Home Selling Costs in Kentucky

In Kentucky, listing agent commissions are always negotiable between the seller and the listing agent, rather than being set by law or regulation. Traditionally, commissions have ranged from about 2.5% to 3% of the home’s final sale price, but the actual terms can vary depending on the brokerage, the services offered, and the property itself.

Beyond simply placing a home in the MLS, listing agents often invest significant time and money upfront to position a property for success. This can include professional photography and videography, custom signage, social media campaigns, targeted paid advertising, and other marketing expenses—all absorbed by the agent before a home ever goes under contract. In addition, agents handle countless behind-the-scenes responsibilities such as coordinating showings, fielding inquiries, managing negotiations, and keeping the transaction on track. Because of this, sellers should have a clear conversation with their agent about what services are included, how the commission is structured, and how that value supports their overall goals for selling.

At the closing table, sellers in Kentucky will encounter several fees tied to transferring ownership of the property. These are separate from commissions and reflect the legal and administrative work required to finalize the sale. Common items include:

➤ Owner’s Title Insurance Policy – In Kentucky, this is most often the buyer’s responsibility, as it protects the new owner against potential title defects or claims. However, like most fees in a real estate transaction, it can be negotiable and occasionally requested as a seller concession during negotiations.

➤ Settlement/Closing Fee – Charged by the title company or closing attorney for facilitating the closing, this fee generally ranges from $300 to $600. Depending on the agreement or local custom, it may be split between buyer and seller, though sellers should be prepared for their portion.

➤ Deed Preparation – Since the seller is the party conveying ownership, the deed must be prepared, typically by the title company or a closing attorney. The cost usually falls between $125 and $200, and it is almost always a seller-paid expense.

Home inspections are a standard part of nearly every real estate transaction in Kentucky, and sellers should be prepared for negotiations that result from the findings. While buyers order and pay for the inspections themselves, the outcomes can directly impact what the seller ultimately nets at closing.

➤ General Home Inspection – Most buyers request a full home inspection after their offer is accepted. If issues are discovered—such as problems with the roof, HVAC system, plumbing, or electrical—the buyer may ask the seller to make repairs before closing.

➤ Repair Requests vs. Concessions – Instead of making repairs directly, sellers often choose to offer a credit or concession at closing. This allows the buyer to handle the repair on their own after taking ownership, but it still reduces the seller’s net proceeds. Negotiations in this stage are common and can range from minor adjustments to significant concessions depending on the condition of the home.

➤ Specialized Inspections – In addition to the general inspection, certain types of properties or counties may require pest, radon, septic, or well inspections. These can uncover additional repair needs or health/safety concerns that must be addressed prior to closing.

➤ Strategic Considerations – Sellers should keep in mind that while these requests can feel costly or frustrating, handling inspection issues effectively is often critical to keeping a deal together. In some cases, addressing major repairs up front—or offering fair concessions—can actually save time and prevent a contract from falling through.

While sellers have never been required to offer compensation to a buyer’s agent, it has long been a somewhat foggy area of industry practice. However, the recent national rule changes now make transparency in buyer agent compensation a requirement across the industry—and we see this as a positive step.

At Williams Elite Realty, we have always upheld this standard. Long before the NAR mandate changes, our brokerage made it a priority to be upfront about costs, expectations, and how compensation is handled. Although sellers are not required to offer compensation—and can no longer display it in the MLS if they do—the reality is that many buyers will request their agent’s fee be covered as part of their purchase offer, not only as a negotiating strategy but often out of necessity, since lacking those extra funds upfront could prevent them from qualifying or completing the purchase. That’s why sellers should carefully consider compensation when setting their price and during negotiations. This is where Williams Elite Realty excels: guiding you through creative, ethical negotiation strategies and ensuring you have all the information and options to make the best decision for your desired outcome.

We fully support these transparency measures because they reflect our core commitment: ensuring our clients understand the true costs of selling and what to expect at every stage of the process.

In addition to commissions and title-related expenses, sellers in Kentucky are also responsible for certain government-mandated fees and taxes that come with transferring ownership of a property. These are generally modest compared to the overall transaction, but they are important to factor into your net proceeds:

➤ Kentucky Transfer (Deed) Tax – The state imposes a deed transfer tax of $0.50 per $500 of property value (0.1% of the purchase price). This fee is customarily split evenly between buyer and seller, though the division can be negotiated. For example, on a $200,000 home, the total transfer tax would be $200, with the seller typically paying $100.

➤ Recording Fees – County clerk offices charge a fee to record official documents such as the deed, mortgage release, or other legal instruments related to the transaction. The cost usually ranges from $50 to $75 per document, but it can vary by county. These fees ensure the property transfer is properly documented in public records.

➤ Mortgage Release Fee – If the seller has a mortgage on the property, the lender will require a formal release to be filed once the loan is paid off at closing. The cost of preparing and recording this release typically falls between $46 and $80, depending on the lender and county.

➤ Property Tax Prorations – Property taxes are divided between buyer and seller based on the closing date. The seller is responsible for their share from January 1 through the day of closing, while the buyer covers the remainder of the year. Depending on the timing of the sale and whether taxes have already been paid, this may result in a credit to the buyer or a reimbursement to the seller.