What Are Closing Costs When Selling a House in Virginia?

A Line-by-Line Look at Settlement

Buying instead of selling? See my guide to buyer closing costs in Virginia. For the full selling process, start with my guide on how to sell a house in Virginia.

When you sell a home in Virginia, your settlement statement lists every charge and credit on your side of the sale. It can look like a wall of numbers the first time you see it. This guide walks through the items sellers commonly see, what each one is, how it generally works, and what to ask your title company or closing attorney.

If you want the bottom line instead, what you actually walk away with after everything, read my companion guide on the cost to sell a house in Virginia, which includes a worked example. Who pays which item depends on your purchase contract, and your title company or closing attorney will show exactly who pays what.

Who Handles Settlement in Virginia

Virginia closings are handled by a settlement agent, typically a title company or a real estate attorney. They collect the buyer's funds, pay off your mortgage, record the deed, pay the costs listed on the settlement statement and send you your proceeds.

Before closing, the settlement agent prepares a statement showing each charge and credit. Review it carefully and ask about anything you don't recognize. That's what they're there for.

Your Mortgage Payoff

Your payoff is usually the largest item on the statement. It's not the same as the balance on your last mortgage statement, because it includes interest through the payoff date and can include other amounts owed to the lender. The settlement agent requests an official payoff letter from your lender. Any home equity loan or line of credit secured by the home is paid off too.

Ask: Has the official payoff been requested, and does it include every loan or lien on the property?

Real Estate Commission

Commission is typically the largest selling cost after your payoff. It's negotiable, and your listing agreement and purchase contract determine it. It appears on the settlement statement and is paid from the sale proceeds at closing.

Ask: Does the commission on the statement match what my listing agreement and purchase contract say?

Transfer and Recording Taxes

Virginia and some localities charge taxes when a deed is recorded and property changes hands, including the grantor's tax and, in some areas, regional transfer taxes. The amount generally depends on the sale price.

Your purchase contract determines who pays these, and the settlement agent will show the exact figures on your statement.

Ask: Which transfer and recording taxes apply to this sale, and how are they shown on my side of the statement?

Settlement, Title and Document Fees

Settlement or closing fee: what the title company or attorney charges to handle the closing. Who pays it, or whether it's shared, depends on your contract.

Deed preparation: the new deed transferring the property has to be drafted, usually by an attorney.

Lien release: once your mortgage is paid off, a document releasing the lender's lien is recorded, and there may be a fee for preparing or recording it.

Other small charges, such as courier, wire or notary fees, can also appear. They're usually minor but should still be listed clearly.

Ask: Can you send me an estimated settlement statement early, so I can review each fee before closing?

Property Tax Prorations

Property taxes are divided between buyer and seller based on the closing date. Depending on how and when your city collects taxes and whether yours are paid through escrow, you may see a charge for taxes owed through closing or a credit for taxes you've already paid ahead.

Ask: How were property taxes prorated, and is there anything still owed or due back to me?

HOA and Condo Charges

If your home is in a homeowners or condo association, expect to see any unpaid dues, prorated dues and possibly fees tied to the sale, such as the cost of the resale disclosure packet or a transfer fee set by the association. Ordering the packet early helps avoid delays.

Ask: Has the association been contacted, and are all dues, fees and the disclosure packet accounted for?

Credits and Agreed Costs From Your Contract

Anything you agreed to in the contract shows up here too: seller help with the buyer's closing costs, repair credits after inspection, a home warranty you offered, or other negotiated items. These reduce your proceeds just like a fee does.

Ask: Do these credits match the final, signed version of my contract and any addenda?

Final Utility Bills and Other Items

Some localities and water providers require final readings or payment of outstanding water and sewer bills at or before closing. Other items, like unpaid code fines or judgments recorded against the property, can also need to be cleared.

Ask: Are there any liens, judgments or unpaid municipal charges that need to be paid at closing?

Questions to Bring to Your Title Company or Attorney

When can I see an estimated settlement statement? Which charges are mine under my contract? How and when will I receive my proceeds? What do I need to bring to closing, and can I sign remotely if I've already moved? Are there any title issues I should know about now?

If you're selling an inherited property or a home with a tenant, mention that early, since it can add steps. My pages on inherited property and selling a rental property cover those situations.

From Settlement Costs to Your Bottom Line

Once you understand each line, the next question is what's left for you. My guide to the cost to sell a house in Virginia puts everything together in a worked example, and my seller net proceeds calculator lets you run your own numbers.

As your Hampton Roads listing agent, I'll review your estimated settlement statement with you and make sure it matches your contract. Reach out to me and I'll put real numbers together for your home.

This article is general information, not legal or financial advice. Every sale is different, so confirm costs, disclosure duties and contract terms with your closing attorney, title company or tax professional before you make decisions.