Closing Costs in Massachusetts: A Guide for Sellers

Realty transfer tax

You also might be responsible for what’s known as a realty transfer tax. These are fees assessed by local governments whenever a property changes ownership.

These taxes are sometimes called a “Deed Excise tax” or a “Documentary Stamp tax.” Who ultimately pays these taxes depends on the state, city, or county where the sale occurs.

In Massachusetts, for example, the seller is typically responsible for covering transfer taxes as part of the closing costs. However, the distribution of these fees can be negotiated during the sale process.

Real estate agent commission

Unless you’re selling your home for sale-by-owner, you’ll likely have used a local agent. Research indicates that an agent’s expertise can significantly impact your sale: In 2023, homes sold with an agent’s assistance had a median price of $405,000, compared to $310,000 for FSBO sellers.

Working with a real estate agent means paying a commission. This fee covers various services, such as accurately pricing your home, marketing it effectively, and negotiating with buyers to ensure you receive the best possible price and terms.

It should be noted, however, that on March 15, 2024, the National Association of Realtors (NAR) announced a landmark lawsuit settlement that will change the way real estate agent commissions are handled in the future. These changes will “decouple” seller and buyer agent compensation. Industry experts predict that this decoupling will likely lower agent fees and give buyers the ability to negotiate commission amounts directly. Learn more.

HomeLight’s transaction data reveals that the national average real estate agent commission is 5.8% of the property sales price. This commission typically includes fees for both the listing and buyer’s agents, with sellers customarily covering the cost.

Use HomeLight’s commission calculator by entering your city for commission data tailored to your specific area.

Attorney Fees

Some states require an attorney to be present when closing the sale of a property.

In Massachusetts, state law mandates the presence of an attorney at the real estate closing when buying or selling property. This is often the lender’s closing attorney, but buyers and sellers can also hire their own lawyers.

Homeowners Association/Condo Fees

One of the biggest sticking points for sellers is the fees levied by their homeowners’ association (HOA) or condominium association fees.

Like other fees we’ve discussed, these will vary, not just because of the different rules and regulations of your local HOA but also because HOA regulations vary greatly depending on the state. These fees (or dues) are usually prorated at the time of the sale.

HOA fees in Massachusetts average around $389 per month.

Seller’s concessions

Sellers might owe money at closing due to financing concessions agreed upon during negotiations. These often include cash for closing costs, repairs, and home warranties. A common concession is repair credits, which are used when a buyer has a contingency related to a home inspection. Instead of making repairs themselves, sellers can offer repair credits to the buyer at closing. These are less common in seller’s markets as contingencies can deter potential buyers.

Miscellaneous closing costs/fees

These are some of the most common closing costs you’ll encounter as a seller in Massachusetts. However, many closing costs are negotiable. Your buyer may be willing to negotiate on some of these costs, or a real estate attorney or agent may help you get a better deal.

HomeLight can connect you with a top local agent to minimize closing costs without jeopardizing your sale. You can also consider HomeLight’s Simple Sale program to sell your home quickly and easily in just three steps.

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