The main cost categories
Rather than memorizing a percentage, it helps to think in categories. Each one behaves differently and several are negotiable.
- Brokerage compensation — negotiated in the listing agreement, and separately negotiable regarding any compensation offered to a buyer's broker.
- North Carolina excise tax on the transfer of real property, customarily paid by the seller. A small number of counties impose an additional local transfer tax.
- Attorney and settlement-related fees, including document preparation and recording items assigned to the seller.
- Loan payoff, including accrued interest through the payoff date, plus any liens that must be released.
- Prorations: property taxes, HOA dues and, where applicable, other periodic charges divided as of the settlement date.
- Negotiated items: buyer closing-cost concessions, repair credits, or a home warranty if agreed.
- Pre-listing preparation: cleaning, repairs, staging or photography, depending on the property and strategy.
North Carolina excise tax
North Carolina imposes an excise tax on instruments conveying an interest in real property, collected by the register of deeds when the deed is recorded. It is customarily paid by the seller, though payment responsibility is ultimately a contract term.
A limited number of North Carolina counties also levy a local land transfer tax under separate authority. Your closing attorney will confirm what applies in the county where the property is located.
Estimating your net
The practical question is not 'what are the costs' but 'what do I keep.' Model the sale price, the loan payoff, the negotiated items and the closing-date prorations together. The Net-to-Seller Calculator on this site is built for that, and your closing attorney produces the binding figures on the settlement statement.
Frequently asked questions
- Is real estate compensation set by law?
- No. Compensation is negotiable between the parties and their brokers, and is agreed in writing.
- Who pays the excise tax in North Carolina?
- It is customarily paid by the seller and collected at recording, but the allocation is ultimately what the contract states.
- Do I have to pay for repairs the buyer requests?
- Repair requests during due diligence are negotiable. A seller may agree, offer a credit, or decline, subject to the contract terms.
Sources & references
Important notice
This guide is general educational information. It is not financial, tax or lending advice, and it is not a loan commitment or an offer of credit. Program availability, requirements, rates and costs vary by lender, program and borrower, and change over time. Confirm details with a licensed lender or tax professional.