offers are wise to accept vs. ones that may not make financial sense
The goal is always to help you make confident decisions—not rushed ones.
5. Understanding Your Net = Less Stress and Better Results
When you know your payoff, expected closing costs, commission, and potential buyer concessions, you avoid surprises. You go into every offer with clarity instead of confusion.
Selling a home should feel empowering, not overwhelming—and the right guidance makes all the difference.
If you’d like help estimating your net proceeds or want to know what your home could sell for in today’s market, I’d love to walk you through it.
Mariah Youngbull, Realtor – 580.210.8821