Closing Costs 101 for Sellers

September 25, 2025

One big question we get from sellers all the time is—what are my closing costs going to be? To translate that, what sellers really mean is—what is the cost of selling my Denver area home, so I can figure out what I will net. One of the title companies we recommend and trust has a plug- and-play Seller Net Sheet that we typically use to help our sellers figure out an estimate of how much they will net.

I do think it is helpful to know in general what the cost of sale is when selling your home. Most sellers have the same type of costs minus a few exceptions, so it is easy to have a general idea of the costs of sale, but I will explain each cost in more detail in the next few paragraphs. As a seller, you will see all of these costs itemized at Closing on the Settlement Statement.

Property Taxes »

At Closing, sellers are responsible for taxes for the part of the year that they owned the property. In Colorado, taxes are paid in arrears, meaning they are paid the year after (i.e., 2024 property taxes are due in 2025 for homeowners). Because of this, if a seller is closing on September 30, 2025, the seller would be responsible to pay the taxes from January 1, 2025 until September 29, 2025 at Closing. So, when the taxes are due in 2026 for 2025, the buyer would have already received a credit for the taxes from January 1, 2025 to September 29, 2025, meaning the new buyer cannot come back to the seller in 2026 when the taxes are due. In Colorado, the buyer owns the day of Closing, so that is why, in my example, the seller only pays until the 29^th.

Agent Compensation »

In most cases, the seller is paying the compensation for both the buyer’s agent and listing agent, unless something else has been agreed upon at time of contract. As a seller, the amount you agreed upon with the listing agent regarding the listing agent’s and buyer’s agent compensation is stated in your listing agreement. However, it is important to note that due to recent changes in the real estate commission regulations, the amount you pay for a buyer co-op is determined and finalized at time of accepting a contract and is completely negotiable on a case-by-case basis with each offer.

Seller Concession »

A seller concession would also be on your Settlement Statement as a closing cost and taken out of your net proceeds. As a seller, if you agreed to pay any seller concession at the time of the offer and/or after inspection, a combined total seller concession for these items would be on the Settlement Statement as well.
 

Title Fees »

Another item that is a cost of sale is the fee the title company charges to do the real estate paperwork. With most sales, that fee is split between sellers and buyers, so the seller usually pays half. For example, at the moment, Land Title Guarantee Company charges $400 total for their closing service fee, and the seller would likely be responsible for $200 of that.

HOA Fees »

Not everyone’s property has a homeowner’s association (HOA), but if the seller’s home is in an HOA, the seller would have to pay for the portion of the time they lived in the home. Some HOAs are monthly or even quarterly, so this will vary. If the seller paid at the beginning of the month, they may actually get a credit back from the buyer. Besides the regular assessment, there are also fees associated with transferring the HOA from the seller’s name to the buyer’s name. These fees can be called different names. Who is paying these fees depends on how the purchase agreement is written and what terms are agreed upon at time of contract.

Water Bill »

A debit for the water bill is another item that will show up on the Settlement Statement. Because water is a lienable item, title will collect money to ensure the final bill is paid off at Closing. The title company will take a much higher amount than is typical (due to water usage varying month to month and then making sure they have enough funds to cover any final bill). The overage will be returned to the seller.

Miscellaneous »

There may be other fees depending on a seller’s individual situation. If a seller has back taxes, or a special assessment to pay off, those items will be on the Settlement Statement. Each seller’s situation is different.

At TK Homes, we pride ourselves in netting you the most at the closing table. We would be happy to do a Seller Net Sheet for you and will discuss the line items on your Settlement Statement with you. Rest assured, we will make sure that you understand your final figure. If you are interested in selling or buying a Denver area home, contact a TK Homes agent today, and we will help make your real estate goals a reality!

~ Written by TK Homes REALTOR®, Mary Smith