How do you calculate closing costs for the seller?
Seller closing costs = agent commissions (typically 5–6%) + transfer taxes + owner's title policy + prorated property taxes + any concessions. On a $400,000 sale, sellers typically net $370,000–$375,000 after $24,000–$30,000 of costs — before paying off the mortgage.
Seller net sheet: $400,000 sale
| Item | Amount | Note |
|---|---|---|
| Sale price | $400,000 | — |
| Commissions (5.5%) | −$22,000 | Negotiable; split between agents |
| Transfer tax (example 0.5%) | −$2,000 | 0% in TX, 2%+ in some cities |
| Owner's title + escrow | −$1,800 | Where seller customarily pays |
| Prorated taxes + misc | −$1,500 | Up to closing date |
| Net before mortgage payoff | $372,700 | ≈ 93% of price |
How to read this table
- Sale price sits at the top of the table ($400,000) — —. If your situation looks like this row, plan against the upper half of the range rather than the midpoint.
- Prorated taxes + misc anchors the bottom (−$1,500) — up to closing date. Treat this as the conservative case you should still be profitable at.
- The gap between the top and bottom row is roughly 267×. That spread is why a single blended average is close to useless here — pick the row that matches your setup instead of averaging the column.
- With 6 reference points in the "seller net sheet: $400,000 sale" table, the fastest way to use this page is to find the closest row, take its amount, then stress-test it ±30% before you build a plan on it.
Context
Build a net sheet before listing, not after an offer arrives. The two levers with real room: commission (everything is negotiable post-2024; discount brokerages list for 1–2% on the listing side) and concessions (cap them in the counteroffer). Don't forget prorations — if you've prepaid property taxes past the closing date, you get credited back at the table.
What moves this number
Financing terms
Rate, down payment and amortisation drive cash-on-cash return more than purchase price does. The same building can cash-flow or bleed depending on the loan.
True operating expense ratio
Management, insurance, tax, maintenance, vacancy and capital reserve typically consume 35–50% of gross rent. Models that skip reserves overstate returns badly.
Vacancy and turnover
One 45-day vacancy plus a turn can erase a year of thin cash flow. Underwrite 5–8% vacancy even in tight markets.
Local regulation
Rent rules, short-term rental caps and licensing requirements change the achievable revenue of an identical property between neighbouring cities.
Methodology
Example uses mid-range 2025–2026 figures: 5.5% total commission, 0.5% transfer tax, customary seller-paid title. Local norms can shift several of these lines to the buyer.
Assumptions and caveats
- Returns exclude appreciation and principal paydown unless a row states otherwise.
- Local tax, insurance and regulation can move these figures by several points in either direction.
- This page was last reviewed on 2026-10-01. Ranges are updated as new data lands, so re-check before using them in a contract or a plan.
- Use these numbers as a starting range, not a guarantee — your own historical data always beats a benchmark.
Frequently asked questions
How do you calculate closing costs for the seller?
Seller closing costs = agent commissions (typically 5–6%) + transfer taxes + owner's title policy + prorated property taxes + any concessions. On a $400,000 sale, sellers typically net $370,000–$375,000 after $24,000–$30,000 of costs — before paying off the mortgage.
Which option pays the most in the seller net sheet: $400,000 sale table?
Sale price, at $400,000 (—). That row represents the strongest case in this dataset, so use it as an upper bound rather than an expectation.
What is a realistic low-end figure?
Prorated taxes + misc at −$1,500 (Up to closing date). Plan your costs so the low end still works, then treat anything above it as upside.
Why do the numbers vary so much?
The spread between the highest and lowest row is about 267×. Financing terms and true operating expense ratio explain most of that gap — see the drivers section above for the full list.
Where do these numbers come from?
Example uses mid-range 2025–2026 figures: 5.5% total commission, 0.5% transfer tax, customary seller-paid title. Local norms can shift several of these lines to the buyer.
How can I estimate my own number instead of using a benchmark?
Use the Closing Costs Calculator on RevenueLab — it takes your own inputs and returns a figure specific to your setup, which is always more accurate than a published range.
Model your own numbers
Related reading
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Last updated 2026-10-01.