How Much Do Home Sellers Pay in Closing Costs?

Specifically, you will spend between 3-6% of your total expenses on closing costs. Closing costs are fees, inspections, and any additional charges for attorneys or appraisals. The easiest way to budget for closing costs is by using a seller closing cost calculator. Let’s review a bit more about closing costs so you can be the most prepared.


Closing costs can be broken down into averages by state and your local markets. Anywhere there are numbers, statistics can be drawn. All you need to do is a little research and you can be sure to estimate your costs. You can also take a peek at housing prices by browsing apps and real estate websites as well. You can narrow this down by zip code.

If most of the homes in your area are selling for about $150,000 for updated 2 bedroom, 1 bath homes, then you can use this information to determine how much you may need to save in your desired area and what you may spend on your sale in your current location. The market is always changing so don’t expect it to be the same every time you look at prices. 

As we move more into 2022, the average rates will be rising on homes and there may be scarce options in your area if folks are holding on due to these hikes. It would be good to give yourself enough cushion if you plan on saving for a move or sale for the changing prices. There is usually no downside to saving more money than you anticipated.


There are plenty of unavoidable fees when it comes to purchasing or selling a new home. In some states, there are laws to protect buyers and sellers in which you cannot even close on a home without having a real estate attorney. Some fees are there to protect both parties such as escrow fees, insurance, and transfer fees. Plenty of folks to be paid in the process of selling.

Sellers can also see seller concessions. This means that if you as the purchaser take out a conventional loan and your down payment was less than 10%, the max that the seller you buying from can contribute is 3% to the closing costs. 

However, on the contrary, if your closing costs come to less than 3% of your home value, the seller can contribute up to 100% of the closing costs. Apply this to your specific home buying or selling situation to determine what kind of spending is on your horizon. 

More Fees

Sellers can also expect to pay a homeowners association fee as well. Most towns have standards of living in the community. If you can’t keep up with your locality’s rules and laws, you can get fined. Additionally, some folks pay to live in certain areas with amenities. Generally, upon the sale of a home, this will be paid for by the seller. 

There is a lot of people involved with selling or buying a home and that includes those that do inspections. If purchasing a new home, you most certainly want to make sure you’re not moving into a home that has rodents or pests. This fee is usually paid for by the seller as well. 

Finally, there are of course real estate agent commissions that sellers pay for as well. This is only if you have an agent working on your behalf. However, this is generally quite a small percentage and is usually well deserved. You can avoid this by not utilizing an agent, but you should be savvy in real estate yourself if you don’t use an expert.

There is no avoiding that large chunks of money are going to be spent on selling your home or purchasing a new one. Hopefully, some of these ideas can help you prepare as much as you can if you anticipate selling your home or looking for a new one soon. 

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