Selling a home in Massachusetts comes with three kinds of costs: a few that are set by law, professional fees you negotiate, and decisions you control, like repairs and credits to the buyer. The only way to know what you’ll walk away with is to look at every line before you’re sitting at the closing table. Here’s how each one works.
Key takeaways
- The Massachusetts deed excise tax is $4.56 per $1,000 of sale price in Essex County. On a $600,000 sale, that’s $2,736.
- By custom the seller pays the deed excise tax, but who pays is negotiable and is set by your Purchase and Sale Agreement.
- Massachusetts closings are run by attorneys. You aren’t legally required to hire your own, but I strongly recommend it.
- Brokerage compensation isn’t set by law. There’s no standard rate, and what you pay your listing broker and anything you offer a buyer’s agent are separate, negotiated decisions.
- If your home was built before 1978, the lead law adds required paperwork before the Purchase and Sale Agreement is signed.
The costs set by law
Deed excise tax
This is the most predictable cost you’ll have. Massachusetts charges a tax when the deed is recorded, and outside Barnstable County the rate works out to $4.56 for every $1,000 of sale price. It scales with your price:
- $500,000 sale: $2,280
- $600,000 sale: $2,736
- $800,000 sale: $3,648
On the North Shore the seller customarily pays it. That’s a custom, not a law, so your attorney will make sure the Purchase and Sale Agreement says what was actually agreed.
Mortgage payoff and discharge
If you have a mortgage, it gets paid off at closing, and the discharge has to be recorded at the Registry of Deeds. The recording fee is small, but it’s a real line on your closing statement. Ask your lender for a payoff figure early so there are no surprises about the balance.
The professional fees you negotiate
Your attorney
In Massachusetts, an attorney conducts the closing. As a seller you aren’t required to hire your own, but I recommend it, and nearly every seller I work with does. In my transactions, the seller’s attorney drafts the Purchase and Sale Agreement, handles title issues, prepares the deed, and protects you at closing. Fees are usually a flat fee, and they vary by firm and how complicated the sale is. Ask for the fee and what it covers before you hire anyone.
Brokerage compensation
What you pay your listing broker is negotiated between you and the broker and written into your listing agreement. Nothing about it is set by law or by any association. Whether you offer anything to a buyer’s agent is a separate decision. I go through both with you, in writing, before a sign goes in the yard.
The small items sellers forget
- Smoke and carbon monoxide certificate. Required before you can transfer the property. Your local fire department does the inspection and charges a fee.
- Final water and sewer reading and a municipal lien certificate, which confirms there are no unpaid taxes or city charges on the property. Your attorney coordinates these.
- Property tax adjustments. Taxes are split between you and the buyer based on the closing date.
- Condo sellers: a 6(d) certificate from your association confirming your fees are paid up.
- Homes with a septic system: a Title V inspection.
None of these is large on its own. Together they’re the reason sellers say the closing statement surprised them.
If your home was built before 1978
A lot of the housing in Salem, Lynn, Beverly, and the rest of the North Shore was built before 1978. If yours was, the Massachusetts lead law applies. Before the Purchase and Sale Agreement is signed, you and your agent have to give the buyer the state’s Property Transfer Lead Paint Notification, a signed certification form, and any lead inspection reports or compliance letters you have.
The buyer then gets at least 10 days to do a lead inspection, or longer if you both agree. Skipping the notification can bring a state civil penalty of up to $1,000, plus federal penalties and liability. If a child under six will live in the home, the new owner may need to delead or bring it under interim control within 90 days of taking title. That’s the buyer’s obligation, but it’s part of why lead paperwork belongs at the start of your listing, not the end.
What you’re really after: your net
What your home is worth and what you walk away with are two different numbers. Before we list, I put together a net sheet for you that shows the sale price, every cost above, your mortgage payoff, and what’s left. If you’d like to see your own number, get a free home valuation or book a call with me.
Frequently asked questions
What closing costs does a seller pay in Massachusetts?
Most sellers pay the deed excise tax ($4.56 per $1,000 of sale price in Essex County), mortgage discharge recording, their attorney’s fee, brokerage compensation, and small municipal items like the smoke and CO certificate. Property taxes are adjusted between buyer and seller at closing.
Who pays the deed excise tax on the North Shore?
The seller, by custom. It’s negotiable, and your Purchase and Sale Agreement decides it.
Do I need my own attorney to sell my house?
It isn’t legally required, but I recommend it. An attorney conducts every Massachusetts closing, and having your own means someone is reviewing the contract and protecting your side of it.
What lead paint forms do I give a buyer for a pre-1978 home?
The Property Transfer Lead Paint Notification, the signed Property Transfer Certification, and any lead inspection reports or compliance letters you have, all before the Purchase and Sale Agreement is signed.
This article is general information, not legal or tax advice. Talk with your attorney or tax professional about your situation. Nina-Soto Realty, LLC, 116 Highland Ave., Suite 1, Salem, MA 01970. Equal Housing Opportunity.