Caul Group Residential, brokered by eXp Realty
Selling a house in North Carolina usually costs the seller real estate commissions, the state excise tax of $1 per $500 of the sale price, deed preparation, paying off any mortgage or liens, and the seller's share of property taxes and HOA dues through closing. Many of these costs are negotiable, and your exact numbers show up on your seller settlement statement from the closing attorney.
Below is each cost, who normally pays it under the standard NC purchase contract, and a simple way to estimate what you will walk away with.
The costs most NC sellers pay at a glance
- Real estate broker commissions, which are negotiable
- State and county excise tax, also called revenue stamps or deed stamps
- Deed preparation and the documents the seller signs
- Payoff of your mortgage, home equity line and any other liens
- Your share of this year's property taxes, prorated to the closing date
- HOA disclosure, payoff and transfer fees, if you have an HOA
- Any special assessments approved before closing
- Anything you agree to in the contract, such as seller concessions, repairs or a home warranty
What the standard NC contract says the seller pays
The standard purchase contract in North Carolina is the NC REALTORS and NC Bar Association Offer to Purchase and Contract, Form 2-T. Under paragraph 8(i), the seller pays for preparing the deed and the other documents needed to complete the sale, plus state and county excise taxes and any deferred, discounted or rollback taxes. Paragraph 8 also says the seller pays off deeds of trust, liens and other charges not assumed by the buyer, and pays in full any special assessments approved before settlement.
The NC Real Estate Commission's closings guide lists the same pattern: the seller normally pays broker commissions, deed preparation, cancellation of existing liens and revenue stamps. It also notes that in most sales, who pays these fees is negotiable between buyer and seller.
Real estate commissions
Commissions are usually the biggest cost of selling, and they are negotiable. There is no rate set by law. What you pay your listing firm is set in your listing agreement, and any compensation you offer toward the buyer's agent is a separate choice. Form 2-T shows this with a line for "Buyer Agent Compensation, if any" next to seller concessions.
Before you sign a listing agreement, ask exactly what the fee is, what it covers, and whether you plan to offer anything toward the buyer's agent. Then use those numbers in your estimate below.
NC excise tax (revenue stamps)
North Carolina charges an excise tax on every deed. Under G.S. 105-228.30, the rate is $1 for each $500 of the price, or fraction of $500, and the seller (the "transferor") pays it to the county register of deeds before the deed is recorded. The Wake County Register of Deeds shows the same rate as $2 per $1,000.
Excise tax examples
- $500,000 sale: $500,000 divided by $500 is 1,000, so the tax is $1,000.
- $600,000 sale: the tax is $1,200.
- $750,000 sale: the tax is $1,500.
- $1,000,000 sale: the tax is $2,000.
If the price is not an even multiple of $500, round up to the next $500 before you divide, because the statute counts any fractional part as a full $500.
Paying off your mortgage and liens
Your mortgage is not a fee, but it comes out of your proceeds at closing. Form 2-T paragraph 8(a) has the seller help the closing attorney get payoff statements, and the payoff figure your lender gives can differ from the balance on your last monthly statement. Any home equity line, judgment or other lien must also be paid so the buyer gets clear title.
Property taxes and HOA dues at closing
Form 2-T paragraph 10 prorates property taxes on a calendar year basis, with the seller responsible through the date of settlement. NC property taxes are due September 1 and can be paid without interest until January 6 under G.S. 105-360. So the timing of your sale matters:
- If you already paid this year's bill, you usually get a credit for the part of the year after closing.
- If the bill is still unpaid, you will usually pay your share for January 1 through closing day.
HOA dues are prorated the same way. Under Form 2-T paragraph 9(a), the seller also pays fees for the HOA disclosure and resale certificates, for confirming the seller's account status (including any expedite fee allowed under G.S. 47F-3-102), and for updating the association's ownership records.
If you own in Wake County, our guide to the Wake County 2027 revaluation explains what is changing with values and tax bills.
Costs you choose to take on
Some costs only apply if you agree to them in the contract:
- Seller concessions. Form 2-T paragraph 1(e) lets you agree to pay a dollar amount or percent toward the buyer's closing costs.
- Repairs. Under paragraph 8(m), negotiated repairs must be done in a good and workmanlike manner, and the buyer can verify them before settlement.
- Home warranty. Paragraph 8(n) lets you agree to provide or pay for a one-year warranty, or none at all.
- Prep before listing. Cleaning, paint, landscaping, staging and photos are not closing costs, but they are part of what selling costs you.
Who pays the buyer's own costs, like their loan fees, title insurance and recording the deed, is covered in our guide to buyer closing costs in NC.
How to estimate your net proceeds
A simple way to estimate what you will walk away with:
- Start with a realistic sale price.
- Subtract the commissions in your listing agreement, plus any buyer's agent compensation you agree to.
- Subtract the excise tax ($1 per $500 of price).
- Subtract your mortgage payoff and any other liens.
- Subtract or add the property tax and HOA prorations.
- Subtract deed preparation, HOA fees and any concessions, repairs or warranty you agree to.
The number that drives everything is the sale price, so start there. Online estimates can be far off for a specific house, as we explain in how accurate online home value estimates are. Gains on the sale may also be taxable; the IRS explains the home sale exclusion in Topic 701, and a CPA can tell you how it applies to you.
Frequently asked questions
Who pays the excise tax when you sell a house in NC?
The seller. G.S. 105-228.30 makes the transferor pay the excise tax to the register of deeds before the deed is recorded, and Form 2-T paragraph 8(i) assigns state and county excise taxes to the seller.
How much is the NC excise tax on a $600,000 house?
$1,200. The tax is $1 for each $500 of the price, and $600,000 divided by $500 is 1,200.
Are real estate commissions negotiable in North Carolina?
Yes. No law sets the rate. Your listing fee is set in your listing agreement, and any compensation toward the buyer's agent is a separate term you agree to.
Does the seller pay the closing attorney in NC?
Under Form 2-T, the buyer pays the closing attorney's fees for the Closing Disclosure, settlement statements and recording. The seller pays for preparing the deed and the documents the seller signs. Some sellers also hire their own attorney.
Who pays property taxes in the year you sell in NC?
Both, by proration. Form 2-T prorates property taxes on a calendar year basis, with the seller responsible through the settlement date and the buyer after that.
Thinking about selling?
Our founder, Tina Caul, has been in real estate since 2001, and our team helps Triangle homeowners price, prepare and sell. If you want a clear starting number for your own estimate, request a free home value report. Thinking about timing? Read selling during the holidays or waiting for spring, or browse our seller resources.
We are the #1 Resale Team in the Triangle.
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