When You Sell a House, Who Pays for What? – National Cash Offer

When You Sell a House, Who Pays for What?

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Selling a home can be quite a complicated process. One aspect that many homeowners are unprepared for when they sell their home is the various expenses that they might be responsible for. From closing costs to agent commissions, it’s important that you understand all of the costs that you will likely be responsible for when you sell a house.


Closing Costs

Closing costs, or settlement costs, are fees which pay for services such as title insurance and escrow holders. The amount that you owe here depends entirely on the terms of your contract. However, typically, buyers and sellers tend to share these costs. As an example, in most cases, buyers and sellers will choose to pay for their own title insurance while evenly splitting the fees for the escrow holder. Additionally, as the seller, you will be responsible for transfer taxes depending on your state.


Agent Commissions

One thing that you probably wouldn’t expect is that sellers generally pay a commission to both the buyer’s agent and the listing agent. When you sell your home, both agents will split a percentage of the final sale price which you will typically be responsible for.



Whether or not you are responsible for repairs depends on whether or not you are able to sell your home without making necessary repairs. In many cases, you might find that making certain repairs before putting your home on the market will drastically increase its market value and help you turn a larger profit. In this case, you should absolutely cover the costs of your own repairs.


However, in some cases, the repairs might be insignificant and not have a significant impact on your home’s sale price. In this case, if you are able to find a buyer willing to buy your home with its flaws, you can leave it up to them to make the repairs. Lastly, if there are serious issues which present threats to a home’s structural integrity, you should consider paying for these repairs yourself, even though many states do not require the seller to cover these costs.



One common cost of selling a home is the mortgage left on your home. As many homeowners decide to sell their home before the mortgage is completely paid off, much of the sale price will go to paying off whatever is left. Additionally, you will be required to pay off second mortgages, home equity lines, and any other liens when you sell a house. Selling a home can be a difficult, complicated process. Hopefully, this post helped clear up what costs you will likely be responsible for when you sell your home.

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