Seller Closing Costs in Boston - 2025 Guide
By Thomas Kutzman on January 02, 2025
Closing costs are fees associated with the settlement of a real estate transaction - also known as the closing.
A closing is when the title of the property is transferred from the seller to the buyer. In Boston, it is customary for the seller to pay big ticket items such as realtor commissions. Many of the remaining closing costs are typically paid for by the buyer. These can include things like loan origination fees, title insurance, and other buyer closing costs.
The good news for homeowners is that a seller pays closing costs out of the net proceeds of the sale, so there are rarely funds shelled out in advance.
Below we highlight some of the key things every seller in Boston should know about closing costs before they list their home for sale.
What are seller closing costs in Boston?
When selling a condo or home in Boston, it's important to be aware of closing costs - the fees associated with the sale of the property. These costs include real estate commission, state transfer taxes, local recording fees, real estate attorney fees, repair costs, outstanding HOA fees, and any applicable staging costs during the sale process.
The two largest closing costs for sellers in Massachusetts are the real estate commissions paid to the listing agent and buyer’s agent, as well as the real estate transfer tax levied by the Department of Revenue in Massachusetts at a rate of $4.56 per thousand (0.456%) in most counties. The transfer tax is sometimes referred to as an excise tax or deed stamp.
Example of Seller Closing Costs in Boston
- Sale Price: $1,000,000
- Real Estate Commission (5%): $50,000
- Transfer Tax (0.456%): $4,560
- Attorney Fee: $2,000
- Total Closing Costs: $56,560 or 5.66% of Sale Price
Average seller closing costs in Boston
Seller closing costs in the Greater Boston Area can vary from county to county. That said, homeowners can expect to pay an average of 4.5% to 7% of their sale price in closing fees when selling their home.
Can sellers negotiate commission rates in Boston?
Commission is a fee that a real estate agent charges for their services. In Boston, commission rates are typically negotiable, and sellers can expect to pay anywhere from 4% to 6% on average of the final sale price.
The commission rate will depend on a number of factors, including the complexity of the transaction, the market conditions, and the agent's level of experience. Ultimately, it is up to the seller to decide how much they are willing to pay in commission.
Given that commission is one of the largest closing costs a seller pays in Boston, it is important that sellers interview multiple agents to compare their services and commission rates. This is especially true in a seller’s market where it is very easy for an agent to sell your home quickly.
How can sellers reduce other closing costs in Boston?
In addition to negotiating a lower commission rate with your realtor, there is one additional way a homeowner can reduce their closing costs. That is to request the buyer to pay a portion of the seller's closing costs.
This practice is not a frequent occurrence. However, in some cases during bidding wars, buyers will offer to pay a portion of a seller’s closing costs as a way to make their offer more attractive versus the competition.
Recurring homeowner costs settled before closings
Separate from the one-time, transaction-related closing fees, sellers should understand that several items need to be in good standing before being settled at closing.
If a seller is parting ways with a condo unit or a house that is part of a homeowner’s association, all outstanding common charges or HOA fees need to be paid prior to closing.
If there is a balance on your mortgage, the mortgage payoff will be organized out of the net proceeds of your sale at closing.
A homeowner’s property taxes also need to be in good standing. If you recently paid your property taxes, the real estate attorneys will prorate any advance payments on the closing disclosure with the buyer. If there are overdue tax bills, these accounts will need to be brought up to date before being allowed to close.
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