How Much Are Seller Closing Costs in North Carolina?

Seller closing costs in North Carolina typically range between 6-10% of the total sales price when using a real estate agent. Common seller closing costs include real estate agent commissions, attorney fees, and property taxes. Continue reading to learn more and discover how to avoid paying closing costs!

Table of contents

1. How much are seller closing costs in North Carolina?
2. Common closing costs for sellers in North Carolina
3. How to calculate seller closing costs North Carolina
4. Who pays closing costs in North Carolina?
5. How to avoid paying closing costs North Carolina
6. Is it possible to sell a house and not pay closing costs North Carolina?

How much are seller closing costs in North Carolina?

In North Carolina, seller paid closing costs are fairly reasonable compared to other states. Aside from paying off your existing loans or property liens, the most significant expenses typically include real estate agent commissions and any agreed-to seller concessions offered to the buyer in the sales contract (if applicable). These closing costs are detailed on the Seller Closing Disclosure (or HUD Settlement Statement for cash transactions) at closing.

Common closing costs for sellers in North Carolina

Seller-paid closing costs in North Carolina are calculated and handled by the closing attorney’s office. These costs are deducted directly from the seller’s proceeds at closing, so the seller typically doesn’t need to pay out-of-pocket before the sale is finalized.

Loan/Mortgage Payoffs (and any other outstanding liens)

In North Carolina, the closing attorney will run a title search to discover any existing loans, liens, or judgments associated with the property. They will order payoffs to ensure that any outstanding balances are fully paid off and satisfied, allowing a clean deed transfer.

Real Estate Commissions

If you’re selling your house with the help of a real estate agent in North Carolina, you’ll typically be responsible for paying the commissions for both the listing agent and the buyer’s agent. While commission rates can vary, the total is usually between 5% and 6% of the home’s sale price—split evenly, with each agent receiving around 2.5% to 3%.

Excise Tax/Revenue Stamps

The State of North Carolina charges an excise tax (sometimes referred to as revenue stamps) on the transfer of real estate in the amount of $1.00 per $500.00 of the sales price. Excise tax is customarily paid by the seller, but payment is dictated by the sales contract and can be negotiated for either party.

How to calculate excise tax in North Carolina

Suppose you sell your Raleigh, NC house for $500,000 in 2024. Your excise tax can be calculated as follows:

$500,000 sales price x .002 (or $1 for every $500 of revenue) = $1,000

Property taxes

In North Carolina, county and city property taxes are prorated based on how many days the seller owned the home during the calendar year. If taxes haven’t been paid yet, the seller reimburses the buyer for their share. If the taxes are already paid, the buyer reimburses the seller for the portion covering their ownership period. These prorated amounts appear on the Closing Disclosure or HUD Settlement Statement at closing.

HOA Dues & Transfer Fees

If you live in an Homeowner’s Association (HOA) community, your HOA dues will be prorated at closing according to the payment status, whether monthly, quarterly, or annually. If the HOA requires a transfer fee to new owner, it is typically covered by the seller, but this can be determined by the terms of the sales contract and may be subject to negotiation. These transfer fees, usually amounting to no more than a few hundred dollars, are payable to the HOA management company.

Document Preparation

In North Carolina, it’s recommended to hire an attorney to prepare the deed and other essential seller documents for the property transfer and tax purposes. Seller document preparation fees usually range from $300 to $500, depending on the number of sellers. Costs may be higher when dealing with estates, heirs, or trusts.

In North Carolina, the closing attorney usually represents the buyer—not the seller—unless otherwise stated. While the attorney prepares the deed and other seller documents, this service does not provide legal representation for the seller during the transaction.

How to calculate seller closing costs North Carolina

Using the example above, here is a full breakdown of all potential closing costs when selling with a real estate agent. In this example, let’s say the homeowner still owed $200,000 on their existing mortgage:

Who pays closing costs in North Carolina?

Both buyers and sellers have distinct closing costs when completing a home sale. While we’ve detailed the seller’s closing costs, buyers in North Carolina typically pay for items like title and closing service fees, owner’s title insurance, transfer taxes, attorney fees, recording fees, prorated property taxes and HOA dues, mortgage fees, and appraisal costs.

How to avoid paying closing costs North Carolina

Sellers looking to avoid closing costs in North Carolina can choose to sell their house to a real estate investor who may cover all seller closing expenses. Real estate investors—often called house flippers or home buying companies—are typically more flexible and willing to pay closing costs if they see potential in your property. Selling directly to an investor also eliminates real estate agent commissions, saving you even more money.

Is it possible to sell a house and not pay closing costs North Carolina?

Yes, when selling directly to a buyer without the use of a real estate agent, it is possible to avoid paying closing costs and real estate commissions. Be sure to research reputable home buying companies in your area to find a cash home buyer who will buy your house and pay your closing costs.

These findings apply to all cities and towns in North Carolina, including Raleigh, Durham, Fayetteville, Johnston County, Sanford, Burlington, and surrounding areas.

Author: Jason Hill

I am a seasoned real estate agent and investor with nearly a decade of experience buying and selling homes in North Carolina. As the founder of Freedom Choice Investments my mission is to deliver simple and hassle free selling solutions to North Carolina homeowners. With the ability to either list your house or buy it as-is we have a unique offering that caters to those looking for ways to sell their house fast and hassle-free in North Carolina.