What Home Sellers in Virginia Pay at Closing: Transfer Taxes and Costs

The Two Main Transfer Taxes in Virginia

Virginia places two tax levies on a home sale at closing. They are distinct, and knowing who typically pays each will keep you from being surprised by your settlement statement.

• The grantor's tax (the seller's transfer tax)

  Under Virginia law, the seller is usually responsible for the grantor's tax, which is roughly $0.10 per $100 of the sale price (about 0.1%). In some regions, including parts of Northern Virginia, an additional regional grantor or transportation add-on applies, so the seller's share can run higher. This is the transfer tax you most often see on a seller's settlement sheet.

• The recordation tax (typically the buyer's cost)

  When the deed is recorded, Virginia charges a state recordation tax of about $0.25 per $100 (roughly 0.25%). By convention this is paid by the buyer, not the seller, though the split is negotiable and recorded in the purchase contract.

The exact dollars depend on the sale price, the county, and any regional add-ons where the property sits. Treat these percentages as a starting point and ask your settlement attorney or title company for a written estimate early in the process.

The Real Estate Commission: Your Largest Line Item

For most sellers, the commission paid to the real estate professionals involved in the sale is the single biggest closing cost, commonly in the range of 5 to 6 percent of the sale price, though it is negotiable. Throughout the Fredericksburg, Stafford, and Spotsylvania region, sellers also often agree to compensate a buyer's agent, an arrangement that has become a point of negotiation in the years since national industry changes. The exact terms are set in your listing agreement and the sales contract, so it pays to review them carefully before you sign.

Other Costs Sellers Commonly Pay

• Paying off any existing mortgage. Your current loan balance is paid from the proceeds at closing.
• Prorated property taxes. You pay the portion of the year's taxes up to the closing date; the buyer covers the remainder.
• Settlement and title fees. Title search, escrow, and recording service charges are routine parts of the closing.
• Any agreed concessions. If the contract includes repairs, credits, or assistance toward the buyer's costs, these come out of your proceeds.

Excluding the commission, sellers in Virginia often budget roughly 2 to 3.5 percent of the sale price for closing costs. When you include a typical commission, the combined total can fall in the ballpark of 7 to 11 percent of the sale price. Every sale differs, so a written estimate from your title company is the most reliable number.

Why This Matters When You Downsize

Knowing your selling costs before you list helps you calculate what you will actually walk away with. That number, combined with what your next home will cost, tells you how much equity you can free up for retirement, repairs, travel, or simply peace of mind. It is the financial core of any downsizing decision.

A clear, written estimate that breaks out your commission, taxes, and fees should be part of your listing conversation from day one. When you understand the costs, you can plan around them instead of being surprised by them.