Who Pays Closing Costs When Selling a House By Owner?
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Taryn Tacher Senior EditorClose
Taryn Tacher Senior EditorTaryn Tacher is the senior editorial operations manager and senior editor for HomeLight's Resource Centers. With eight years of editorial and operations experience, she previously managed editorial operations at Contently and content partnerships at Conde Nast. Taryn holds a bachelor's from the University of Florida College of Journalism, and she's written for GQ, Teen Vogue, Glamour, Allure, and Variety.
Selling a home without a Realtor can feel empowering, especially when you’re trying to keep more of the profit from the sale. But once you start getting into the details, the numbers behind the transaction can get surprisingly complex. Who pays closing costs when selling a house by owner? It’s a question that often comes up as sellers realize that even without an agent, there are still fees and shared expenses involved at the closing table.
Understanding how these costs are typically divided can help you plan and avoid last-minute surprises when it’s time to sign the final papers.
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Seller FSBO closing costs
How much are closing costs for a seller in a FSBO transaction? Seller closing costs in an FSBO deal usually still add up to about 6% to 10% of the sale price, depending on things like taxes, title fees, and any concessions.
Even without an agent, most of these costs don’t go away. They just get handled differently. The exact amount varies based on your location and what you agree to cover in the deal. Here’s what to expect in what’s included in seller closing costs for FSBO:
Pre-listing appraisal ($350-$700)
It’s not required, but without access to an agent’s comparative market analysis, FSBO sellers may find it useful to order their own pre-listing appraisal to price their home accurately. With this, you can avoid overpricing, which may slow down your sale, or underpricing, which could cost you money.
Seller’s attorney fees ($150-$400 an hour)
Not every state requires you to hire a real estate attorney, but in FSBO sales it’s still a smart move to have some legal help to avoid unnecessary risk. An attorney can review and prepare key documents and make sure important paperwork, like the seller’s disclosures, is filled out correctly, so be sure to prepare for real estate attorney fees.
Transfer taxes (0.1%-5.0% of the sale price)
Many states and municipalities levy taxes for the transfer of property from one party to another. This fee often falls on the seller, but customs can vary by state. Currently, 16 states do not charge any transfer taxes.
Property survey fees ($200-$1,200)
Unless you already have an up-to-date copy, you may need to pay a surveyor to create a land or property survey. This serves as a legal document of the topography and boundaries of your entire property as part of the record of the sale.
Buyer’s agent fee
Do FSBO sellers pay buyer’s agent commission? The short answer: it depends on what you negotiate with the buyer.
Since August 2024, there have been significant changes in how real estate commissions are structured. Previously, sellers typically paid total commissions of around 5% to 6% of the sale price, split between the listing agent and the buyer’s agent.
However, under the new rules, the buyer is now responsible for negotiating and paying their agent’s commission directly. As a result, the commission fee for the buyer’s agent is no longer automatically included in the seller’s closing costs.
Buyers must now negotiate their agent’s fees, which may be based on a flat rate, an hourly fee, or a percentage of the sale price. This shift makes the market more competitive and can lead to lower commissions or more flexible fees, since buyers now have more control over what they agree to.
Despite this change, many sellers still cover the buyer’s agent fees to attract more buyers or help the home sell faster. In fact, according to HomeLight’s Top Agent Insights for Spring/Summer 2026 report, 57% of agents said the most common concession is still the seller covering the buyer’s agent commission. With that, if you choose to cover this cost, you’ll still be paying a form of agent commission when selling FSBO.
FSBO with a known buyer
Some FSBO sales tend to be between buyers and sellers who already know each other. In 2025, about 30% of FSBO sellers chose to sell without an agent because they’re selling to someone they already know, like a relative, friend, or neighbor. In this case, both the buyer and seller typically hire attorneys to handle the paperwork and close the deal, without real estate agents involved.
On the other hand, if you’re selling FSBO and don’t already have a buyer lined up, you might be wondering if offering a buyer’s agent commission, usually around 3% of the sale price, will help bring in more interest.
That decision is totally up to you as the seller, but not offering it could shrink your pool of potential buyers, especially with recent changes that put more responsibility on buyers to cover or negotiate their agent’s fees. Even though some buyers will still consider unrepresented deals, offering a commission can make your listing more appealing and help you attract more serious interest.
Why buyer’s agents want a fee
Buyer’s agents typically expect compensation for the work they do in securing a sale, such as arranging showings, qualifying buyers, and guiding them through the process.
As a seller, you have a few options: You can offer the typical 3% buyer’s agent commission (still saving on the listing agent’s fee), negotiate a lower percentage or flat fee, or choose to offer no buyer’s agent commission at all.
While offering no commission could save you the most, it may result in a longer time on the market and fewer buyers. Keep in mind that buyer’s agents may be less motivated to show homes that don’t offer compensation for their efforts.
“One major advantage of having an agent is finding a buyer,” says James R. Rhyne Jr., owner and real estate attorney at Rhyne Law Firm, who handles one or more FSBO transactions per month. “You can hire an attorney to help you with the contract, but I can’t help you list your property. Most of the FSBOs who come to me already have a buyer.”
Buyer FSBO closing costs
A buyer also has their share of closing costs when purchasing a home listed as FSBO, since most transaction fees tied to financing and title transfer don’t change based on whether an agent is involved. These costs are typically required by lenders, service providers, or local regulations and are part of finalizing the purchase. These include:
Loan origination and processing fees (1%-3% of the loan amount)
Lenders charge fees for preparing and evaluating the buyer’s mortgage. These fees may include expenses for underwriting, document preparation, and administrative work. Buyers should take a close look at their loan estimate to understand all the costs involved and see if there’s room to negotiate better terms with the lender.
Buyer’s attorney fees ($150-$500 an hour)
Buyers who don’t have an agent often bring in their own attorney to help them review and sign contracts. This extra support is especially helpful when buying directly from a seller, where there’s more room for legal details to slip through the cracks. An attorney can help protect the buyer’s interests, making sure the paperwork is solid and nothing unexpected pops up at closing.
Third-party appraisal ($400-$800)
If a buyer is using a mortgage to purchase a home, the lender requires a third-party appraisal to assess the property’s fair market value. This ensures that the loan amount doesn’t exceed the home’s value. The appraiser looks at similar homes nearby and checks the property condition to determine its market value.
General and specialized inspections ($200-$500 for general, additional fees for specialized)
Most buyers choose to hire a professional inspector to look under the hood of a home before they cement their purchase. A general inspection checks for big issues related to the home’s foundation, plumbing, electrical, HVAC, roof, and other main systems, while specialized inspections may check for termites, lead, or radon.
Learn more: Get a clearer picture of what FSBO really costs by using our Seller Closing Cost Calculator before you list. It helps you estimate your total expenses upfront so you can decide if selling on your own is truly worth the savings.
Negotiated or split fees
In FSBO transactions, some fees aren’t set in stone and can be negotiated or split between the buyer and seller depending on what both parties agree to. This often happens as part of the offer process or closing negotiations. A few examples include:
Seller concessions and closing cost credits (varies)
A buyer may ask you to pay for certain concessions, such as cash to offset certain repairs, home warranty coverage, or a portion of their closing costs. Without an agent on your side to reject requests or negotiate on your behalf, these concessions can become fairly steep.
Settlement fees (1%-2% of the sale price)
The title company, escrow company, or attorney that facilitates the closing will also charge what are called settlement or escrow fees for handling the final paperwork and distributing funds to the appropriate parties.
Settlement fees are usually split between the buyer and seller, depending on what the fee is for and what’s typical in the local market. That said, who actually pays can often be negotiated during the deal.
Property taxes (varies)
When selling a home, regardless of whether it’s FSBO or agent-assisted, the seller is responsible for paying any property taxes owed for the time they’ve owned the home up until the closing date. Conversely, the buyer will cover taxes from the closing date onward.
This usually means property taxes are prorated, so they’re split based on a daily rate between the buyer and seller. That way, each side only pays for the time they actually owned the home, keeping things fair for both parties.
Title fees (1% of the sale price)
Several title fees will likely be charged in any real estate sale, including:
Title search ($75-$200)
A title search looks through public records, deeds, and court documents to confirm who legally owns the property and check any existing claims, liens, or encumbrances. During this search, any potential disputes, such as unpaid property taxes, mortgages, or legal judgments against the property, are flagged.
This allows the seller to resolve them before closing, ensuring the buyer receives a clean title, meaning there are no unresolved issues that could get in the way of selling or transferring ownership.
Owner’s title policy (0.5%-1%)
Imagine that after buying your home, a previously unknown heir comes forward with a legitimate claim to the property that wasn’t identified during the title search. Title insurance protects the homeowner from financial loss due to these rare but potentially expensive errors. It’s often a one-time policy, and sellers commonly pay for it to help reassure the buyer and ensure a smooth transfer of ownership.
Is owner’s title insurance mandatory for FSBO sellers? It’s not usually required by law for FSBO sellers, so it’s technically optional. That said, it’s often recommended because it protects you and indirectly helps the sale go smoothly by reducing risk and last-minute issues.
Lender’s title policy (0.5%-1%)
This insurance protects the lender from financial loss caused by title defects or claims that may surface after closing, covering up to the remaining mortgage balance. It’s designed to safeguard the lender’s interest in the property, not the homeowner’s. Because of this, buyers typically pay this one-time fee as part of their closing costs.
Can FSBO sellers avoid closing costs?
Hypothetically, a FSBO seller could ask a buyer to cover all their closing costs on top of the purchase price. But in reality, you’re unlikely to find a buyer who’s willing to agree to those terms. As with any listing, a buyer is usually focused on getting the best deal they can.
“In theory, the seller can make the buyer pay all the closing costs, but why would a buyer agree to that?” Rhyne says. “I doubt most people are going to read a one-sided contract and not notice. Rather, sellers have their own fees, and buyers have their own fees with most contracts.”
Without an agent to negotiate in your favor, the contract could skew more buyer-friendly in the end.
“If I am the buyer’s agent and the seller is selling on their own, I am writing that contract pro-buyer,” shares top Dallas real estate agent Rach Potter. “My responsibility is to my buyer, so if I can get things taken care of for the buyer, I will.”
FSBO closing costs example
To make it easier to understand how expenses can add up, here’s a simple FSBO closing costs example that breaks down what both the seller and buyer might pay.
Bob and Mary sell FSBO
For example’s sake, let’s say fictional Bob and Mary decide to list their Savannah, Georgia, home FSBO. They aren’t sure how to price the home, but after checking a few of their neighbors’ property values online, they choose an asking price of $310,000.
They use iPhone photos rather than professional photography and don’t stage the home. After several weeks of minimal interest and only a few casual inquiries from uncommitted buyers, they add a note stating they are willing to pay a buyer’s agent commission of 2.5%.
A buyer’s agent representing a buyer named Sally finally brings Bob and Mary a bona fide offer of $300,000. However, the agent negotiates a $10,000 price reduction after an inspector finds serious safety issues, bringing the sale price down to $290,000. Additionally, Sally requests a closing cost credit of $3,000, which Bob and Mary agree to.
Here’s how their net proceeds break down:
- Attorney fees: $500
- Buyer’s agent commission (2.5% of the sale price): $7,250
- Outstanding mortgage balance: $50,000
- Title fees: $1,770
- Property taxes owed: $1,000
- Settlement fees: $885
After accounting for these closing costs, Bob and Mary see selling proceeds of about $226,000 and a time on market of eight weeks.
Could Bob and Mary have netted more with a real estate agent’s help? Maybe. The data, in fact, say it’s likely they would have.
According to the National Association of Realtors (NAR), FSBO properties sold for a median of $360,000 in 2025, while homes sold with an agent reached about $425,000, roughly an 18% higher median price for agent-listed sales. Our transaction data at HomeLight further echoes that real estate agents at the top of their market sell homes for as much as 10% more than the average agent.
A good real estate agent can help sellers get a higher price by advising on smart pre-listing upgrades, setting the right price, often without needing a pre-listing appraisal, and handling negotiations all the way through closing to help keep costs down.
A real estate agent also puts some of their commission dollars toward staging and marketing the home so that it sells faster and for more, a service Bob and Mary did not receive by going FSBO.
Bob and Mary hire a top agent
Bob and Mary decide to take a different path and hire a top real estate agent to list their home. After reviewing a comparative market analysis (CMA), their agent suggests they could list for $20,000 more if they complete some light improvements, like enhancing curb appeal, deep cleaning, and decluttering.
The agent also highlights that their home’s value is higher due to being in a desirable school district, popular among millennial buyers. They take professional photos and ensure the listing appears on all major real estate websites and social media, quickly attracting buyer interest.
During post-inspection negotiations, the agent manages to reduce a $10,000 repair request to just $5,000 and rejects a closing cost credit request, emphasizing the generosity of the original terms.
The final offer, after the $5,000 inspection adjustment, comes to $325,000. Here’s how the closing costs break down:
- Real estate agent commission (2.5% of the sale price): $8,125
- Outstanding mortgage balance: $50,000
- Title fees: $1,770
- Property taxes owed: $1,000
- Settlement fees: $885
With these deductions, Bob and Mary walk away with approximately $263,000. Plus, they secure an offer in just two weeks, selling faster than the average market timeline.
Unsure About Selling FSBO? Consult With a Top Agent
If you don’t have the time or expertise to list your home FSBO, partner with a trusted, top agent in your market. We analyze over 27 million transactions and thousands of reviews to find you the best agent for your unique situation.
FSBO cuts costs, but not all
If you’re trying to avoid commission fees, the only way to fully skip the typical 3% to 6% agent costs is for both the buyer and seller to go unrepresented and use attorneys to handle the paperwork. This can save you a lot of money, but it also comes with more responsibility and a few extra risks to manage on your own.
Other key points to remember:
- In a FSBO sale, additional closing fees for attorney hours, transfer taxes, and settlement fees will still be deducted from your proceeds, amounting to about 1% to 4% of the sale price.
- If a buyer uses an agent, sellers may also be asked to pay all or part of the buyer’s agent commission, bringing total seller FSBO closing costs to approximately 4% to 7%.
- Buyers will often pay their own closing costs, averaging 2% to 5% of the final purchase price, with a good portion of those expenses going toward their mortgage-related fees.
- Skipping the listing agent commission can save around 3%. But data shows that selling without an agent can sometimes lead to a lower sale price, which is an important trade-off to keep in mind when deciding whether to go FSBO.
- FSBO puts all the work on the seller to list the home and negotiate the contract. An attorney can fill in some gaps but can’t replicate the services of an agent.
If the prospect of FSBO seems overwhelming, HomeLight would be happy to introduce you to some quality real estate agents in your area for a consultation.
Frequently asked questions (FAQs) about FSBO closing costs
Most closing costs are paid at the closing table when the sale is finalized. Some smaller costs, like inspections or legal help, may come up earlier in the process. Everything is typically settled in one final breakdown before ownership officially transfers.
A Closing Disclosure is a document that lays out all the final details of the sale, including costs, credits, and who pays what. It’s important because it gives both the buyer and seller a clear picture of the final numbers before closing. FSBO sellers should review it carefully to make sure everything matches what was agreed on.
FSBO sellers usually need documents like the purchase agreement, property disclosure forms, and the deed. You may also need things like a title report, payoff statements, and any required local paperwork. An attorney or title company usually helps make sure everything is complete and ready for closing.
You can find a title company for an FSBO closing by searching locally or asking for recommendations from real estate attorneys, lenders, or even past sellers. Many title companies also list their services online and are used to handling FSBO transactions. Once you choose one, they’ll help coordinate the title search, paperwork, and closing process.
Header Image Source: (Sean Locke Photography / Shutterstock)
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