Understanding Seller Closing Costs Upfront
Hello, this is Mike Fish, broker and owner of Minnesota Real Estate & Management. Today we’re going to briefly talk about seller closing costs—a very common question and, thankfully, a fairly simple one to answer.
Start With a Net Sheet
If you’re selling a property, the very first thing you should ask for is a seller net sheet.
I strongly encourage sellers to request one up front. We like to have the closing company prepare several versions:
If we sell at list price, here’s your estimated net.
If we sell slightly below list, here’s your estimated net.
If we sell higher, here’s your net.
This gives sellers a clear understanding of where they stand financially and helps them feel more comfortable throughout the entire process. With so many moving parts, clarity is key.
Real Estate Commissions – The Largest Cost
Of course, the number one cost when selling a property is real estate commissions.
Because of state and federal antitrust laws, we cannot publicly discuss or advertise commission amounts—that must remain a private conversation. What I can say is this:
With changing technologies and different brokerage models, commission structures can vary significantly. As a boutique brokerage with low overhead, we have flexibilities and advantages that many larger brokerages simply don’t have.
If you’d like to talk about that privately, I’m always happy to do so.
State Deed Tax
The next major cost is the Minnesota State Deed Tax, which is currently 0.33% of the sales price.
For example:
$300,000 sale → approximately $1,000
$1,000,000 sale → approximately $3,500
It’s a predictable cost but one every seller should be aware of.
Other Seller Closing Costs
Most other closing costs for sellers are minimal—typically around $1,000 or less in total.
Common items include:
Closing company fees
Document preparation fees
Recording fees
These are usually minor compared to commissions and the deed tax.
Septic & Well Testing
For rural and lakeshore properties, almost every seller will be responsible for:
Septic system compliance inspection
Well water test
We strongly encourage sellers to complete these before hitting the market. When you post them on the MLS upfront:
Buyers feel more confident
It removes a potential negotiation hurdle
The transaction tends to move more smoothly
One less thing for everyone to worry about.
Other Variables: Taxes, Payoffs & Individual Factors
There are always individual differences:
Property tax prorations
Mortgage payoff amounts
HOA dues
Special assessments
Any negotiated concessions
This is why communication with the closing company is so important—and why having a good, clear net sheet helps avoid surprises.
Final Thoughts
This is Mike Fish with Minnesota Real Estate & Management. Depending on where you’re seeing this, please like, subscribe, or stay connected. We’re building this content because we truly want it to be helpful—to our industry, to local sellers, and to anyone navigating the real estate process.
If you have questions or want to discuss your own situation, don’t hesitate to reach out.
We hope to earn your trust and your business.
Thank you for your time.
