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Closing Costs When Selling a Paid-Off Home
Selling a paid-off home removes the mortgage payoff, but not the closing costs. What to expect at closing when your mortgage is already gone — the costs that remain and the money you keep.
What closing costs do you pay when selling a home that’s paid off?
Even with no mortgage to pay off, sellers still have closing costs — typically the real estate commission, New York State transfer taxes, attorney fees, and any prorated property taxes or agreed concessions. Because there’s no loan payoff, a larger share of the sale price is equity you keep. The exact figures depend on your sale price and terms, but knowing the categories up front helps you estimate your net proceeds.
A common question from downsizers who’ve paid off their mortgage: “If I don’t owe anything, what comes out at closing?” It’s a great question, because a paid-off home changes the math in your favor — but there are still standard seller costs to plan for.
Selling a paid-off home: the costs that still apply
No mortgage payoff means more equity stays with you
Paying off your mortgage removes the biggest line item — the loan payoff — but standard selling costs remain.
These come out of your proceeds at closing, and what’s left is yours. Understanding your home’s value is the starting point for estimating the total.
Selling a paid-off home: estimating your net proceeds
Your net is the sale price minus these standard costs:
Commission
The real estate commission is typically the largest cost. Commission is negotiable and is agreed in writing before your home goes on the market.
New York transfer taxes
New York State charges a transfer tax on home sales, calculated on the sale price. Your attorney handles this at closing.
Attorney and misc. fees
New York sales typically involve an attorney, plus smaller fees and any prorated taxes or agreed concessions.
How I help you plan for selling a paid-off home
Before you list, I’ll walk you through an estimated net sheet — your likely proceeds after all costs — so there are no surprises at closing. For a paid-off home, that number is often a pleasant one.
Current transfer tax rates and filing rules are published by the New York State Department of Taxation and Finance.
Frequently asked questions
Do you still pay closing costs if your home is paid off?
Yes. You avoid the mortgage payoff, but standard seller costs remain — commission, New York transfer taxes, attorney fees, and any prorated taxes or concessions.
What are the main seller closing costs in New York?
Typically the real estate commission, New York State transfer tax, attorney fees, and prorated property taxes. Your attorney itemizes these at closing.
More on selling a paid-off home
What is the New York transfer tax on a home sale?
New York State charges a transfer tax based on the sale price. The State rate is $2 for every $500 of the sale price, which works out to 0.4%, and the seller normally pays it. Homes selling for $1 million or more also carry an additional 1% mansion tax, normally paid by the buyer. Your attorney confirms the exact figures at closing.
How much will I actually keep from the sale?
With no mortgage, a large share of the sale price is equity you keep, minus the standard costs above. I prepare an estimated net sheet so you know your likely proceeds.
Can you estimate my proceeds before I list?
Yes — I’ll prepare an estimated net sheet based on your likely sale price and costs. Call (518) 466-3679 to get started.
A paid-off home usually means a rewarding closing — and knowing the costs in advance lets you plan your next move with confidence.
Licensed Real Estate Salesperson · Coldwell Banker Prime Properties
📞 (518) 466-3679 · ✉ carolyn@carolynlukehomes.com
Serving Albany, Schenectady, Rensselaer & Saratoga Counties since 2010
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