How Much Does It Really Cost to Sell a House in Maryland?

by Michael Wade

Short answer: Your cost to sell is a handful of line items: agent compensation, Maryland deed taxes, any repairs or credits, and payoff and moving costs. Some are fixed by law and some are negotiable. The best way to know your number is a net proceeds worksheet based on your actual price and loan balance.

Many sellers worry about being surprised at the closing table. Here's how to avoid that.

Infographic breaking down typical costs a Maryland seller should expect and how net proceeds are estimated

The main costs

1. Agent compensation. Commissions are not set by law and are fully negotiable. That's been stated plainly in the 2024 NAR settlement practice changes. Since August 17, 2024, offers of compensation to buyer agents can't be listed on the MLS, but sellers can still offer compensation off the MLS and can offer buyer closing cost concessions. Talk to any agent you interview about what's included and how buyer agent compensation is handled. [VERIFY: current Maryland practice; do not quote a percentage.]

2. Maryland transfer and recordation taxes. Three deed taxes apply: the 0.5% state transfer tax, a county transfer tax in most counties, and a county recordation tax. By default, buyer and seller split them equally, unless the contract says otherwise. Based on fiscal year 2026 rates, total deed taxes on a $400,000 home with no exemptions run roughly $7,600 in Frederick County, $8,800 in Anne Arundel, $9,000 in Howard, $9,560 in Montgomery, and $12,000 in Baltimore City. Your share by default is about half. [VERIFY with title company; source: jungmarker.com/guides/maryland-closing-costs-by-county citing DLS FY2026.]

If the buyer is a first-time Maryland buyer, state law says the seller pays the state transfer tax (reduced to 0.25%) and, unless the contract expressly says otherwise, the recordation and county transfer tax. This can change your net, so I check it early. [VERIFY.]

3. Repairs and credits. Anything you agree to after the buyer's inspection. This can be zero or can be meaningful. Pricing your house with condition in mind can reduce surprises.

4. Mortgage payoff and liens. Not a cost of selling, but money that comes out of your proceeds.

5. Title and settlement fees. Who pays which fee varies by contract and practice. Ask your title company for a seller's estimate.

6. Prep and moving. Cleaning, paint, storage, movers, utilities overlap, and possibly a short rent-back or temporary housing.

7. Possible taxes on gain. If you have a profit, tax rules may apply. Talk to a tax professional. I can't advise on that.

A quick example

Say you sell for $500,000 and owe $300,000.

Start with the price: $500,000
Subtract agent compensation (whatever you've agreed to)
Subtract your share of deed taxes (use your county's rates)
Subtract credits or repairs
Subtract your payoff: $300,000
What's left is your estimated proceeds, before taxes on any gain

I can run those numbers for your home so you see them in dollars, not guesses.

How to keep more of your money

Interview two or three agents and ask how they'd market the home, what the fee covers, and how results compare. The lowest fee isn't always the best result, and the highest isn't either.
Read the listing agreement. Check the term, how and when fees are earned, and what happens if you change plans. Negotiate anything that feels unclear.
Price right. Overpricing can lead to price cuts and longer time on market.
Prep smartly. Cheap fixes usually beat big renovations. See my post on fixing before selling.

Let's get you a real number

My Seller Pricing Analysis is a detailed report for your home, and I'm happy to walk through your net proceeds with you. You can also see how I market homes in my Listing Distribution System, or book a 15-minute call. No pressure.