# Seller Costs: Who Pays When a House Changes Hands
Sellers bear the largest financial burden when closing a home sale. Real estate agent commissions typically run 5-6% of the sale price, split between the listing agent and buyer's agent. The seller pays this entire amount from proceeds.
Beyond commissions, sellers cover closing costs that buyers often negotiate away. These expenses include title insurance, attorney fees, recording fees, and transfer taxes. Many sellers also pay for home inspections requested by buyers, repairs identified during inspections, and pest control treatments.
Property taxes present another expense. Sellers pay prorated taxes for the portion of the year they owned the home. Some states impose transfer taxes or documentary stamp taxes on the seller exclusively.
Sellers can negotiate which party covers specific costs. In hot markets, sellers cover more expenses to close deals faster. In buyer-heavy markets, sellers push costs to buyers through negotiations.
The timing matters. Sellers who close quickly avoid carrying costs like mortgage interest and property taxes beyond the sale date. Delayed closings extend seller expenses significantly.
Sellers should budget 8-10% of the home's sale price for total closing costs. In a $400,000 sale, that translates to $32,000-$40,000. Working with a real estate agent and attorney helps sellers understand which costs apply in their specific state and market.