When selling real estate, many owners focus on the sale price but overlook the costs that come out of their proceeds at closing. Seller closing costs can vary based on the property type, location, and terms of the contract. Understanding who pays what at closing in West Virginia, Ohio, and Pennsylvania helps you avoid surprises and better estimate your net proceeds before closing day.
This guide breaks down common seller closing costs, explains when buyers may share certain expenses, and shows how a real estate attorney can help protect your financial interests.
What Are Seller Closing Costs?
Seller closing costs are expenses deducted from the sale proceeds when ownership transfers to the buyer. Some costs are standard, while others depend on local practices or negotiated contract terms.
In most transactions, sellers can expect closing costs to range from 6% to 10% of the sale price, with real estate commissions often being the largest portion.
Common Seller Closing Costs
Here are the most common expenses sellers may be responsible for at closing.
Real Estate Agent Commissions
In most residential sales, the seller pays the real estate commission. This fee is typically split between the listing agent and the buyer’s agent.
- Usually 5% to 6% of the sale price
- Negotiated in the listing agreement
- Paid from sale proceeds at closing
Commercial transactions may involve different commission structures depending on the deal.
Title-Related Costs
Title costs vary by state and by contract terms. Depending on local custom, the seller may pay for:
- Owner’s title insurance policy
- Title search or examination fees
- Recording fees related to clearing title
In some transactions, these costs are negotiated or split between buyer and seller.
In West Virginia, it is customary for the buyer to pay for the title insurance.
Mortgage Payoff and Lien Releases
If you still have a mortgage or other liens on the property, they must be paid off at closing. Seller proceeds are used to:
- Pay the remaining mortgage balance
- Satisfy home equity loans or lines of credit
- Release judgment liens or tax liens
Your lender will provide a payoff statement that includes interest through the closing date.
Transfer Taxes and Conveyance Fees
Some states and municipalities charge a tax or fee when property ownership transfers. These are often referred to as transfer taxes or conveyance fees.
- Responsibility varies by state and county
- Sometimes split between buyer and seller
- Often negotiable in the purchase agreement
Your attorney can explain how these apply in your specific location.
Prorated Property Taxes and Utilities
Property taxes are typically prorated between the buyer and seller based on the closing date. Sellers usually credit the buyer for:
- Unpaid property taxes
- Prepaid utilities, if applicable
- Association dues for HOA properties
These prorations appear on the settlement statement.
Seller Concessions or Credits
In some cases, sellers agree to pay a portion of the buyer’s closing costs as part of the negotiation. These concessions may include:
- Credits for repairs
- Contributions toward buyer loan costs
- Price adjustments instead of physical repairs
These amounts reduce the seller’s net proceeds but can help keep a deal on track.
Who Pays What Depends on the Contract
There is no single rule for who pays each closing cost. Responsibility is determined by:
- State and county customs
- The purchase agreement
- Negotiated concessions
- Property type and financing
This is why reviewing the contract and settlement statement carefully is so important.
Reviewing the Settlement Statement Before Closing
Before closing, sellers receive a settlement statement that details every cost and credit. This document shows:
- Sale price
- All seller-paid expenses
- Mortgage payoffs
- Net proceeds to the seller
Reviewing this statement with a real estate attorney helps ensure accuracy and prevents last-minute surprises.
How a Real Estate Attorney Helps Sellers Control Closing Costs
A real estate attorney can help sellers by:
- Reviewing contracts for unfavorable cost allocations
- Negotiating seller concessions strategically
- Verifying payoff and lien amounts
- Explaining taxes, fees, and prorations
- Ensuring accurate final proceeds
Having legal guidance is especially important for commercial sales, estate properties, or transactions involving title complications.
How Guida Law Offices Supports Sellers at Closing
Guida Law Offices has extensive experience representing sellers throughout West Virginia, Ohio, and Pennsylvania. Our team helps sellers understand closing costs, review settlement statements, and complete transactions with confidence.
If you are preparing to sell property and want clarity on seller closing costs, contact Guida Law Offices to discuss your transaction and ensure you know exactly who pays what at closing.