Updated on: October 29, 2026
Seller closing costs in Bethesda, MD, are the fees and taxes taken out of a seller's proceeds at settlement. Most of these lines are percentages of the price, so they grow with the median home price in Bethesda, MD.
Buyers and sellers carry different costs at the closing table: buyers focus on loan origination fees and appraisal costs, while sellers carry real estate agent commissions and a share of the transfer taxes.
Key Takeaway
Commission and your share of Maryland and Montgomery County transfer and recordation taxes make up most of what a Bethesda seller pays at settlement. Settlement fees, prorations and any buyer credits make up the rest. By law the taxes are split equally unless the contract says otherwise, but that default shifts most of them to you when the buyer is a first-time Maryland buyer. Compare every offer by its net to you, using a net sheet.
Who This Guide Is For
Homeowners in Bethesda and the rest of Montgomery County who plan to sell and want to estimate what they will keep after settlement.
Seller Closing Costs at a Glance
- State transfer tax: 0.5% of price; 0.25% for first-time Maryland buyers.
- Montgomery County transfer tax: 1.0% of the selling price.
- Recordation tax: $4.45 to $11.35 per $500, rising by price tier.
- Taxes split equally by default; first-time buyers shift them to sellers.
- The buyer's loan program caps how much seller credit is allowed.
What Sellers Pay at Settlement
Bethesda sellers usually pay about 7% to 8.3% of the sale price in commission plus their share of transfer and recordation taxes. That range comes from the net proceeds example below and is before settlement fees, prorations, credits and your mortgage payoff.
- Commission (listing and any buyer-agent compensation): paid by the seller; a percentage of the price set in your listing agreement.
- Maryland state transfer tax: split by default; a percentage of the price (see "Maryland state transfer tax").
- Montgomery County transfer tax: split by default; a percentage of the price (see "Montgomery County transfer tax").
- Montgomery County recordation tax: split by default; a tiered rate that rises with price (see "Montgomery County recordation tax").
- Mortgage payoff and release: seller; a variable amount set by your lender.
- Settlement and title company fees: seller's share; fixed fees that vary by company.
- Property tax and HOA dues prorations: shared by days owned; variable.
- Condo or HOA resale package: seller; a fixed fee.
- Seller credits and inspection repairs: seller; variable, set by negotiation.
You do not need to bring cash to the closing table to cover these expenses unless your proceeds fall short. The title company deducts the total directly from your proceeds before sending the remaining funds to your bank account.
A net sheet from your agent gives the best early estimate, and it should be updated as offers arrive. The settlement company provides the itemized settlement (ALTA) statement a few days before closing. It shows every charge, credit and prorated fee exactly.
Maryland and Montgomery County Transfer and Recordation Taxes
When the deed is recorded, Maryland and Montgomery County each tax the sale price.
Maryland State Transfer Tax
The state transfer tax is 0.5% of the price under Md. Code, Tax-Property §13-203.
The rate drops to 0.25% when improved residential property is sold to a qualifying first-time Maryland home buyer who will live in it as a principal residence. If there are two or more buyers, each must qualify, though a co-signer on the mortgage who will not live there does not disqualify the sale.
Montgomery County Transfer Tax
Montgomery County's transfer tax is 1.0% of the selling price, or $1,000 for every $100,000. The county has no separate reduced rate for first-time buyers; the first-time buyer rule changes only who pays it.
Montgomery County Recordation Tax
The recordation tax is charged per $500, or fraction of it, of the price on the deed. Rates rise by tier, and each rate applies to the part of the price inside that tier. These rates took effect October 1, 2023, under County Council Bill 17-23:
- First $500,000: $4.45 (about 0.89%)
- $500,000.01 to $600,000: $6.75 (about 1.35%)
- $600,000.01 to $750,000: $10.20 (about 2.04%)
- $750,000.01 to $1,000,000: $10.78 (about 2.156%)
- Over $1,000,000: $11.35 (about 2.27%)
At a price at the top of the fourth tier, the tiers add up to $14,250. An $890 exemption is available for owner-occupied residential property, and the settlement company applies it when the sale qualifies.
Who Pays: The Default Split and the First-Time Buyer Rule
Under Md. Real Property §14-104, unless the contract says otherwise, the parties are presumed to share recordation tax and state and local transfer taxes equally. When the buyer is a qualifying first-time Maryland home buyer who will occupy the home, the seller pays the entire state transfer tax at the reduced rate. Unless the contract expressly provides otherwise, the seller also pays the entire recordation tax and county transfer tax.
A first-time Maryland home buyer is someone who has never owned a principal residence in Maryland. Qualification is usually shown through a sworn statement submitted at recording.
- Read the tax section of the contract: it controls who pays, so check it before accepting.
- Weigh tax terms against price: a first-time buyer's offer carries a higher tax bill for you, and accepting a slightly lower price with better tax terms can sometimes result in higher net proceeds.
Itemized Seller Fee Checklist
Mortgage Payoff and Release
The payoff includes interest through the payoff date, so it will be higher than the balance on your last statement. Any home equity line must also be paid off and released. The settlement company orders the payoff figure from your lender and wires the payoff at closing.
Settlement and Title Company Fees
Settlement agents charge to prepare the deed, hold funds in escrow and conduct the closing, so ask for fee schedules up front. The title search also turns up any liens or judgments against the property, and those are paid from your proceeds before you receive the balance. Confirm in the contract and with the settlement company who pays for the owner's title insurance policy.
Many title companies now offer remote online notarization for sellers who have already moved out of state.
Property Tax and HOA Dues Prorations
The final settlement statement prorates property taxes to the exact day of closing, and the adjustment can go either way. Taxes you have already paid for days after settlement come back to you as a credit from the buyer. Taxes owed but unpaid for the period you owned the home are charged to you. HOA or condo dues prorate the same way.
Condo or HOA Resale Package
The association or its management company charges the seller to prepare the resale disclosure package the buyer must receive. Maryland law limits what an association can charge for this package, so ask the management company for its current fee when you list.
Repairs, Inspection Credits, and Move-Out Costs
Repairs agreed after the inspection, or a credit in place of them, are often the biggest unplanned cost, so budget a contingency even for a well-kept home. Pre-listing prep, cleaning, moving and carrying two homes never appear on the settlement statement, but they still reduce what you keep.
Seller Concessions and Closing Credits
A buyer can ask you to cover part of their closing costs as a credit, either in the offer or after the inspection. The credit comes off your proceeds dollar for dollar. Maryland buyers typically pay lender fees, lender's title insurance and their share of the transfer and recordation taxes, and a credit can go toward those costs.
Conventional loans backed by Fannie Mae and Freddie Mac set credit limits based on down payment and occupancy, and FHA and VA loans have their own limits. A credit also cannot exceed the buyer's actual closing costs, so ask the buyer's agent to confirm the lender's limit before agreeing to a number.
Compare a credit with an equal price cut. The credit leaves the contract price unchanged, while a price cut also slightly lowers your commission and your share of the transfer and recordation taxes. On the example's price, a $10,000 price cut saves about $550 in commission and just under $200 in your default tax share.
How Property Type and Price Change Your Costs
Your home's final sale price drives most of your closing costs, and property type shapes that price.
- Price tiers: the tiered recordation tax raises the effective rate as the price crosses each tier.
- Condos and HOA homes: these add the resale package and prorated dues. The monthly association fee itself is an ongoing cost of ownership, not a closing cost.
- Townhomes: these usually fall between condos and detached homes on price, and so on taxes and commission.
To compare price points by property type, browse:
- Homes for Sale in Bethesda
- Homes for Sale in Chevy Chase
- Homes for Sale in Potomac
- Homes for Sale in Georgetown
- Homes for Sale in Logan Circle
- Homes for Sale in Takoma Park
Net Proceeds on a Typical Bethesda Sale
This illustration uses a $1,200,000 sale price, close to the Bethesda median this year. It assumes a total commission at the top of the Maryland average range of about 5.4% to 5.5%.
Net proceeds = sale price minus commission minus seller's share of transfer and recordation taxes minus settlement fees minus prorations minus credits and repairs minus mortgage payoff.
Taxes below use the rates above, before the recordation exemption. Credits are set at zero, and settlement fees and prorations come from your settlement company's quote.
- Sale price: $1,200,000 in both cases.
- Commission: $66,000 in both cases.
- State transfer tax: $3,000 under the default split (half of $6,000); $3,000 with a first-time buyer (all of the reduced rate).
- County transfer tax: $6,000 under the default split; $12,000 with a first-time buyer.
- Recordation tax: $9,395 under the default split; $18,790 with a first-time buyer.
- Seller's tax share: $18,395 under the default split; $33,790 with a first-time buyer.
- Proceeds before settlement fees, prorations and mortgage payoff: $1,115,605 under the default split; $1,100,210 with a first-time buyer.
Each 1% of the example price equals $12,000. On a $300,000 price, transfer and recordation taxes total $7,170. The seller's default half is $3,585, or $6,420 if the buyer is a first-time Maryland buyer.
Ways to Lower Your Settlement Expenses
The tax rates are set by law, but commission and settlement fees leave room for adjustment, so review your options before signing a listing agreement or accepting an initial offer.
- Commission: negotiate the listing fee and any buyer-agent compensation in writing before signing the listing agreement, and compare agents' services so you get fair market value for the fee. If an offer asks you to pay the buyer's agent, weigh that request on net, as you would the price.
- Title fees: review the title company's fee sheet and ask to remove duplicate courier or administrative charges.
- Credit format: offer a flat-dollar credit rather than a percentage-based credit to cap your financial exposure.
For a net sheet on your own home, you can meet the team, see the neighborhoods served, or read more on the blog.
Frequently Asked Questions
Are Seller Closing Costs Tax-Deductible in Maryland?
Commission, settlement fees and your share of transfer taxes are not deducted like an expense. Instead, they reduce your amount realized (sale price minus selling expenses), which lowers your taxable gain. If you owned and lived in the home for two of the last five years, you can exclude up to $250,000 of gain, or $500,000 for a married couple filing jointly.
Maryland adds a 2% tax on net capital gains when federal adjusted gross income exceeds $350,000. Gain on a primary residence sold for less than $1,500,000 is excluded, so selling costs that reduce your gain matter most on sales at or above that price. Talk to a CPA before listing.
How Do HOA Transfer Fees Work When Selling a Bethesda Condo?
Beyond the seller's resale package fee, the buyer is usually responsible for any one-time initiation or capital contribution fees the association charges at settlement.
Is $20,000 in Closing Costs a Lot When Selling in Bethesda?
Not if it includes commission. Near the Bethesda median price, the seller's default share of transfer and recordation taxes alone comes close to $20,000, and a first-time buyer or commission adds far more (see the net proceeds example).
What if I No Longer Live in Maryland When I Sell?
Maryland withholds tax from a nonresident seller's proceeds at settlement: 8.75% for individuals and 8.25% for entities. The withholding is a prepayment toward your Maryland income tax, with no extra tax added. To reduce or avoid it at closing, file Form MW506AE with the Comptroller no later than 21 days before settlement.
What Happens if My Proceeds Don't Cover the Payoff and Closing Costs?
The settlement company must pay off every lien to deliver clear title, so you bring the difference to settlement. If your loan balance is close to the likely price, run a net sheet before you list and, if needed, ask your lender to approve a short sale.
