Cost to Sell a House in Maryland: Seller Closing Costs Revealed

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  Written by Greg Isaacson

Cost to sell in Maryland | Realtor commission | How to save | Closing cost calculator | FAQs

The average cost to sell a house in Maryland is 5.96% of a home’s final sale price, which includes realtor commission (5.11% of the sale price) and seller closing costs (0.8%). 

That means it costs Maryland home sellers an average of $21,202 to sell a home priced at $377,661 (Maryland’s average home price).

However, Maryland realtor commission and seller closing cost figures vary widely by market.

You can also save thousands on your home sale by using an agent matching service like Clever Real Estate. Clever has negotiated a reduced listing commission of 1.5% – far lower than the average Maryland rate of 2.60%.

Here’s a complete breakdown of the costs of selling a house in Maryland, including tips on how to save on your sale, and a Maryland home sale calculator to estimate your costs.

Cost of selling a house in Maryland 

*Costs assume a sale price of $377,661. Numbers are rounded off and may not be 100% precise.

It’s relatively expensive to sell a house in Maryland. The table above shows that it costs 5.96% when factoring in realtor commissions and closing costs.

That’s higher than the national average of 6.53%. But given Maryland’s relatively low home values, it’s cheaper to sell on a total cost basis compared to the national average.

Overall home prices in Maryland are higher than in neighboring states, but the cost to sell as a percentage of the home price is relatively low.

As a result, Maryland’s average cost to sell in dollars at $22,598 is higher than in Pennsylvania, Virginia, and West Virginia, but lower than in Delaware.

Maryland home values vary quite a bit across the state, so your total home sale costs will also vary. Average sale prices as of June 2022 ranged from $176,727 in Allegany County to $784,791 in Talbot County, according to Maryland Realtors. Talk with a listing agent now for a free CMA to learn what your home might sell for in today’s market.

Here’s an example of your potential costs at various price points, including realtor fees and seller closing costs.

Here are the main factors impacting your Maryland home sale costs. 

Typical real estate agent commission in your area

While the state-wide average rate is 5.11%, rates may be higher or lower depending on what’s normal in your area. 

Your success (or failure) in negotiating rates

Realtor fees aren’t fixed — they are completely negotiable. You may be able to negotiate a rate lower than what’s typical in your area. 

How you find a realtor

You can potentially save thousands in realtor fees by using an agent-matching service like Clever Real Estate to find a realtor. Clever has pre-negotiated a 1.5% listing agent fee with agents in its network, much lower than the typical listing agent commission rate of 2.60%.

Optional costs

The estimated total cost to sell of 5.96% in Maryland does not include other potential costs like home staging, deep cleaning, and pre-listing repairs, which could add thousands more to your home sale costs. 

Your negotiated contract

Maryland closing costs are split between the buyer and seller in most transactions. Sellers typically pay all commissions, realty transfer fees, recording fees, and prorated property taxes.

Home sellers may also be on the hook for attorney fees, home preparation costs, homeowners association (HOA) fees, a mortgage payoff, and any concessions to the buyer.

Buyers take on most of the other expenses including inspection costs, appraisal, and due diligence costs, owner’s title insurance, and buyer closing costs for their mortgage.

Here’s a deeper look at your expected home sale costs.

1. Maryland realtor commission (5.11%)

Maryland home sellers pay an average of 5.11% of the home’s sale price on realtor commissions, which is deducted from the seller’s net proceeds at closing. That fee covers both the listing agent and the buyer’s agent commission.

Your actual cost depends on your home’s value. You can learn what your home is worth and multiply its estimated value by a commission rate to determine your estimated realtor fees.

Here’s what you might expect to pay in realtor fees at various price points. 

*Median sale prices as of June 2022 according to Maryland Realtors. Commission costs assume an average realtor commission of 5.11%. 

Since commission is the single largest home-selling expense in Maryland, it’s also your best cost-saving opportunity. 

How to save on Maryland realtor fees

Here are some tips on how to save money on your home sale. 

Use a discount broker

A discount real estate broker is a company that offers sellers a reduced commission fee with no strings attached. The broker’s listing agents charge less than the average rate, such as a 1% listing fee vs. the typical 2.5%-3% rate. 

Selling at a higher price point leads to even bigger commission savings using a discount broker vs. finding a realtor through traditional sources, like through a family member or friend. 

For example, Clever offers listing fees of just 1.5%, compared to the average Maryland listing commission rate of 2.60% 2.63%. That could save you thousands on a $400,000 home sale.

Agents that partner with these firms also provide all of the services you’d expect to receive from a traditional realtor. The service is free to try with no obligation, so it’s worth starting out here. 

» MORE: The Best Discount Brokers for Every Budget

List your home without a realtor

You can avoid paying Maryland listing commission entirely by selling without a realtor. Expect to save 2.60% off of your home sale. 

However, the typical FSBO home sells for about $58,000 less than agent-listed homes, according to the National Association of Realtors, so you might lose money on the sale. You’ll also be on the hook for all of the tasks normally handled by a real estate professional.

Negotiate a lower rate

There’s no law setting a fixed realtor fee in Maryland or any part of the country, so you can try to negotiate a lower commission rate with Maryland realtors. 

Negotiating commission is more likely to work on a high-value property, since the agent will still earn a substantial commission on the home sale, despite the lower rate.

You also have more wiggle room to reduce the commission rate if you plan to buy a new home with the same agent that’s helping you sell.

» LEARN: How to choose the right listing agent 

2. Closing costs for sellers in Maryland (0.8%)

Seller closing costs typically add another cost of 0.8% or more to the home’s final sale price, according to our data. (Closing costs do not include realtor commission.)

Based on the average Maryland home value of $377,661, the typical home sellers pays $3,299 in closing costs.

Maryland seller closing costs typically include title company fees, transfer taxes, recording fees, and prorated property taxes.

Other seller fees could include attorney fees, Homeowners Association (HOA) fees, and mortgage payoff and/or prepayment penalties.

Buyers generally handle the survey fee, appraisal fee, title insurance costs, and their own attorneys’ fees.

Title company fees

Maryland home sellers generally use a title company to handle the closing rather than a real estate attorney. Title fees generally run between $1,000 and $1,200 in Maryland, according to local realtors.

A title search must be conducted before the property is transferred from the seller to the buyer. In a title search, an attorney, abstractor, or title examiner researches land records and documents the property’s chain of ownership.

Transfer taxes

The Maryland government charges a state transfer tax on every home sale, at a rate of 0.5% of the purchase price. Sellers also face a county transfer tax and recordation tax, with the rates varying by county.

Calvert, Carroll, and Frederick Counties do not charge a county transfer tax. In other counties, the transfer tax rate ranges from 0.5% to 1.5%. The recordation tax rate ranges from $5.00 to $14.00 per $1,000 of the purchase price, depending on the county.

Smart Settlements provides a breakdown of the county tax rates. The company notes that it’s customary for the seller and buyer to split the total amount of the transfer and recordation tax equally unless any exemptions apply.

As an example, if you’re selling a $400,000 home in Baltimore County, you’re on the hook for a $2,000 state transfer tax, a $6,000 county transfer tax, and a $2,000 recordation tax, or $10,000 in total. This amount may be split evenly with the buyer.

Recording fees

Maryland sellers face average recording fees of $100, compared to the national average of $0.

Recording fees are imposed by counties and the standard fee is $60 in each county. In addition, a $40 to $60 municipal lien release is required in some counties or cities, according to Arden Law Firm.

Prorated property taxes

Maryland home sellers are required to pay property taxes on the days they’ve owned their home in the calendar year. Taxes are prorated and split between the seller and buyer. 

The tax is due at closing. Actual costs depend on your annual taxes, and how many days you live in your home up until the closing date. 

Speak with your agent or attorney for more details on what you might owe in prorated taxes. 

3. Other potential costs

Attorney fees

Maryland law does not require home sellers to hire an attorney to handle the closing, and sellers tend to rely on title companies instead. But it may be a good idea to have a lawyer on your side if you have any questions about the transaction or your responsibilities as a seller.

Real estate attorneys review all of your contracts and legal documents and protect you from potential issues that may arise during your sale. A good attorney can help you navigate a complex transaction and provide some peace of mind.

Legal fees are set by each law firm in Maryland. Crownsville-based Arden Law Firm, for example, charges $500 for real estate contract preparation. Real estate attorneys charge an average of $323 per hour in Maryland, according to legal technology firm Clio.

» LEARN: Do I Need a Lawyer to Sell My House?

Home preparation costs 

Preparing your home for sale could add thousands more to your total upfront costs.

Home staging costs between $745 to $2,659 on average in the U.S., according to HomeAdvisor. Actual costs vary widely depending on location, the size of the home, and the number of rooms being furnished.

Expect to spend at least $300 for deep cleaning, if required. Finally, pre-listing home repairs and improvements could add hundreds, if not thousands more to your budget, depending on your home’s condition.

Homeowners association dues

You may owe homeowners association (HOA) dues if your home is located in an HOA community. Sellers are typically responsible for covering a prorated amount of their annual membership dues at closing.

If the HOA charges fees to transfer homeownership records to the buyer at closing, the seller usually pays them. Costs vary between communities, but they commonly range from $150 to $500. Check with your agent, attorney, or HOA board for more information on what you might owe.

Buyer’s closing costs

In addition to the costs outlined above, buyers may request that sellers cover some of their closing costs. Seller concessions include anything that the seller gives the buyer to close the deal.

Seller concessions often come in the form of seller credits towards the buyer’s closing costs — 2-3% of the home’s sale price is common — or home warranty policies. However, they can also include compromises that don’t hold monetary value, such as an agreement to close on a date that’s preferable to the buyer.

Title insurance

Title insurance protects home buyers or lenders from losses arising after the transaction due to previously unknown issues with the property’s ownership or title.

Lender’s title insurance, which is required for buyers who take out a mortgage, protects the financial institution in case a valid title claim comes up. Owner’s title insurance protects the owner’s interest in the property.

Lenders typically do not require an owner’s policy, but Maryland law allows buyers to purchase an owner’s policy at the same time that they purchase a lender’s policy, which could result in significant premium savings.

Home warranty

A home warranty offers the homeowner protection from high repair costs on major appliances and electrical and plumbing systems. The homeowner pays an annual or semi-annual premium and enjoys reduced service rates when a technician comes to evaluate or fix a problem.

The annual premium for a home warranty in Maryland averages $613 for a single-family home, according to Review Home Warranties. Premiums for townhomes and condos are lower at about $536 and $592, while premiums for multi-family homes average $1,069.

Sellers may offer to pay for a home warranty premium as a buyer incentive in Maryland. Covering this cost provides some peace of mind to potential buyers, which could sweeten the deal and result in a faster sale or more lucrative sale.

Inspection fees

Home buyers usually pay for home inspections in Maryland, with a standard inspection costing anywhere from $200 to $600 or more, according to Columbia-based Lakeside Title Company.

Buyers may also request a termite inspection. Maryland sales contracts have a termite clause, which is negotiable between the buyer and seller, and government lenders require proof of a termite inspection within 30 days of settlement.

Generally, the buyer pays for the termite inspection, while the seller pays for treatment and damages if an active colony is discovered, according to Long & Foster Real Estate, Inc. The cost of a termite inspection ranges from around $60 to $145 in Baltimore, HomeGuide reports.

It may be helpful to order a home inspection and/or a termite inspection before listing your house. Pre-listing inspections allow you to identify any problems with the house before the buyer can discover them, so there are fewer surprises during negotiations.

If the house is in good condition and pest-free, that’s also a selling point, allowing you to confidently set a higher price for the home. Buyer concerns in Maryland often involve leaky roofs and outdated HVAC systems, so consider repairing or replacing those items before listing the house.

Capital gains tax

The IRS offers a tax break on capital gains from the sale of your primary residence, as long as you meet certain requirements:

• Single homeowners can deduct up to $250,000 of gains from the sale of their property;
• Married couples can deduct up to $500,000 of gains. 
• You must have occupied the property for at least two of the past five years. 
• You can also deduct certain repairs and improvements from your home’s cost basis. 

» LEARN: How to avoid capital gains on a home sale

Cost of selling a house in Maryland calculator

Use our calculator to get a rough estimate of what you might walk away with in your home sale. Change the home sale price and closing costs to fit your particular situation. You can use a free home value estimator tool to plug in a potential home sale price, and change closing cost figures.

For more accurate numbers, we recommend finding a local realtor to provide you with a free seller’s net sheet: a personalized document that estimates how much you may earn in your home sale. 

Maryland closing costs: FAQs

Recommended reading

The True Costs of Selling a Home Revealed: What does it really cost to sell a house in the U.S.? We explore all of the common expenses in a home sale, and how you can save thousands.

How to Sell a House Without a Realtor in Maryland: Selling a home For Sale by Owner (FSBO) in Maryland means you won’t have to pay a listing commission, but there are major challenges you should learn about first.

How to Find a Realtor: Find out how you can connect with a great real estate agent. We help you zero in on the best approach, whether you’re selling or buying.

Seller Net Sheet Guide: Learn how a net sheet can help you estimate your potential home sale proceeds, and how to get one for free.

Negotiating Realtor Commission: Knocking your real estate commission down just one percentage point could save you a ton of money on your home sale.