What sellers pay at closing in Virginia
The tax Virginia puts on the seller, the two regional fees in Northern Virginia, and the other costs that come out of your side of the sale.
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The short answer
In Virginia the seller pays the state grantor tax, 50 cents for each $500 of the price, unless the contract shifts some of it to the buyer. In localities that belong to the Northern Virginia Transportation Authority, regional fees of $0.10 per $100 can be added, also charged to the seller by default. On top of that, sellers usually pay off their mortgage and any liens, their share of property taxes, and any agent commission they agreed to, which is negotiable.
Step by step
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1
Grantor tax: 50 cents per $500
Code of Virginia § 58.1-802 puts this tax on the grantor, which is the seller. That works out to $400 on a $400,000 sale. The law lets buyer and seller agree that the buyer pays part or all of it.
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2
Northern Virginia regional fees
In a county or city that belongs to the Northern Virginia Transportation Authority, § 58.1-802.3 adds a regional WMATA capital fee of $0.10 per $100. § 58.1-802.4 adds a regional congestion relief fee at the same rate in the planning district that meets its population and transit tests (the law names Planning District 8). Both are the seller's by default, and the contract can shift them.
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3
Recordation tax is a separate line
The state recordation tax under § 58.1-801 is 25 cents per $100 of the price or value, whichever is greater. That section doesn't say the seller pays it, so check your contract to see who does.
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4
Payoffs, prorations and commission
Your mortgage payoff and any liens come out of the proceeds, and property taxes are split for the days each side owns the home. If you list, the commission is whatever you negotiate with your agent; NAR says agent compensation remains fully negotiable.
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Read the settlement statement
Before closing, ask the settlement agent for a draft statement. Every tax, fee and payoff is listed there, with your name or the buyer's next to it.
Sources: Code of Virginia § 58.1-802, additional tax paid by grantor · Code of Virginia § 58.1-802.3, regional transportation improvement fee · Code of Virginia § 58.1-802.4, regional congestion relief fee · Code of Virginia § 58.1-801, recordation tax on deeds · National Association of REALTORS, Home Sellers: Here's What the NAR Settlement Means for You
This is general information, not legal or tax advice. Rates and rules change; confirm the numbers for your sale with your settlement agent, an attorney or a tax professional.
Cash offer vs listing
Example: a $250,000 home
| Offer | $205,000 |
|---|---|
| Repairs | $0 |
| Commissions | $0 |
| Closing costs | $0 |
| You walk away with | $205,000 |
| In 7 to 14 days | |
| Sale price | $250,000 |
|---|---|
| Repairs | about $8,000 |
| Commissions | about $13,800 |
| Closing and holding | about $6,000 |
| You walk away with | about $222,200 |
| In 60 to 90 days | |
Example only. Your numbers depend on your home and market.
When we show the cash offer next to what listing could net, we list each of these costs line by line and who pays it.
Frequently asked questions
How much is the grantor tax in Virginia?
It is 50 cents for each $500 of the price, or $400 on a $400,000 sale. By law the seller pays it unless the buyer agrees to take on part or all of it.
Do Northern Virginia sellers pay more?
They can. In localities that belong to the Northern Virginia Transportation Authority, a regional WMATA capital fee of $0.10 per $100 applies, and a regional congestion relief fee at the same rate applies in Planning District 8. Both fall on the seller unless the contract says otherwise.
Is the real estate commission set by law?
No. If you list with an agent, the commission is negotiated between you and the agent. On a cash sale to us there is no commission.
Who are you?
We are real estate investors based in Baltimore, helping homeowners since 2016. We buy houses directly for cash. We are not a licensed real estate brokerage and do not list homes ourselves; if listing could get you more, we show you the math so you can choose.