Quick Answer
What Closing Costs Do Sellers Pay?
When you sell a house, your closing costs typically include transfer taxes, title fees, escrow or settlement fees and any credits you agree to give the buyer. The biggest cost for most sellers is not on that list: it is the real estate commission. A listing agent commonly charges 2.5% to 3% of the sale price, and buyer’s agent compensation is now a separate, negotiable item. Cutting the listing commission is the single largest way to keep more of your equity.
What Are Closing Costs When Selling a House?
“Closing costs” is a catchall for the fees needed to transfer ownership and finish the sale. According to Bankrate, common seller closing costs include:
| Closing cost | What it covers | Typical amount |
|---|---|---|
| Transfer taxes | State or local tax to transfer the deed | Varies widely by state and county |
| Title-related fees | Title search and title insurance | About $1,600 on average (Urban Institute data cited by Bankrate) |
| Escrow or settlement fees | The neutral third party that holds funds and documents | Varies by provider and state |
| Attorney fees | Required in some states | Varies |
| Mortgage payoff | Your remaining loan balance | Your balance |
| Seller concessions | Credits you offer toward the buyer’s costs | Negotiated |
The good news is that these costs usually come out of your sale proceeds at closing, so most sellers do not need to bring cash to the table. Federal rules require both sides to receive a closing disclosure or settlement statement with the final numbers before closing.
New to the process? Our Escrow 101 guide explains what happens between accepted offer and closing day.
How Much Are Closing Costs for a House?
You will see a lot of different numbers online because some sources include commissions and some do not. Here is a cleaner way to think about it:
- Buyer closing costs run around 2% to 5% of the loan amount, according to Freddie Mac data cited by Bankrate. Those are mostly lender fees, appraisal and title costs on the buyer’s side.
- Seller closing costs without commission are mostly taxes and title fees, and they vary heavily by state. A seller in a state with a high transfer tax will pay noticeably more than one in a state with little or none.
- Seller costs with commission jump sharply, because commission is usually the largest single line item.
Agent Fee for Selling a House: How Commissions Work Now
Real estate commissions have always been negotiable. Bankrate notes a listing agent’s commission typically runs between 2.5% and 3% of the sale price, and that covering the buyer’s agent can roughly double that amount.
On a home at the national median price of $429,100 (NAR, August 2026), here is what that looks like:
| Listing commission rate | Cost on $429,100 |
|---|---|
| 2.5% | $10,727.50 |
| 3.0% | $12,873.00 |
That is money that comes straight out of your equity at closing.
Who Pays the Buyer’s Agent Commission?
This is the question that changed the most. Under the National Association of REALTORS® settlement rules that took effect August 17, 2024:
- Offers of buyer’s agent compensation can no longer appear on the MLS. Sellers can still choose to offer compensation, but it is communicated off the MLS or negotiated as part of an offer.
- Buyers must sign a written agreement with their agent before touring a home, and it must spell out what that agent will be paid.
- Commissions remain negotiable, as they always have been.
Source: NAR settlement Q&A and NAR’s practice change summary.
In practice, many sellers still choose to help cover the buyer’s agent to attract more buyers. Redfin reported the average buyer’s agent commission was 2.42% in the third quarter of 2025, close to where it was before the settlement (Inman coverage of Redfin’s report). On a $429,100 home, 2.42% would be about $10,384.
The key word is choice. With List With Freedom, you decide whether and how much buyer’s agent compensation to offer, and you can negotiate it offer by offer. You are not required by the MLS to offer a buyer’s agent commission.
How to Lower Your Real Estate Fees
You do not have to accept the old way of paying for a home sale. Here are the levers that actually move the number:
- Change how you pay for the listing. A flat fee MLS listing gets your home on the MLS and major home search sites without a percentage-based listing commission.
- Treat buyer’s agent compensation as a negotiation, not an automatic expense.
- Ask the buyer to split certain closing costs. Many fees can be shared, depending on local custom.
- Shop title and settlement providers where your state allows it.
- Price it right the first time, so you do not end up giving price cuts or bigger concessions later.
Quick math on a $429,100 home:
Traditional 2.5% listing commission: $10,727.50
List With Freedom Platinum: $195 upfront + 0.25% compliance fee at closing ($1,072.75) = $1,267.75
You save: $9,459.75 on the listing side
With the Gold package ($89 upfront + 0.50% compliance fee at closing), the total listing cost would be $2,234.50.
Buyer’s agent compensation, if you choose to offer it, and standard closing costs like title and transfer taxes are separate in every scenario. Savings vary by home price, package and the choices you make.
This isn’t a discount service. It’s better pricing, made possible by technology. Every List With Freedom package includes MLS listing within 24 hours once paperwork is complete, syndication to Zillow, Realtor.com, Homes.com, Redfin and more, all required forms and disclosures, buyer inquiries sent directly to you and a Closing Transaction Coordinator to help keep your sale on track. Compare packages on our pricing page.
Frequently Asked Questions
What closing costs does the seller pay?
Sellers commonly pay transfer taxes, title-related fees, escrow or settlement fees, attorney fees where required, their mortgage payoff and any concessions they agree to. Agent commissions are also usually paid at closing.
Does the seller have to pay the buyer’s agent?
No. Since August 2024, offers of buyer’s agent compensation cannot appear on the MLS, and buyers sign their own written agreement with their agent. Sellers can still choose to offer compensation or a concession as part of negotiations.
What is the typical agent fee for selling a house?
A listing agent commonly charges 2.5% to 3% of the sale price, according to Bankrate. Buyer’s agent compensation is separate and negotiable.
Are real estate commissions negotiable?
Yes. Commissions have always been negotiable, and NAR’s settlement materials say so directly.
Do I pay closing costs out of pocket?
Usually not. Seller closing costs are typically deducted from your sale proceeds at closing.
Does List With Freedom charge anything at closing?
Yes. There is a small compliance fee when your home sells: 0.25% for Platinum and Platinum Plus, or 0.50% for Gold. It covers the cost of keeping your listing compliant with state laws and MLS rules.
Sources
- Bankrate, Closing costs when selling a house (June 2026)
- National Association of REALTORS®, Settlement Q&A and The Facts
- National Association of REALTORS®, Existing-Home Sales, August 2026
- Inman, Buyer’s agent commissions rebound in wake of settlement (reporting Redfin data, December 2025)
- List With Freedom, Pricing and packages
