If you're thinking about selling your home this year, you’ve probably been monitoring its value for a while so you can sell and still get a substantial profit. But before you start counting how much money you’ll make, don’t forget to factor in seller closing costs into the sale price. Let's take a closer look at closing costs and an overview of the fees that will be deducted from your overall profit. “Closing costs” is a catchall term for the various fees and expenses you must pay upon closing or completing a real estate transaction. These can include various fees, expenses, and charges, which are split between the home's buyer and seller. These fees do not include realtor commissions. The exact fees can vary depending on your location and the house’s cost. But in total, closing fees can add up to around 2 to 5 percent of the home’s sale price, according to Freddie Mac. Sellers usually take these costs out of their sale proceeds (unless you specifically ask to pay them separately), while buyers need to pay them upfront. - Transfer tax: Most states or local governments charge some form of transfer tax. - Title-related fees: In most markets, it is the seller who pays for the owner’s title insurance. - Attorney fees: In some states, home sellers are required to have a real estate attorney. - Escrow or settlement fees: Funds are usually held in escrow during the course of a real estate transaction. - Prorated property taxes: You'll be responsible for prorated property taxes due up to the date of the sale. - Mortgage payoff: The remainder of that loan will need to be paid off before the sale is finalized. - HOA fees: HOA fees will also need to be paid up-to-date as of closing day. - Seller concessions: It’s a common practice for a seller to offer to pay some of the buyer’s closing costs. Closing costs are so named because they are literally due when you close on the sale of your home. This is after you and the buyer meet with the closing agent, title company, and/or attorneys to disburse the funds and sign all necessary documents.