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16 min read Jan 21, 2023

What Are the Seller Closing Costs in Minnesota?

seller closing costs in minnesota

Congratulations! This is the final stretch and you’re very close to selling your Minnesota home. At this point, you will stumble across a long list of sellers closing costs in Minnesota. What do they mean? How much do you need to pay? Who pays closing costs in MN?

The entire closing process can be a bit overwhelming if you’re unfamiliar with it but we’re here to make it easier for you! Let’s look at the process to get a clear idea of what to expect.

Key Takeaways

  • Closing costs are expenses you pay before you sign your property over to the buyer.
  • These fees and taxes are different from the price of the property.
  • Closing costs are the responsibility of both seller and buyer.
  • Minnesota closing is usually handled by an escrow company and/or a title agency.
  • Closing costs in MN can differ from one county to another.


What are Closing Costs in Minnesota?

Closing costs in MN are a collection of fees, charges, and taxes people need to pay before closing on a home. These expenses are different from the price the buyer pays the seller to gain possession of the property. Some of these costs are negotiable but both the buyer and seller are responsible for them.

The median home value in Minnesota is $333,985 and the closing costs are approximately 1%-3.5% of the overall home value, not including the real estate agent fees. The agent fees can be between 5% to 6%. The closing costs for sellers in MN can range between $3,339 to $20,039.

Who Pays Closing Costs in Minnesota?

Sellers and buyers both pay closing costs in MN but this is negotiable. A seller can offer to pay off the expenses as an incentive to buyers, which is a popular strategy in a buyer’s market. Both parties have to bear separate expenses and you can discuss the matter with your real estate agent to know more.

A seller can price the property smartly to cover the seller closing costs as well. These expenses are usually deducted from the proceeds you receive from the sale. You can use the closing costs calculator MN to determine the expected burden before placing your property on the market.

A real estate agent in MN will know who typically pays what for the closing costs in your local area. So, it’s important to seek professional advice. Hiring an experienced agent can help reduce your closing costs.

How Much are Closing Costs in Minnesota?

The closing costs for seller can be anywhere between 6% to 9%. If your MN property is around $333,000, the closing costs can be $19,989 to $29,970. From this, 5%-6% of the costs are real estate agent fees, which can be avoided if you’re an FSBO seller. You can look at the best flat fee companies in Minnesota to list your property on the MLS.

The rest of the fees include things like transfer taxes, mortgage payoff, escrow fees, recording fees, and more! Don’t panic! We will go through all of the expenses carefully so you can make an informed decision.

What are the Typical Closing Costs for Seller in Minnesota?

1. Mortgage Payoff

If you haven’t paid off the mortgage loan on your property, you will need to do so before the property changes hands. Most people pay off the loan once they get the proceeds from the sale. You can take up a new mortgage loan for a new property at the same time if your credit history is healthy. You will need to go through the mortgage application again. When you pay the mortgage, you will also need to pay all of the attached fees like foreclosure fees, interest accrued, and more.

2. Real Estate Broker Commissions

As we have mentioned before, real estate commissions often make up the biggest closing cost percentage, ranging from 5%-6% depending on your location, type of real estate agent, and property value. The commission ranges from 2.5% to 3% for the buyer and seller each. However, in most real estate transactions, the real estate agent’s fees are typically paid by the seller.

» How to Sell a House by Owner in Minnesota: Everything you need to know about how to sell a house by owner and avoid agent fees in MN.

3. City Transfer Taxes or Stamps

Also referred to as deed taxes. The state typically issues transfer taxes to handover your property’s deed to the new owner/buyer. In Minnesota, you are charged 0.33% of your home’s price. Furthermore, Ramsey counties are charged for an extra 0.01 due to the Environmental Response Fund or EFR Tax. The collected fee goes to the county treasurer, which means 97% goes to the state general fund. While the rest of it goes to the administrative expenses.

4. Property Expenses

These are outstanding payments, or prorated property taxes, utility bills, or homeowner’s insurance that are all tied into your property. You may need to pay the buyer a prorated amount of property taxes as well, or the buyer may need to credit you. All outstanding dues must be cleared before the property can be transfered from the buyer to seller.

5. Title Insurance

In many states, the title insurance is the burden of buyers but Minnesota, the situation is a bit different. The seller often pays for the owner’s title insurance, which can be up to $1,000. The title insurance policy provides buyers the protection from any financial loss or unexpected problems with the property. It’s a complete guarantee that the purchaser gets a clear title to the property, free of other legal encumbrances that could threaten the buyer’s interest in the property.

6. Attorney Fees

The average attorney fees in MN is around $290-$300. Minnesota isn’t an attorney state, which means you don’t need to hire an attorney to go through the closing process. However, many sellers still hire a professional to make sure all paperwork like Minnesota real estate disclosures and review contracts are in order and there are no loopholes to exploit. A lawyer can be a good assurance during a high value transaction.

7. Escrow Fees

During a real estate transaction, the property amount is usually kept in escrow account and is released to the seller once the final papers are signed. As Minnesota is an escrow state, this means escrow fees an essential part of the estimated closing costs for seller. An escrow company that handles the transfer of the deposits, documents, funds, and other key items in a closing. The fees are usually $2 per $1000 in the sales price, calculated at the time of closing.

8. Property Survey

Property survey is a thorough assessment of the property to determine its boundaries and plot layout. Home surveys in Minnesota typically cost $450 and they are the seller’s responsibility. It is an additional reassurance for the buyers, ensuring they don’t end up experiencing issues down the line.

9. Home Warranty Fees

Home warranty fees are usually a part of the typical closing costs in MN and is often paid by the seller. Many buyers will ask for this assurance before they are ready to purchase the property. This fee covers the cost of home repairs in case of damage. The average cost can be around $300 or more, varies upon the area, coverage, and the insurance company.

10. Home Inspection

Home inspection is different from home survey. The process involves checking the property for any structural defects, issues like pests, presence of harmful substances like asbestos, etc. A comprehensive real estate inspection in MN ensures the property is safe for occupation. You can choose to resolve the defects identified by the MN home inspector to increase the market value of the house.

The home inspection can cost around $286 to $383 in Minnesota.

» What is the Cost of a Home Inspection in Minnesota: Home inspection is a crucial part of a real estate transaction. Find out more.

11. HOA Dues and Document Fees

Homeowners Association fees and dues need to be cleared before the property can be transferred to the buyer. Clearing the dues are a part of the average closing costs for seller in Minnesota. The costs may include dues, transfer fees, and document fees. You may want to check with the HOA to stay on top of all the expenses.

12. Recording Fees

The ownership and transfer of property is a matter of public record. When you transfer property from the seller to buyer, the records need to be changed to reflect that. Most local governments will charge a fee for this process and the costs vary from one county to another. Check with your local county to get a more accurate estimate on these fees and their impact on average closing costs in MN.

13. Special Assessment Search

A Special Assessment Search is a fee imposed for the betterment of the local environment. This also varies from one county to another so make sure you understand the local costs before you calculate your closing costs in Minnesota.

14. Credits Towards Closing Costs

You can offer to help buyers with closing costs to make the property more attractive, especially if you live in an area where market competition is low. These costs are called closing credits or seller concessions and are paid at closing.

You can also negotiate concessions with homebuyers if a requirement for repairs arises after the inspection. This may help you save some money on the costs of repair.

» How Much are Closing Costs in Minnesota for Buyer: Here is a detailed breakdown of buyer closing costs in Minnesota.

15. Owner’s Title Insurance

Usually, the title insurance rates in Minnesota are based on the property value.

There are two types of title insurance in MN, owner’s and lenders. Primarily, you, the seller, will pay for the owner’s title insurance to protect the buyer against discrepancies relating to the ownership of the property or false documentation. Additionally, title insurance takes care of any back taxes, liens, ownership clauses, etc.

Both parties can negotiate who purchases the owner’s title insurance.

» Who Pays for Owner’s Title Insurance in Minnesota: Find out if owner’s title insurance is a necessary purchase for you.

How to Reduce Closing Costs in Minnesota?

1. Opt for a discount broker or a flat fee realtor.

Compared to traditional brokers who charge 6% of the sales price as commission, discount real estate brokers in Minnesota only charge 3-4% of the sales price for their services. Some low commission brokers offer higher concessions if you let them represent you as buyer’s agents for your next real estate purchase.

2. Choose “For Sale By Owner”(FSBO).

Sellers can save up to 3% commission and cut several costs by opting for “Homes For Sale By Owner Minnesota” services. Houzeo offers Flat Fee MLS packages for FSBO sellers in Illinois that list properties on the MLS and make the selling process easier and smoother. What’s more, if the buyer is unrepresented, with Houzeo, sellers can sell their homes for zero realtor commission charge!

» Flat Fee MLS Listing in Minnesota: Here is our pick of companies that offer Flat Fee MLS services in Minnesota.

3. Research and compare.

You can save more cash on closing costs for sellers, such as the pest inspector or homeowner’s insurance agent, title and escrow companies that are more economical. Browse and ask friends who have already experience hiring one.

4. Negotiate realtor fees.

While traditional real estate brokers in Minnesota usually charge 6% of the sale price as commission, this number is not set in stone. You can negotiate the fee with your realtor.

5. Ask the buyer to cover seller closing costs.

Buyers may agree to cover closing costs for sellers if the market is competitive and fewer houses are on the market. Alternatively, you can raise the listing price to cover full or partial closing costs.

Minnesota Closing Costs Calculator

Wondering how to calculate closing costs for seller? Adding up all the fees and costs is cumbersome, especially if you need to consider the different costs from different counties. That’s why Houzeo has made a handy MN closing cost calculator, which makes the entire process easy and quick.

Our calculator doesn’t just give you a total, but provides you with an itemized list of all expenses. You can study this list to determine what you need to pay and even identify any junk costs to lower your closing cost average.

The calculator is frequently calibrated to ensure it provides the most accurate numbers. You can only know the exact seller cost during closing but our calculator will give you a fairly accurate amount based on the parameters you enter.

» Seller Closing Costs Minnesota Calculator: Check your closing costs now!

How Should I Prepare for My Minnesota Home Closing?

Your closing agent will schedule a date for your closing. Here’s how to prepare for your closing day.

1. Review Your Closing Documents in Advance

Closing documents should generally be available to you in advance of the scheduled closing date. Review these documents at length and understand their provisions. Here are some key documents you’ll likely sign at closing:

  • The HUD-1 or Closing Disclosure: Most Minnesota homes are purchased with a mortgage. If this is the case on your transaction, you’ll get the Closing Disclosure summarizing the costs in detail. If your transaction is all cash, you may get the HUD-1, although this is less common. These documents detail amounts you’re being charged for, your loan payoffs if any, and the net proceeds you will take to the bank. Remember, depending upon how much equity you have in the property, you might be asked to bring a check (or send a wire) on the closing date. Make sure there are no errors in the details you provide and doublecheck everything.
  • The Deed: The deed is the official document that transfers the property from the seller to the buyer. Always read this document thoroughly and verify all important information. You need to check the legal description of the property, deed book, deed book page, and look at your Property Identifying Number or PIN.
  • Statement of Closing Costs: This statement summarizes all the expenses involved in the transaction. This record is essential to ensure all of the expenses are tallied properly.
  • Certificate of Title: Allows you to state that you have the right to sell the property.

2. Ask Questions

If this is your first time selling a house in Minnesota, schedule an appointment with the closing agent before the date of the closing. Prior to that appointment do your research and ask clarifying questions on anything you have doubts about. Don’t hesitate to ask as many questions as you have. High value transactions are always risky and intimidating so you don’t want to make any mistakes.

You can get assistance from your escrow agent, title agent, or hire a real estate attorney for some additional assistance.

3. Bring Two Forms of Official ID, Keys, Garage Remotes, and Final Water Meter Reading

There will likely be a licensed notary involved who’ll require that you swear you are who you say you are. Take a valid driver’s license or passport for ID. Carry a secondary ID as well, just in case. Don’t forget to bring the keys of your property.


Developing an understanding of how much is closing cost in Minnesota is important for you as a seller, as it can greatly impact your profits. Additionally, it is an important factor in calculating the listing price of a house in Nevada.

Now you’re ready! You might’ve heard horror stories of people being blindsided by high seller closing costs in Minnesota – but that’s often the result of not preparing and educating themselves ahead of time. If you are a Houzeo For Sale By Owner Seller in Minnesota, we want you to be one of the most educated home sellers out there. Next step, log on to and list your home for sale by owner. You’ll be in full control of your listing, and save thousands in the process!

» NEED MORE CLARITY? Read these exclusive Houzeo reviews and learn why it is one of the best FSBO sites in America.

Note: This is only a quick guide for all the sellers in Minnesota. Despite most information readily available online, seeking expert advice helps progress the process of selling a home fast.

Frequently Asked Questions

1. Do I have to pay capital gains tax in Minnesota?

Yes, you do need to pay both Federal and State capital gains tax when you sell a house in Minnesota. The tax is same as what you need to pay on other income - that is 5.35, 7.05, 7.85, and 9.85 percent respectively.

2. How do you calculate closing costs for sellers?

Calculating closing costs can get very tricky, which is why using a closing costs calculator is a good choice. Houzeo's closing cost estimator is the perfect tool to get accurate numbers.

3. How long does it take to record a deed in Minnesota?

The processing time varies from one county to another but it usually takes around 1-2 weeks record a deed in Minnesota.

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Additional Resources

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