What Costs Do Sellers Actually Pay? (Spoiler: It's More Than Packing Boxes.)
One of the biggest questions I hear from sellers is:
"So...how much is this actually going to cost me?"
It's a fair question.
Most people know they'll receive money from the sale of their home, but many are surprised to learn there are expenses that come out of those proceeds before the final check hits their bank account.
Let's break down the most common costs sellers pay so you know what to expect.
Mortgage payoff
If you still have a mortgage on your home, the remaining loan balance will be paid off at closing.
This is usually the largest deduction from your proceeds.
The title company works directly with your lender to obtain the exact payoff amount, so you don't have to calculate it yourself.
Title and escrow fees
The title and escrow company handles the behind-the-scenes work that keeps your transaction moving smoothly.
They coordinate the closing, hold funds securely, prepare documents, record the deed with the county, and make sure everyone gets paid correctly.
There are fees associated with these services, and they're typically paid from the seller's proceeds at closing.
Owner's title insurance
In Oregon and Washington, it's common for the seller to pay for the buyer's owner's title insurance policy.
This protects the buyer against certain title issues that may have existed before they purchased the property.
The exact costs can vary depending on the sales price and the title company handling the transaction.
Real estate commission
Real estate broker compensation is negotiable and is agreed upon before your home is listed.
Every transaction is different, so it's important to understand exactly what services are included and how compensation is structured before signing a listing agreement.
Repairs or buyer credits
Not every sale includes repairs or credits, but they can come up after the home inspection.
Sometimes the seller agrees to make repairs before closing.
Other times, it's simpler to provide the buyer with a credit so they can complete the work after they take ownership.
Every negotiation is different, and there isn't a one-size-fits-all solution.
Property taxes and HOA dues
Property taxes and, if applicable, HOA dues are typically prorated based on the closing date.
That means each party pays their share for the time they owned the property.
The title company calculates these amounts for you, so there isn't any guesswork involved.
Are there any surprise fees?
Generally, no.
One of the nice things about selling a home is that you'll receive a settlement statement before closing that outlines exactly where every dollar is going.
You'll have the opportunity to review everything before signing the final paperwork.
No mystery math required.
How much will I actually walk away with?
That's the question everyone really wants answered.
The amount you'll receive depends on several factors, including:
Your sale price
Your remaining mortgage balance
Title and escrow fees
Broker compensation
Any agreed-upon repairs or buyer credits
Prorated taxes or HOA dues
The good news is that we can estimate your net proceeds before your home ever goes on the market, giving you a much clearer picture of what to expect.
My advice
One of the things I believe most strongly is that sellers shouldn't be surprised at the closing table.
Before we list your home, I'll walk you through the expected costs, prepare an estimated net proceeds sheet, and answer any questions you have along the way.
My goal is for you to understand exactly where your money is going before your home even hits the market.
Because the only surprise you should have at closing...
Is realizing how many times you've signed your name over the past month.
