Understanding Closing Costs When Selling in Greater Boston

Selling a home in Greater Boston is one of the most significant financial transactions most people will make. And while most sellers focus on the sale price, the number that actually matters is your net proceeds: what you walk away with after closing.

Closing costs can surprise sellers who have not planned for them. In Massachusetts, those costs typically run between 2% and 5% of the sale price, depending on the specifics of your transaction. On a $700,000 home, that is $14,000 to $35,000 coming off the top before you factor in any mortgage payoff.

Here is a clear breakdown of what sellers in Greater Boston typically pay at closing.

Real Estate Commissions

The largest closing cost for most sellers is the real estate commission, which is negotiated at the time of listing. This compensates both the listing agent and the buyer's agent for their work throughout the transaction. The commission is paid by the seller from the proceeds at closing.

Massachusetts Deed Excise Tax

Massachusetts charges a deed excise tax on the sale of real property. The rate is $4.56 per $1,000 of the sale price. On a $750,000 home, that comes to $3,420. This is a state-mandated cost and is not negotiable.

Attorney Fees

Massachusetts is an attorney state, meaning a licensed real estate attorney must be present at closing. As the seller, you will typically hire your own attorney to prepare and review the deed, resolve any title issues, and represent your interests at the closing table. Attorney fees generally range from $750 to $1,500 depending on the complexity of the transaction.

Outstanding Loans and Payoffs

If you have a mortgage, home equity loan, or line of credit, those balances must be paid off at closing from your proceeds. Your attorney will request payoff statements from each lender in advance so the numbers are accurate on closing day.

Similarly, any unpaid property taxes, water and sewer bills, or HOA dues will be reconciled at closing. Massachusetts prorates property taxes, so you may owe a portion depending on where you are in the tax calendar.

Seller Concessions

In some transactions, sellers agree to cover a portion of the buyer's closing costs as part of the negotiation. This is more common in slower markets or when a buyer needs help with cash-to-close. In Greater Boston's competitive market, this is less common, but not unheard of for higher-priced or longer-listed properties.

How to Plan for Your Net Proceeds

The best way to avoid closing-day surprises is to run a net sheet before you list. A net sheet starts with your expected sale price, subtracts all closing costs and your mortgage payoff, and gives you a realistic picture of what you will walk away with.

At the Mike Hughes Team, we provide every seller with a detailed net sheet as part of our pre-listing process. You should know exactly what to expect before you sign a listing agreement, not after you are already under contract.

Pricing strategy and closing cost planning work together. Getting both right from the start is what leads to a clean, profitable sale in Greater Boston.

If you are thinking about selling and want a clear picture of your numbers, call us at 617-433-9225 or visit mikehughesteam.com. We will walk you through it.