The Ultimate Guide to Seller Closing Costs (2026 Edition)

A complete 2026 guide to seller closing costs — what they are, who pays what, how closing fees work, how to reduce them, and how FSBO sellers can save thousands by avoiding unnecessary charges.

If you're selling without a Realtor (FSBO), this guide explains every fee you may encounter at closing — including title insurance, escrow fees, transfer taxes, commissions, and more.

List Your Home FSBO on the MLS →

💰 Why Seller Closing Costs Matter in 2026

Closing costs are one of the most confusing — and expensive — parts of selling a home. Many homeowners don’t realize that sellers typically pay certain title fees, taxes, recording costs, and optional commissions.

Understanding these fees helps sellers:

  • Avoid unnecessary costs
  • Reduce or eliminate junk fees
  • Negotiate buyer requests confidently
  • Save thousands by selling FSBO with a Flat Fee MLS

For a comparison of escrow vs closing, see: Escrow vs Closing in Real Estate

For a detailed explainer on who pays what, visit: Who Pays Closing Costs?

📋 Table of Contents

  • What Are Seller Closing Costs?
  • Typical Closing Costs for Sellers
  • Who Pays What? (Buyer vs Seller)
  • How Much Do Sellers Pay at Closing?
  • Title Fees & Insurance
  • Transfer Taxes & Recording Fees
  • Commission Changes After the NAR Settlement
  • Seller Credits & Buyer Financing Costs
  • How FSBO Sellers Can Reduce Closing Costs
  • State-by-State Closing Cost Differences

🏷 What Are Seller Closing Costs?

Seller closing costs are the fees you must pay in order to legally transfer ownership of your property. These costs vary by state, but typically include:

  • Title search & title insurance fees
  • Transfer taxes
  • Recording fees
  • Escrow settlement fees
  • HOA document fees (if applicable)
  • Courier / wire fees
  • Real estate agent commissions (optional in 2026)

For a full breakdown of title-related terms, explore: What Is Title Insurance? • What Is a Title Search? • What Is a Title Defect?

Seller closing costs are different from buyer closing costs, which often include loan origination fees, appraisal fees, mortgage points, and lender charges. Learn about mortgage points here: What Is a Discount Point?

💵 Typical Seller Closing Costs (Full Breakdown)

Most sellers pay between 1% and 3% of the home’s price in closing costs — not including any optional commission to a buyer’s agent. Below is a complete breakdown of each major seller cost category.

🔍 Title Fees

Title fees ensure that ownership can legally be transferred to the buyer. These typically include:

  • Title search
  • Title examination
  • Title insurance (varies by state)
  • Title endorsements (optional or lender-required)

Learn more from your title cluster:

📑 Escrow / Settlement Fees

Escrow (or closing) fees are charged by the settlement company that handles the transaction. These fees cover:

To understand differences between escrow and closing, see:
Escrow vs Closing

See how escrow relates to your title work:
What Is a Title Company?

🏛 Transfer Taxes & Recording Fees

Many states charge a transfer tax when real estate changes hands. Sellers usually pay this fee unless negotiated differently.

  • State transfer tax
  • County transfer tax
  • City or municipal tax
  • Recording fees for filing the deed

To learn how deed transfer works, see:
What Is Conveyance of Title?

And the full deed explanation:
What Is a Deed?

🤝 Buyer Agent Commissions After the NAR Settlement (2024–2026)

As of 2024, the NAR settlement changed how buyer agent commissions work. Sellers are no longer obligated to offer a buyer agent commission. This directly reduces seller closing costs.

However, offering a small buyer agent commission (1%–3%) may increase showings or offer activity depending on your market.

Learn how commissions work now:
Who Pays the Buyer’s Agent After the NAR Settlement?

For financing-related negotiations that impact closing costs, see:
What Is a Financing Contingency?

💸 Seller Credits Toward Buyer Closing Costs

Some buyers request seller credits to reduce their own closing costs. These credits may be applied toward:

  • Loan origination fees
  • Discount points
  • Prepaids (insurance & taxes)
  • Appraisal gap coverage
  • Repair allowances

Learn more about loan charges:
What Is a Loan Origination Fee?

For buyers using appraisal gap coverage:
What Is an Appraisal Gap Contingency?

To understand how seller credits differ from concessions, see: What Are Seller Concessions?

Learn more about discount points:
What Is a Discount Point?

And how to evaluate offers with financing clauses:
How to Evaluate an Offer with a Financing Contingency

💡 How FSBO Sellers Can Reduce Closing Costs

One of the biggest advantages of selling FSBO is the ability to control your costs. Most seller fees are either negotiable or avoidable. Here are the most effective ways to reduce seller closing costs in 2026:

  • Use a Flat Fee MLS service instead of a 3% listing agent
  • Negotiate settlement (escrow) fees
  • Choose the title company (in states where sellers have that right)
  • Decline unnecessary title endorsements
  • Avoid offering a buyer agent commission unless needed
  • Limit seller credits unless they improve offer strength
  • Avoid junk fees and administrative padded charges

To understand what title companies do (and don’t do), see:
What Is a Title Company?

For deeper insight on reductions, review:
Sell Your Home Without Closing Fees

🚫 Fees That Are Illegal Under RESPA Section 8

Some closing costs are illegal under federal law. The Real Estate Settlement Procedures Act (RESPA), specifically Section 8, prohibits kickbacks, referral fees, and unearned charges.

Under RESPA Section 8, it is illegal for:

  • Lenders, title companies, or agents to pay or receive referral fees
  • Service providers to charge fees for services not actually performed
  • Undisclosed payments meant to influence settlement service providers

Learn more:
What Is RESPA Section 8?

If a fee seems suspicious or unexplained, ask your settlement agent for a line-by-line justification.

🏘 HOA Fees & Special Assessments

If your home is part of a homeowners association (HOA), additional closing costs may apply. These often include:

  • HOA estoppel or status letter fees
  • HOA transfer fees
  • Outstanding dues
  • Special assessments (if not previously paid)

For a full explanation of how HOAs work, see:
What Is an HOA?

🌎 State-by-State Differences in Closing Costs

Seller closing costs vary dramatically by state. Some states require sellers to pay for title insurance, while others require buyers to pay. Transfer taxes and recording fees also differ widely.

For example:

  • Florida sellers often pay for title insurance — unless negotiated otherwise
  • California sellers typically pay higher transfer taxes in certain cities
  • New York sellers face some of the highest closing costs due to local taxes
  • Texas sellers benefit from no state transfer tax

See our MLS-by-state directory for local guides:
How to List on MLS by State

And FSBO state guides begin here:
How to Sell a House Without a Realtor

🚀 Ready to Reduce Your Closing Costs?

Selling FSBO with a Flat Fee MLS service is one of the easiest ways to eliminate unnecessary fees while keeping full control of your sale. Brokerless helps homeowners list on the MLS for a low upfront fee — saving thousands in commissions.

View Flat Fee MLS Packages →