You bought your house for $250,000.
You think you could sell it for $400,000.
So naturally, your brain starts doing math.
"OMG. I'm making $150,000!"
Okay, girl. 😂
Before we start spending that money, we need to talk about something.
Selling a house costs money.
And if you're thinking about selling in Western or Central Massachusetts, I want you to understand the numbers BEFORE we put your home on the market.
What Are the Typical Costs of Selling a House in Massachusetts?
The main expenses may include real estate brokerage compensation, Massachusetts deed excise tax, attorney and closing-related fees, mortgage payoff, property tax adjustments, and any negotiated seller concessions.
You may also have expenses for preparing the property, moving, or addressing repairs.
Not every seller has every expense.
That's why we calculate your estimated net proceeds individually.
1. Real Estate Brokerage Compensation
Brokerage compensation is negotiable.
There is no universally required commission percentage.
The amount and structure depend on the services and agreements involved.
When we meet, I want you to understand exactly what services you're receiving, how compensation works, and how it affects your estimated proceeds.
2. Massachusetts Deed Excise Tax
This is one sellers sometimes forget.
Massachusetts generally imposes a deed excise tax when real estate is transferred for consideration. The rate in most Massachusetts counties is commonly $4.56 per $1,000 of consideration, with certain exceptions and regional differences.
For a hypothetical $400,000 sale, that would be approximately $1,824 at that rate.
Your closing attorney can confirm the applicable tax and any exemptions for your transaction.
3. Attorney and Closing Expenses
Massachusetts real estate transactions commonly involve attorneys.
Your attorney can help with legal documentation, title-related issues, payoff coordination, and the closing process.
There may also be recording-related charges, municipal documentation costs, and other transaction-specific expenses.
The Massachusetts Secretary of the Commonwealth publishes official Registry of Deeds recording fees.
Massachusetts Secretary
4. Your Mortgage Payoff
This is a BIG one.
Your mortgage balance is not necessarily the exact amount required to pay off the loan at closing.
Your lender provides an official payoff statement that accounts for applicable interest and other amounts.
We use that number when calculating your estimated proceeds.
5. Repairs and Preparation
Some houses need very little.
Others benefit from painting, cleaning, landscaping, minor repairs, or staging.
And sometimes the most valuable advice I give a seller is:
"Please don't spend money on that."
I want to see your house before you begin renovating for resale.
6. Seller Concessions
Depending on the offer and negotiations, a seller might agree to contribute toward certain buyer expenses or address an inspection-related issue.
Those concessions affect your bottom line.
We evaluate the entire offer, not just the purchase price.
What Would You Actually Walk Away With?
Let's use a completely hypothetical example.
Illustrative Seller Net Proceeds Calculator
Change the numbers to see how selling expenses and mortgage payoff affect proceeds. This is not a closing quote.
Enter expenses such as attorney fees and seller credits here. The illustrative deed excise is calculated separately, so do not include it again.
Includes an illustrative deed excise calculated at $4.56 per $1,000 of sale price. This simplified estimate does not account for statutory rounding or location-specific rates and charges. Excludes taxes on gains, prorations, additional liens, and unentered expenses. Compensation is illustrative and negotiable. Blank fields count as $0. Actual proceeds will vary.
Want a personalized estimate? Let’s talk.This is why I don't want you making plans based on a Zillow estimate and your current mortgage balance.
We need a realistic net sheet.
Frequently Asked Questions
Does the seller pay closing costs in Massachusetts?
Yes, sellers generally have transaction expenses, including applicable deed excise tax, legal fees, and other negotiated or required charges.
Are real estate commissions fixed in Massachusetts?
No. Brokerage compensation is negotiable and depends on the agreement and services provided.
Do I pay taxes on the profit from selling my home?
Potentially. Federal and state tax treatment depends on your circumstances, ownership, use of the property, and applicable exclusions. Your accountant or tax professional should review your situation.
Can I find out how much money I'll make before listing?
Yes. A Realtor can prepare an estimated seller net sheet using an anticipated sale price, mortgage payoff, and estimated transaction expenses.
Want to Know What You'd Actually Walk Away With?
Let's skip the guessing.
I'll look at your property, review comparable sales, and help you understand what selling could realistically mean financially.
You don't have to be ready to list.
You just have to be curious.
About Angie Schermerhorn
Angie Schermerhorn is a REALTOR® with the Stephanie Salerno Team at Coldwell Banker Realty, serving Western and Central Massachusetts and northern Connecticut. Her seller consultations focus on pricing, preparation, marketing, and helping homeowners understand their options before making decisions.
