What do Seller Closing Costs Include?

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When people are selling a home, they don’t usually consider the costs associated with it. Although you’ll certainly make a lot of money from selling a home, you can’t neglect the various costs that you’ll also have to pay. Not being adequately prepared for closing costs as the seller could eat into your profits, and may even prove to be a huge financial burden. So while you break out the seller closing costs calculator to figure out exactly how much you’re going to owe as a seller, what should you factor into the equation? Here are the main seller closing costs that you should look out for. 


One of the first expenses you’ll have to deal with as a seller is the cost of a home appraisal. When you make the decision to sell your home, you need to have someone come in and evaluate your home. This person is known as the appraiser and will give you a value your home is worth. A home appraiser is a qualified professional that can make an educated estimate on your home’s worth thanks to years of real estate experience. An appraisal is critical to the seller, as it gives the seller an idea of how much they can sell their home for on the open market. Typically appraisals cost anywhere between a few hundred to a thousand dollars depending on the size of the property, condition of the home, and how in detail the appraisal goes. Although an appraisal is necessary for the seller, it is just the first of many costs the seller will have to pay when selling their home. 

Title Insurance

When closing on a home, both the buyer and the seller usually buy a form of title insurance, helping to protect both parties in case something goes wrong with the house’s title. Title insurance isn’t that big of an expense, as it usually only ranges from a few hundred to a thousand dollars. However, the expense is still necessary, as you want to protect yourself from financial loss if there happens to be a defect in the title. That being said, this is just another expense that you’ll have to save for when selling a home. 

Home Inspection

Very similar to a home appraisal is a home inspection. However, rather than looking for what your home is valued at, a home inspector instead checks to make sure your home is structurally sound. A home inspection will ensure that your home has no major defects or problems and is ready to be sold on the open market. A seller needs a good report on their home inspection to inspire confidence in buyers. Unfortunately, paying a home inspector could cost you several hundred dollars, adding just another expense you’ll have to pay for as a home seller. 

Real Estate Commission

One of the biggest expenses that a seller has to pay is the real estate commission. Real estate agents typically take around 5% of the final sale price, which can be a hefty fee. For example, if you sell a home for $200,000, your real estate agent will likely take around $5,000 for commission. The more your home sells for, the more you’ll have to pay in commission. Due to the high price, some people opt to sell their home without a real estate agent. However, this can be extremely risky as real estate agents bring a lot to the table. Their knowledge of the local real estate market can help a lot through the sale process, and their expert negotiating skills can help land you a better deal. As a result, most people find this cost of selling to be well worth the price. 

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