What Does It Cost to Sell a House in Maryland? A Seller’s Closing Cost Breakdown

The number that matters most when selling your house is not always the sale price.

It is how much money you actually walk away with.

If you sell your Maryland home for $350,000, you probably will not receive a $350,000 check at closing. Your mortgage payoff and selling expenses are deducted before you receive the remaining proceeds.

That is why it helps to understand the costs before deciding how to sell.

Here is a breakdown of the expenses Maryland homeowners may encounter.

1. Real Estate Agent Compensation

If you sell through a real estate agent, compensation is one cost to consider.

There is not one required commission rate that every Maryland seller pays. Real estate broker compensation is negotiable and should be clearly explained in your agreement with the brokerage.

Depending on the transaction, a seller may agree to compensate their listing brokerage and may also agree to contribute toward compensation connected with the buyer's agent.

The important thing is to ask what you will be responsible for before signing a listing agreement or accepting an offer.

For example, ask:

• What compensation am I agreeing to pay?

• Are there additional brokerage or administrative fees?

• Am I offering any compensation or concessions for the buyer?

• When are these amounts paid?

• What will my estimated net proceeds be after these expenses?

Do not focus only on what the house may sell for. Look at what you are likely to keep.

2. Maryland State Transfer Tax

Maryland charges a state transfer tax when real property is transferred.

The general state transfer tax rate is 0.5% of the consideration paid for the property.

There is a special rule when improved residential property is sold to a qualifying first-time Maryland homebuyer who will use it as a principal residence. In that situation, the state transfer tax rate is reduced to 0.25%, and the seller pays that state transfer tax.

Your settlement company or attorney can calculate the amount that applies to your specific transaction.

3. Local Transfer Taxes

This is where the location of your Maryland home starts to matter.

In addition to the state transfer tax, Baltimore City and many Maryland counties impose their own local transfer taxes.

Those rates are not the same throughout Maryland.

That means selling a $300,000 house in one county can involve different transfer taxes than selling a $300,000 house somewhere else.

For example, Baltimore City and Baltimore County have local transfer taxes, while some Maryland counties do not impose a local transfer tax.

Before estimating your proceeds, make sure you are using the rules for the county or city where the property is located.

4. Recordation Tax

Recordation tax is another Maryland-specific expense that can appear during a real estate transaction.

Unlike the statewide transfer tax, recordation tax rates vary by jurisdiction.

Maryland applies these rates based on each $500, or fraction of $500, of the amount subject to the tax.

As with transfer taxes, do not assume the amount will be the same everywhere in Maryland.

The location of the property matters.

Who Pays Transfer and Recordation Taxes in Maryland?

This is a common source of confusion.

Maryland law generally presumes that the buyer and seller intend to share recordation tax and state and local transfer taxes equally unless the purchase agreement or another applicable law provides otherwise.

But that does not mean every Maryland home sale will be split exactly 50/50.

The contract matters.

There are also special rules for certain transactions, including qualifying first-time Maryland homebuyers.

That is why you should review the estimated settlement statement for your specific sale instead of relying on a general online calculator.

5. Your Mortgage Payoff

Technically, paying off your mortgage is not a fee for selling your house.

But it can be the largest amount deducted from your proceeds, so homeowners need to include it when figuring out how much money they will receive.

Suppose you sell for $350,000 but still owe $180,000 on your mortgage.

That $180,000 does not come to you at closing. The mortgage generally needs to be paid off as part of transferring the property.

You may also have other liens or debts secured by the property that need to be addressed.

So when asking, “How much will I get if I sell my house?” start with:

Sale Price – Mortgage Payoff – Selling Expenses = Estimated Net Proceeds

That number is much more useful than the sale price alone.

6. Property Tax Adjustments

Property taxes may also be adjusted at settlement.

Depending on when you sell and what has already been paid, the settlement statement may include a credit or charge so that the buyer and seller are responsible for the appropriate portions of the tax period.

This is another reason your final amount can look different from the initial sale price.

Your settlement company should show these adjustments on the closing statement.

7. Repairs Before Listing

Some of the biggest costs of selling a house can happen before you ever reach closing.

If you are preparing a house for the traditional market, you might decide to repair or update:

• The roof

• HVAC system

• Plumbing

• Electrical problems

• Flooring

• Paint

• Kitchen

• Bathrooms

• Windows

• Water damage

• Foundation issues

Not every house needs major renovations before it can be sold.

But if the property needs work, get realistic estimates before deciding which projects are worth completing.

A $15,000 renovation does not automatically add $15,000 to what you will keep after the sale.

8. Cleaning, Staging, and Preparing the Home

Preparing a house for buyers can come with smaller expenses that add up.

You may spend money on:

• Professional cleaning

• Landscaping

• Junk removal

• Storage

• Moving furniture

• Painting

• Minor repairs

• Staging

• Photography or other services not included in your agreement

Some sellers spend very little preparing their homes.

Others have to put significant time and money into getting the property ready.

Include these costs when comparing your selling options.

9. Inspection-Related Repairs and Buyer Concessions

Getting an offer does not necessarily mean the negotiations are finished.

After an inspection, a buyer may ask you to make repairs, reduce the price, or provide a credit.

A buyer may also request other seller concessions as part of the offer.

You do not automatically have to agree to every request, but those negotiations can affect your final proceeds.

This is one reason it helps to leave some room in your budget instead of assuming the first accepted price is what you will receive.

10. Carrying Costs While You Wait for the House to Sell

These expenses are easy to overlook.

Every extra month you own the house may mean another month of:

• Mortgage payments

• Utilities

• Insurance

• Property taxes

• Lawn care

• HOA or condo fees

• General maintenance

If you have already moved somewhere else, you may be paying expenses for two homes at the same time.

A sale that takes several additional months may therefore cost more than what appears on the closing statement.

When comparing selling options, consider time as a cost too.

What Does It Cost to Sell Directly to Dominion?

Selling directly to Dominion Properties works differently from listing a home traditionally.

When we buy your Maryland home:

• No repairs are required

• No cleaning is required

• There are no agent commissions

• There are no fees

• You can leave unwanted belongings behind

• There are no open houses or repeated showings

• One of our homebuyers completes one walkthrough

• We give you a fair, no-obligation cash offer

You are never required to accept the offer.

We want you to understand the offer and decide whether it makes sense for your situation.

Is a Cash Offer Better Than Listing Your House?

Not always.

A traditional listing may be the right choice if your house is in good condition, you have plenty of time, and your goal is to put the property in front of the largest possible pool of buyers.

A direct sale may make more sense if you want to avoid repairs, do not want to deal with repeated showings, or value a simpler and more predictable process.

The best way to compare them is by looking at net proceeds, not just sale price.

Ask yourself: After I pay everything required to sell, how much money will I actually keep?

Then consider how much time and work each option requires.