How Much Does It Cost to Sell a House in Washington, DC? (2026 Update)
How Much Does It Cost to Sell a House in Washington, DC? (2026 Update)
Selling a home in Washington, DC comes with a unique set of costs that can catch even experienced homeowners off guard. Between the District's distinctive transfer and recordation tax structure, standard closing fees, and agent commissions, sellers typically pay between 7% and 10% of their sale price in total costs—a significant chunk of equity on DC's median home price of approximately $700,000.
This comprehensive guide breaks down every cost you'll encounter when selling your DC home in 2026, explains the District's specific tax requirements, and shows you practical strategies to minimize expenses and maximize your net proceeds.
Quick Answer:
Selling a house in Washington, DC typically costs between 7% and 10% of the sale price. For a $700,000 home, expect to pay roughly $49,000 to $70,000 in total selling costs, including the seller's transfer tax (1.1%–1.45%), agent commissions (typically 5%–6%), title fees, and miscellaneous closing costs.
Key Takeaways
- Total selling costs: 7%–10% of sale price (roughly $49,000–$70,000 on a $700,000 home)
- Transfer tax (seller pays): 1.1% under $400K or 1.45% over $400K (applied to entire amount)
- Recordation tax (buyer typically pays): Same rates, but negotiable in contract
- Agent commissions: Average 5.50% in DC (negotiable—some agents offer 1.5% listing fees)
- Closing costs (excluding commissions): Approximately 2.5%–3% of sale price
- Capital gains exclusion: Up to $250K single / $500K married for primary residence
Table of Contents
- Total Cost Overview: What DC Sellers Actually Pay
- DC Transfer & Recordation Taxes Explained
- Real Estate Agent Commissions
- Standard Closing Costs Breakdown
- Pre-Sale Preparation Costs
- Capital Gains Tax Considerations
- Cost Timeline: When You Pay What
- How to Reduce Your Selling Costs
- Common Mistakes DC Sellers Make
- Alternatives to Traditional Home Sales
- Net Proceeds Examples by Price Point
- Frequently Asked Questions
- DC Home Selling Glossary
Total Cost Overview: What DC Sellers Actually Pay
When selling a home in Washington, DC, your costs fall into several distinct categories. Understanding each one helps you budget accurately and identify where you might be able to save money.
| Cost Category | Typical Range | On $700K Home |
|---|---|---|
| Transfer Tax (Seller) | 1.1%–1.45% | $10,150 |
| Listing Agent Commission | 1.5%–3% | $10,500–$21,000 |
| Buyer's Agent Concession* | 0%–3% | $0–$21,000 |
| Title & Settlement Fees | $1,500–$3,000 | $2,000 |
| Owner's Title Insurance | 0.5%–1% | $3,500–$7,000 |
| Recording Fees | $50–$200 | $100 |
| Prorated Property Taxes | Varies | $500–$2,000 |
| Attorney Fee (if used) | $500–$1,500 | $800 |
| Home Prep & Repairs | $1,000–$15,000 | $3,000 |
| TOTAL ESTIMATED | 7%–10% | $49,000–$70,000 |
*Following the 2024 NAR settlement, sellers may choose whether to offer buyer's agent compensation. Many DC sellers continue offering this to attract more buyers.
Where Your Money Goes (Visual Breakdown)
DC Transfer & Recordation Taxes Explained
Washington, DC has two separate taxes that apply when property changes hands: the Deed Transfer Tax (typically paid by the seller) and the Deed Recordation Tax (typically paid by the buyer). Together, these are among the highest transfer-related taxes in the nation.
Both taxes use the same tiered rate structure based on the property's sale price. Understanding these taxes is critical because they represent one of your largest non-negotiable costs.
| Sale Price | Transfer Tax Rate | Recordation Tax Rate | Combined Rate |
|---|---|---|---|
| Under $400,000 | 1.1% | 1.1% | 2.2% |
| $400,000 and above | 1.45% | 1.45% | 2.9% |
⚠️ Important: Rate Applies to Entire Amount
Unlike graduated tax brackets, the 1.45% rate applies to the entire sale price once you exceed $400,000—not just the amount over $400,000. A $401,000 sale triggers the higher rate on all $401,000.
Who Pays What in DC?
By default in the Greater Capital Area Association of Realtors (GCAAR) contract used in DC:
Seller Typically Pays:
- Deed Transfer Tax
- Listing agent commission
- Owner's title insurance
- Settlement/escrow fees
Buyer Typically Pays:
- Deed Recordation Tax
- Buyer's agent (if applicable)
- Lender's title insurance
- Loan origination fees
However, these defaults are negotiable. In competitive markets, sellers may offer to pay part of the buyer's recordation tax as an incentive. Conversely, in slower markets, buyers may request the seller cover additional costs.
Transfer Tax Calculation Examples
| Sale Price | Rate | Transfer Tax (Seller) | Recordation Tax (Buyer) |
|---|---|---|---|
| $350,000 | 1.1% | $3,850 | $3,850 |
| $500,000 | 1.45% | $7,250 | $7,250 |
| $700,000 | 1.45% | $10,150 | $10,150 |
| $1,000,000 | 1.45% | $14,500 | $14,500 |
| $1,500,000 | 1.45% | $21,750 | $21,750 |
See Exactly What You'll Net After All Costs
Transfer taxes, commissions, and closing costs add up fast. Use our free seller net sheet calculator to see your estimated proceeds based on your specific situation.
Calculate Your Net Proceeds →Real Estate Agent Commissions
Agent commissions typically represent the single largest cost when selling a home in Washington, DC. The average total commission in DC is approximately 5.50%, which includes both the listing agent and any buyer's agent compensation you choose to offer.
Understanding Commission Structures Post-NAR Settlement
Following the 2024 National Association of Realtors settlement, commission practices have shifted. Sellers now have more flexibility in how they structure agent compensation:
| Commission Model | Listing Fee | On $700K Home | Notes |
|---|---|---|---|
| Traditional (Full Service) | 2.5%–3% | $17,500–$21,000 | Standard representation |
| Reduced Fee (Full Service) | 1.5% | $10,500 | Same service, lower cost |
| Flat Fee MLS | $300–$500 | $300–$500 | Limited service only |
| FSBO (No Agent) | 0% | $0 | No professional support |
💰 Potential Savings with a 1.5% Listing Fee
On a $700,000 DC home, choosing a 1.5% listing fee instead of 2.75% saves you $8,750. On a $1,000,000 home, the savings increase to $12,500. This difference alone can cover your entire transfer tax bill.
What Full-Service Means (Even at 1.5%)
A legitimate full-service listing—regardless of commission rate—should include:
✓ Professional photography
✓ MLS listing & syndication
✓ Pricing strategy & CMA
✓ Showing coordination
✓ Offer negotiation
✓ Contract management
✓ Closing coordination
✓ Marketing materials
Some agents offer reduced listing fees as part of their business model—not because they cut corners, but because they've built efficient systems or focus on volume. When interviewing agents, always ask what services are included and check their track record of sales.
Standard Closing Costs Breakdown
Beyond transfer taxes and commissions, DC sellers face a range of closing costs typically totaling 1%–2% of the sale price. Here's what to expect:
| Closing Cost Item | Typical Cost | Description |
|---|---|---|
| Title Search | $150–$400 | Verifies clear ownership and uncovers liens |
| Owner's Title Insurance | $1,500–$5,000 | Protects buyer from title defects (seller usually pays) |
| Settlement Fee | $400–$800 | Title company's fee for handling closing |
| Escrow Fee | $300–$600 | Managing funds between parties |
| Recording Fees | $50–$150 | Filing deed with Recorder of Deeds |
| Attorney Fee (optional) | $500–$1,500 | Legal review of documents (not required in DC) |
| Wire Transfer Fee | $25–$75 | Sending proceeds to your bank |
| HOA Transfer Fee | $100–$500 | If applicable; updates ownership records |
| HOA Estoppel Letter | $100–$500 | Confirms HOA dues are current |
| Prorated Property Taxes | Varies | Your share through closing date |
| Mortgage Payoff | Balance + fees | Outstanding loan balance plus any payoff fees |
📍 DC Property Tax Note
DC's effective property tax rate is approximately 0.56%—relatively low compared to neighboring Virginia and Maryland. For a $700,000 home, expect annual taxes around $3,900, prorated based on your closing date.
Pre-Sale Preparation Costs
Before your home hits the market, you'll likely incur costs to prepare it for sale. These investments typically pay for themselves through faster sales and higher offers.
| Pre-Sale Item | Typical Cost | ROI Potential |
|---|---|---|
| Pre-listing Home Inspection | $400–$600 | High |
| Professional Cleaning | $200–$500 | High |
| Staging (Occupied) | $500–$1,500 | High |
| Staging (Vacant) | $2,000–$5,000/mo | Medium |
| Interior Paint (Neutral) | $2,000–$6,000 | High |
| Landscaping Touch-Up | $300–$1,500 | High |
| Minor Repairs | $500–$3,000 | High |
| Major Renovations | $10,000+ | Low–Medium |
🏠 Best ROI Improvements for DC Sellers
- Deep cleaning – Costs little, impacts everything
- Fresh neutral paint – Returns 100%+ of investment
- Updated light fixtures – Modern look, low cost
- Landscaping refresh – First impressions matter
- Minor repairs – Eliminates buyer objections
Wondering What Your DC Home Is Worth?
Get a free, no-obligation home value estimate from local DC market experts. We'll provide a comprehensive analysis based on recent comparable sales in your neighborhood.
Get Your Free Home Value →Capital Gains Tax Considerations
If you've owned your DC home for several years, you've likely seen significant appreciation. The good news: most homeowners can exclude substantial gains from taxation when selling their primary residence.
Federal Capital Gains Exclusion
The IRS allows you to exclude up to $250,000 (single filers) or $500,000 (married filing jointly) of capital gains on the sale of your primary residence if you meet these requirements:
✓ Qualification Requirements
- Ownership test: Owned the home for at least 2 of the last 5 years
- Use test: Lived in the home as primary residence for at least 2 of the last 5 years
- Timing test: Haven't used this exclusion on another home sale in the past 2 years
2026 Capital Gains Tax Rates
If your gains exceed the exclusion amount, you'll pay federal capital gains tax. DC also taxes capital gains as ordinary income (4%–10.75%).
| Tax Rate | Single Filer Income | Married Filing Jointly |
|---|---|---|
| 0% | Up to $48,350 | Up to $96,700 |
| 15% | $48,351–$533,400 | $96,701–$600,050 |
| 20% | Over $533,400 | Over $600,050 |
Note: High earners may also owe an additional 3.8% Net Investment Income Tax (NIIT) on gains above $200,000 (single) or $250,000 (married). Consult a tax professional for personalized advice.
Cost Timeline: When You Pay What
Understanding when costs hit helps you plan your cash flow. Here's a typical timeline for a DC home sale:
Pre-Listing Preparation
Cleaning, repairs, staging, photography: $1,000–$5,000 (paid upfront)
Active Marketing Period
No costs (agent covers marketing); carrying costs continue (mortgage, utilities)
Under Contract Period
Possible inspection repair credits negotiated: $0–$10,000
Settlement – All Major Costs Deducted
Transfer tax, commissions, title fees, prorated taxes, mortgage payoff all deducted from proceeds
How to Reduce Your Selling Costs
While some costs are fixed, you have control over several significant expenses. Here are practical strategies DC sellers use to maximize their net proceeds:
1. Negotiate Your Listing Commission
Commission rates are always negotiable. Many experienced agents offer competitive rates—especially for higher-priced homes or sellers who also plan to buy. A 1.5% listing fee versus 2.75% saves $8,750 on a $700,000 home without sacrificing service quality.
2. Shop Title and Settlement Services
You're not obligated to use your agent's or lender's preferred title company. Request quotes from multiple providers—fees can vary by $500–$1,000 for the same services.
3. Time Your Sale Strategically
In DC, spring (April–May) typically brings the highest prices and fastest sales. Selling during peak season may allow you to negotiate less in buyer concessions and attract multiple offers.
4. Price It Right the First Time
Overpriced homes sit on the market, leading to price reductions and extended carrying costs. A well-priced home often sells faster and at a higher final price than one that required multiple reductions.
💵 Potential Savings on a $700,000 Sale
1.5% vs 2.75% listing fee: $8,750
Shop title services: $500–$1,000
Avoid buyer concessions: $5,000–$10,000
Total potential savings: $14,000–$20,000+
Keep More of Your Equity with a 1.5% Listing Fee
Get full-service representation without the full-service price tag. Same professional marketing, pricing strategy, and negotiation—just a smarter commission structure.
Learn About 1.5% Listing →Common Mistakes DC Sellers Make
Avoid these costly errors that trip up many DC homeowners:
❌ Forgetting About Transfer Tax
Many sellers budget only for commissions and forget DC's 1.45% transfer tax. On a $700,000 home, that's over $10,000 you didn't plan for.
❌ Overpricing Based on Zillow Estimates
Automated valuations can be off by 5%–10% in DC's neighborhood-specific market. Overpricing leads to longer market time and ultimately lower prices.
❌ Skipping Pre-Listing Inspection
Surprise inspection issues lead to renegotiation or deal collapse. A $400 pre-listing inspection lets you address problems on your terms.
❌ Ignoring Condo/Co-op-Specific Costs
DC condo sellers face additional fees: HOA transfer fees, estoppel letters, resale document fees. These can add $500–$1,500 to your costs.
❌ Accepting the First Commission Quote
Interview multiple agents and ask about commission structures. Many quality agents offer competitive rates, especially for higher-priced homes.
Alternatives to Traditional Home Sales
Depending on your situation, a traditional market sale may not be the best fit. Here's how different selling methods compare:
| Method | Timeline | Net Proceeds | Best For |
|---|---|---|---|
| Traditional Sale | 45–90 days | Highest | Maximizing sale price |
| Cash Offer/iBuyer | 7–21 days | Lower | Speed, certainty, no repairs |
| FSBO | 60–120+ days | Variable | Experienced sellers, time-flexible |
| Auction | 30–45 days | Unpredictable | Unique properties, quick timeline |
If you need to sell quickly or want to avoid the hassle of showings and repairs, a cash offer option may be worth exploring. You'll typically receive 85%–95% of market value but gain certainty and convenience.
Net Proceeds Examples by Price Point
Here's what DC sellers at different price points can expect to net after all costs, assuming a 1.5% listing fee and 2.5% buyer's agent concession:
| Sale Price | Total Costs (Est.) | Cost % | Net Proceeds* |
|---|---|---|---|
| $400,000 | $26,400 | 6.6% | $373,600 |
| $550,000 | $38,225 | 6.9% | $511,775 |
| $700,000 | $48,550 | 6.9% | $651,450 |
| $900,000 | $62,350 | 6.9% | $837,650 |
| $1,200,000 | $83,100 | 6.9% | $1,116,900 |
*Assumes 1.5% listing fee, 2.5% buyer agent concession, 1.45% transfer tax, and ~$4,000 in other closing costs. Does not include mortgage payoff. Your actual proceeds will vary.
Get Your Personalized Net Sheet
Every home sale is different. Get a customized estimate showing exactly what you'll walk away with after all costs—including your specific mortgage payoff and local fees.
Get Your Net Sheet →Frequently Asked Questions
What is the total cost to sell a house in Washington, DC?
Most DC sellers pay between 7% and 10% of their sale price in total costs. This includes the transfer tax (1.1%–1.45%), agent commissions (negotiable, but averaging 5%–6% total), title and settlement fees (1%–2%), and any buyer concessions or repair credits. On a $700,000 home, expect costs between $49,000 and $70,000.
How much is the transfer tax in Washington, DC?
DC charges a deed transfer tax of 1.1% for properties selling under $400,000 and 1.45% for properties at or above $400,000. The higher rate applies to the entire sale price, not just the amount over $400,000. Sellers customarily pay this tax, though it's negotiable in the contract.
Who pays recordation tax in DC—the buyer or seller?
By default in the GCAAR contract, the buyer pays the recordation tax and the seller pays the transfer tax. Both taxes are calculated at the same rates (1.1% under $400K, 1.45% at $400K+). However, this allocation is negotiable. First-time DC homebuyers may qualify for a reduced recordation rate of 0.725%.
Can I avoid paying capital gains tax when I sell my DC home?
Most homeowners can exclude up to $250,000 (single) or $500,000 (married filing jointly) of capital gains from their primary residence sale if they've owned and lived in the home for at least 2 of the past 5 years. Only gains exceeding this exclusion are subject to federal capital gains tax. DC taxes capital gains as ordinary income at rates from 4% to 10.75%.
What are typical real estate agent commissions in Washington, DC?
The average total commission in DC is approximately 5.50%, typically split between the listing and buyer's agents. However, commission rates are always negotiable. Many sellers work with agents offering reduced listing fees (such as 1.5%) while still receiving full-service representation, potentially saving thousands on a home sale.
Do I need an attorney to sell a house in Washington, DC?
No, DC does not require an attorney for residential real estate transactions. A title company typically handles the settlement process. However, some sellers choose to hire an attorney ($500–$1,500) for complex situations, estate sales, or additional peace of mind during the transaction.
What closing costs does the seller pay in DC?
DC sellers typically pay: the deed transfer tax (1.1%–1.45%), listing agent commission, owner's title insurance, a portion of settlement fees, prorated property taxes, any negotiated repair credits or buyer concessions, and their existing mortgage payoff. Buyers usually handle the recordation tax and their own lender-related fees.
How long does it take to sell a house in Washington, DC?
As of late 2025, DC homes take an average of 21–30 days to go under contract once listed, plus another 30–45 days to close. Total timeline from listing to closing is typically 50–90 days, though this varies by neighborhood, price point, property condition, and market conditions.
Are there additional costs for selling a condo in DC?
Yes, condo sellers face additional HOA-related costs including: HOA transfer fees ($100–$500), estoppel or status letter fees ($100–$500), resale document package fees (varies by building), and potentially move-out fees or deposits. Budget an extra $500–$1,500 for these condo-specific costs.
How do I choose the best real estate agent to sell my DC home?
When selecting an agent, consider their local DC market experience and recent sales in your neighborhood, their commission structure and what services are included, their marketing plan and pricing strategy, communication style and availability, and reviews or references from past clients. Interview at least 2–3 agents before deciding. Jamil Brothers Realty Group, for example, offers a 1.5% listing fee with full-service representation, has helped over 800 buyers and sellers in the DC metro area, and maintains recognition as NVAR Lifetime Top Producers.
Can I negotiate closing costs with the buyer?
Absolutely. While taxes and fees have fixed rates, who pays them is negotiable in your sales contract. In a strong seller's market, you may be able to negotiate fewer concessions. In a buyer's market, you might need to offer closing cost credits to attract competitive offers. Your agent can advise on current market conditions and negotiation strategies.
DC Home Selling Glossary
Deed Transfer Tax
A DC tax paid when property ownership transfers, calculated as a percentage of the sale price (1.1% under $400K, 1.45% at $400K+). Customarily paid by the seller.
Deed Recordation Tax
A DC tax paid to officially record the deed with the Recorder of Deeds, using the same rate structure as the transfer tax. Customarily paid by the buyer.
Seller Concessions
Credits or contributions from the seller to help the buyer with their closing costs, often used as a negotiating tool to close a deal.
Owner's Title Insurance
A one-time insurance policy that protects the buyer from future claims against their ownership. In DC, the seller typically pays for this policy.
Settlement (Closing)
The final step in the home sale where all documents are signed, funds are transferred, and ownership officially changes hands.
Estoppel Letter/Certificate
A document from an HOA confirming the current status of a condo owner's account, including any outstanding dues or special assessments.
Net Proceeds
The amount of money you receive after all selling costs, fees, taxes, and mortgage payoff are deducted from your home's sale price.
GCAAR Contract
The Greater Capital Area Association of Realtors standard sales contract, commonly used for residential transactions in Washington, DC.
Capital Gains Exclusion
An IRS provision allowing homeowners to exclude up to $250,000 (single) or $500,000 (married) of profit from the sale of their primary residence, if they meet ownership and residency requirements.
Next Steps: Sell Your DC Home with Confidence
Selling a home in Washington, DC involves significant costs—but with proper planning and the right strategy, you can minimize expenses and maximize your net proceeds. The key is understanding all costs upfront, negotiating where possible, and working with experienced professionals who know the DC market.
Whether you're selling a rowhouse in Capitol Hill, a condo in Dupont Circle, or a single-family home in Chevy Chase, the fundamentals remain the same: price it right, prepare it well, and partner with an agent who offers both expertise and value.
Ready to Sell Your Washington, DC Home?
Get a clear picture of your selling costs and potential proceeds. We'll provide a personalized net sheet, discuss pricing strategy, and explain how our 1.5% listing fee can save you thousands without sacrificing service.
Planning to buy your next home after selling? Check out our buyer strategy guide or explore homes for sale in the DC metro area.
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