A line-by-line breakdown of what sellers pay at closing, from the agent commission to title insurance to transfer taxes, and where the biggest costs actually come from.
Most sellers walk into closing expecting to net the sale price minus their mortgage payoff. Then they sit down with the closing disclosure and find another 8 to 10 line items quietly subtracting from their proceeds.
None of these are scams. They're standard. But you should know what's there before you sign, and you should know which lines are negotiable versus which are fixed.
Here's what sellers typically pay at closing on a $500,000 home, what each cost is for, and where the biggest leaks are.
In a traditional transaction, the seller pays two real-estate commissions at closing — the listing agent's (typically 3%) and the buyer's agent's (typically 3%). On a $500,000 home, that's $30,000 total, deducted from the seller's proceeds.
This is not a fixed law. After the 2024 NAR settlement, commissions are explicitly negotiable, and there are alternatives. VroomBrick replaces the 3% buyer's agent commission with a 1% technology fee — on the same $500,000 home, that's $5,000 instead of $15,000, saving the seller $10,000.
For most sellers this is the single largest line-item swing in the entire closing.
Pre-2024, the seller usually paid both commissions out of the sale proceeds, a combined 5%–6% of the sale price.
After the NAR settlement, the buyer's agent commission is now negotiated directly between the buyer and their chosen agent. As a seller, you may decide to offer a buyer's agent commission as part of your listing strategy (some sellers still do, to make their listing more competitive), but it's no longer automatic. It's a separate decision and a separate line on your settlement statement.
Bottom line: the seller-side cost is the 3% agent commission (or alternative). The buyer-side cost is whatever you negotiate to offer, if anything.
Beyond the agent commission, sellers typically see:
In most U.S. states, the seller pays for the buyer's owner's title insurance policy. This is a one-time cost that protects the new owner against title defects that surface after closing. Cost: roughly 0.5% of the sale price on average, about $2,500 on a $500,000 home, though rates vary by state and provider.
State and local governments charge a tax on the transfer of real property. Rates vary widely:
On a $500,000 home, this typically lands somewhere between $500 and $5,000 depending on jurisdiction. Your closing attorney will calculate the exact amount based on your state and county.
A licensed closing attorney handles the contract review, title search, and settlement. In a traditional transaction this is a separate bill of $800 to $1,500 that the seller pays at closing, regardless of sale price.
With VroomBrick this is included in the 1% technology fee, not billed separately. Your closing attorney is coordinated through the platform and their fees come out of the 1%, not your proceeds.
If property taxes are paid in arrears in your jurisdiction, you owe a prorated share for the days you owned the home in the current tax period. The amount depends on your local tax rate and where in the tax cycle the closing falls.
If the home is in an HOA, you'll typically owe a transfer fee (commonly $200–$500) and possibly a capital contribution to the association's reserve fund. These vary widely by community.
Your remaining mortgage balance is paid off at closing. There's usually a small payoff statement fee ($25–$75) and a recording fee ($50–$150) to record the satisfaction of the mortgage.
If you negotiated to give the buyer credits for repairs, closing costs, or anything else, those come out of your proceeds at closing. Concessions typically run 0% to 3% of sale price depending on market conditions and what came up in inspection.
Adding it up for a typical $500,000 sale (numbers approximate, will vary by state):
| Cost | Traditional (3% agent) | VroomBrick (1% tech fee) |
|---|---|---|
| Buyer’s agent commission / tech fee | $15,000 | $5,000 |
| Title insurance (owner’s) | $2,500 | $2,500 |
| Transfer taxes | $1,500–$3,000 | $1,500–$3,000 |
| Closing attorney | $800–$1,500 (separate bill) | Included |
| Prorated taxes & HOA | Varies | Varies |
| Recording / payoff | $100–$200 | $100–$200 |
| Total seller-side cost | ~$20,300+ | ~$9,000+ |
You keep ~$11,000+ more with VroomBrick
That’s the 2% reduction from replacing the buyer’s agent commission with the 1% tech fee, plus the closing attorney being bundled instead of billed separately. Every other cost on the table (title, transfer, recording, prorations) is set by the state, insurer, or tax authority, not by your agent, so those numbers are the same either way.
The biggest swing is the agent commission, and the second biggest is the closing attorney being bundled into VroomBrick’s 1% fee instead of billed as a separate $800–$1,500 line on traditional closings. Everything else is largely fixed by the state, the title insurer, and third-party standard rates, costs you'll pay either way.
Most closing costs are non-negotiable third-party fees. The state sets the transfer tax. The title insurer sets the rate. The recording office charges what it charges. Trying to negotiate these is rarely worth your time.
Where you have actual leverage:
Everything else is what it is.
The savings calculator shows the savings on any home value when VroomBrick replaces the 3% buyer's agent commission with a 1% technology fee. The other closing costs are largely the same in both scenarios — what changes is the buyer's-side commission line.
If you want to model your full take-home, the net sheet calculator breaks down all the standard line items and shows your projected proceeds after every cost.
The closing disclosure shouldn't be the first time you see what you actually take home. Run your sale price through the net sheet calculator and the savings calculator before you list.
Keep Your $10,000. We'll Handle the Rest.
About VroomBrick: VroomBrick is a real estate technology platform, not a licensed real estate brokerage. VroomBrick does not provide brokerage services, represent buyers or sellers, or hold real estate licenses. The 1% technology fee covers platform access; closing attorneys, showing agents, and lender partners are independent licensed professionals. Commissions are not set by law and are fully negotiable. Savings examples are illustrative; actual savings vary by transaction.
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