United States – Selling Property

What are the steps involved in selling property yourself in the United States?

Selling a home independently in the United States — commonly referred to as “For Sale By Owner” or FSBO — is lawful in every state, and no statute compels you to retain a real estate agent. That said, the transaction involves a sequence of legally and administratively meaningful steps that all sellers must handle with care, whether they act alone or with professional support. Unlike certain other markets where a notary oversees most of the process, US sales are document-heavy and typically coordinated by a title company or settlement agent.

The starting point is assembling all relevant paperwork. A seller’s disclosure form is required in the vast majority of states — though the precise scope of that requirement differs by jurisdiction — and it informs prospective buyers of any material defects or known issues with the property. You should also gather records relating to any outstanding mortgage, homeowners association (HOA) documents, property tax bills, utility accounts, and permits or warranties connected to any work previously completed on the home.

Establishing a competitive asking price comes next. Overpricing can deter buyers and leave your listing sitting idle, while underpricing means leaving value behind. To calibrate your figure from the outset, review local real estate comparables — recently closed sales of similar homes in your area offer a reliable benchmark for where the market currently sits.

The following outlines the step-by-step sequence for completing an FSBO sale in the United States:

1. Gather documents: Assemble the seller’s disclosure form, title deed, mortgage statements, HOA records, property tax history, and any existing inspection reports. Gaps in documentation can cause costly delays once the transaction is underway.
2. Price the property: Study comparable recent sales (“comps”) in your neighbourhood. Engaging an independent appraiser for an objective valuation is a sensible additional step.
3. Prepare and market the property: Stage the home, commission professional photographs, and produce an appealing listing. According to the National Association of Realtors (NAR), 100% of homebuyers use the internet when searching for a home, and 43% cited browsing online listings as the very first action they took. FSBO sellers typically advertise on platforms such as Zillow, Trulia, or specialist FSBO websites.
4. List on the MLS (optional but recommended): Placing your property on the Multiple Listing Service (MLS) greatly expands its visibility to buyers and agents. FSBO sellers can gain access by paying a flat fee to a licensed broker — a service widely offered by specialist listing platforms.
5. Host showings and open houses: Organise and manage viewings for interested buyers on your own schedule.
6. Review and negotiate offers: Written offers will arrive stating the price the buyer is prepared to pay — often somewhat below your asking price. Counter-offers and back-and-forth negotiation are entirely normal.
7. Complete required disclosures: Fill out the seller’s disclosure form honestly and thoroughly. Transparency about known defects is not merely good practice — concealing a material issue can cause the sale to collapse or expose you to litigation afterwards.
8. Open escrow and engage a title company: Once you accept an offer, a title company or settlement agent takes charge of the escrow process, carries out a title search, and ensures the ownership transfer is correctly executed and recorded.
9. Facilitate the buyer’s inspection: Buyers will typically engage a licensed home inspector. Their report may prompt renegotiation of the price or requests for remedial work before closing.
10. Close the transaction: Execute the closing documents, settle any applicable taxes and fees, and hand over the title deed. The title company or settlement agent distributes the funds. More than 40 states now permit fully remote digital notarisations, allowing sellers to finalise paperwork entirely online through a secure video platform.

Foreign sellers face one additional mandatory requirement: obtaining a US Taxpayer Identification Number (TIN). The IRS uses this number when processing tax filings, and it is required regardless of whether the seller is a resident alien or a non-resident alien. Applications can be submitted using IRS Form W-7 (for an Individual Taxpayer Identification Number, or ITIN) through the IRS website.

Do most sellers in the United States use an estate agent, or is private selling common?

The clear majority of US sellers choose to work with a licensed real estate professional — referred to as a “Realtor” when they hold NAR membership. Selling privately is legally permissible but represents a small and shrinking slice of the market, having lost ground steadily over several decades.

FSBO sales accounted for just 5% of all home sales according to the NAR’s 2025 Profile of Home Buyers and Sellers, while a record 91% of sellers completed their transaction with the assistance of a real estate agent. This stands in sharp contrast to markets such as Australia, where discount-agent models and private treaty arrangements are more widespread, and where the greater standardisation of sale contracts by state law societies makes unassisted selling more straightforward.

The most frequently cited obstacles for FSBO sellers are setting the right price (17%), selling within their desired timeframe (13%), and managing the paperwork burden (10%). The combined complexity of disclosure obligations, negotiation, escrow, and title procedures makes going it alone genuinely demanding — especially for anyone unfamiliar with how the US system operates.

There is also a financial dimension to consider. Over the past year, the median sale price for an FSBO transaction was $360,000, compared with $425,000 for agent-assisted sales, according to NAR data — an 18% differential in favour of professionally listed homes. While part of this gap reflects the tendency for FSBO homes to be concentrated in lower-cost rural areas, the price advantage of using an agent is real and worth weighing against commission costs.

Before August 2024, it was standard industry practice for sellers to fund both the listing agent’s commission and the buyer’s agent commission. Following a landmark NAR legal settlement, sellers can no longer advertise the buyer’s agent commission within their listing; that fee is now negotiated directly between the buyer and their own agent. In practice, however, many sellers continue to offer buyer-agent concessions to remain competitive, meaning the overall dynamic has shifted more in structure than in outcome.

In 2024, 38% of FSBO sellers already had an identified buyer before putting their home on the market. This pattern suggests that private selling tends to work best in situations involving a pre-existing relationship between buyer and seller — a family sale, a transfer to a neighbour, or a private arrangement between acquaintances — rather than as a broad market strategy. For overseas sellers in particular, a knowledgeable local agent adds genuine value: they can position your listing effectively, advise on optimal market timing, and connect you with the attorneys and title companies essential to completing the transaction. In every US state, real estate agents must hold a valid licence — verify credentials before engaging anyone, using the National Association of Realtors directory.

How does capital gains tax work when selling property in the United States?

Capital gains tax on US real estate is administered by the Internal Revenue Service (IRS). The amount owed depends on how long you held the property, how you used it, and your total taxable income for the year. The rules diverge considerably depending on whether the property is your primary residence or an investment asset, and non-resident foreign sellers face a further distinct layer of federal obligations.

For 2018–2025, long-term capital gains — arising from property held for more than one year — are taxed at rates of 0%, 15%, or 20%, depending on the seller’s income bracket. Short-term gains, on property disposed of within one year of acquisition, are taxed at ordinary income rates, which can be substantially higher. Always verify the current applicable brackets directly with the IRS Tax Topic 701 before proceeding with your sale.

A further 3.8% Net Investment Income Tax (NIIT) may apply once modified adjusted gross income exceeds $200,000 (single filers or heads of household) or $250,000 (married filing jointly). Sellers of higher-value properties should factor this surcharge into their planning from the outset.

Primary residence exclusion: Under Section 121 of the Internal Revenue Code, qualifying sellers may exclude up to $250,000 of capital gain from the sale of their principal home ($500,000 for married couples filing jointly). To be eligible, you must generally have owned and occupied the property as your main residence for at least two of the five years immediately preceding the sale. This is among the most significant tax reliefs available to US resident sellers. It differs notably from the UK’s Principal Private Residence Relief, which operates on a proportional basis linked to the duration of occupation; the US exclusion instead functions as an all-or-nothing threshold governed by specific ownership and use criteria.

Investment and rental properties: Where a property has been held for more than one year and was never your primary residence, long-term capital gains tax will apply to any profit realised on the sale. For rental properties, depreciation recapture rules add a further consideration — any depreciation claimed against the property during the period of ownership may be subject to tax at a rate of up to 25% at the point of disposal.

Rules for non-resident foreign sellers: Non-residents are subject to an additional and highly significant regime: the Foreign Investment in Real Property Tax Act, or FIRPTA. The sale of US real estate by a non-resident alien is not simply a standard closing. FIRPTA establishes a withholding mechanism designed to ensure that the IRS can collect tax on gains from US real property interests before the foreign seller departs the country.

Under FIRPTA, the buyer is generally obliged to withhold 15% of the total amount realised by the seller and remit it directly to the IRS. This rate is reduced to 10% where the property is being purchased for use as the buyer’s primary residence and the sale price does not exceed $1 million. Crucially, FIRPTA withholding is calculated on the gross proceeds — not on the net gain — meaning it frequently exceeds the seller’s actual tax liability. The seller can recover any excess by filing a US tax return and claiming the resulting refund.

The primary residence exclusion is generally not available to non-residents unless they satisfy specific presence tests and usage criteria. Foreign sellers should consult a US tax professional with FIRPTA expertise well before listing their property. The IRS provides detailed guidance at irs.gov/firpta.

Are there other taxes or costs involved in selling property in the United States?

Beyond capital gains obligations, sellers in the United States face several additional categories of cost at closing. These vary considerably depending on the state, county, or municipality in which the property is situated, so obtaining a location-specific breakdown from your title company, settlement agent, or real estate attorney before proceeding is essential.

Real estate agent commission: If you engage a listing agent, their commission will typically be around 2.5–3% of the final sale price (as of 2025). Since August 2024, sellers are no longer permitted to advertise the buyer’s agent commission within their listing — that fee is negotiated directly between the buyer and their representative. In practice, however, many sellers continue to offer buyer-agent concessions as a competitive incentive to attract offers.

Transfer taxes: Real estate transfer taxes generally run in the range of 1–3% of the sale price (as of 2025), though the figure varies dramatically by jurisdiction. Certain states, including Texas, levy no state-level transfer tax on real property, while others — New York being a notable example — impose multi-tiered charges. Consult your county recorder or local tax authority for the precise rate applicable to your property’s location.

Title insurance and escrow fees: Sellers are normally required to provide the buyer with an owner’s title insurance policy. Escrow and settlement fees also form part of the closing costs, typically shared between buyer and seller, though the customary split varies from state to state. Title insurance premiums depend on the transaction value but generally fall between 0.5% and 1% of the sale price.

Property taxes (pro-rated): Property taxes are ordinarily apportioned at closing to reflect each party’s period of ownership. In states where taxes are paid in arrears — which is common across much of the country — the seller provides the buyer with a credit covering the accrued but unpaid amount.

Attorney fees: Certain states, particularly in the northeast — including New York and Massachusetts — require a licensed real estate attorney to be present at closing. Legal fees for this service typically range from a few hundred dollars to well over a thousand, depending on the complexity of the transaction.

HOA fees and outstanding liens: Where the property forms part of a homeowners association, any overdue HOA charges must be cleared at closing. Title companies routinely conduct a lien search to identify any outstanding financial claims against the property before funds are disbursed.

Home warranty and pre-sale inspection costs: Some sellers opt to include a home warranty as a buyer incentive. Commissioning a pre-sale home inspection — while not obligatory — can surface issues before the buyer’s inspector does, reducing the likelihood of late-stage renegotiations that delay or derail the sale.

In aggregate, total seller closing costs in the US — excluding agent commission — typically represent 1–3% of the sale price, although this figure can climb higher in states with substantial transfer tax obligations. Request a preliminary closing cost estimate (often called a “net sheet”) from your settlement agent or title company at the earliest opportunity.

What legal requirements must sellers meet in the United States?

All sellers in the United States — irrespective of their nationality — are subject to certain legal obligations throughout the sale process. Failure to comply can result in a collapsed transaction, civil liability, or formal legal action. Foreign sellers additionally face a distinct set of federal requirements that demand careful attention.

Seller’s disclosure: Sellers are required to disclose all known defects and material issues affecting the property. Commonly reported matters include structural problems, appliance faults, plumbing deficiencies, and environmental hazards. Disclosure requirements are determined at the state level and vary in both scope and the level of detail demanded. Most states make standardised disclosure forms available through real estate agents or attorneys. Deliberately withholding knowledge of a known defect exposes the seller to post-sale litigation.

Lead-based paint disclosure: Federal law mandates that sellers of homes constructed before 1978 disclose any known information about the presence of lead-based paint or associated hazards. This obligation applies uniformly across all states, and buyers must receive an EPA-approved informational pamphlet as part of the process. While analogous in spirit to energy performance documentation requirements across Europe, this disclosure is specifically targeted at a historical environmental health hazard rather than energy efficiency.

Title and deed requirements: Prior to closing, the title company undertakes a comprehensive title search to verify that the seller holds clear, marketable title — that is, free from outstanding liens, unresolved disputes, or encumbrances. Any problems identified must be remedied before the transfer can proceed. Following closing, the title deed — typically a warranty deed or quitclaim deed — is formally recorded with the county recorder’s office to establish the new ownership on the public record.

Foreign seller requirements: A foreign national cannot complete a property sale in the US without a valid Taxpayer Identification Number (TIN). Applications can be made directly through the IRS website. Non-resident alien sellers must also understand their FIRPTA obligations — including the standard 15% withholding that applies and the option of applying for a reduced withholding certificate (IRS Form 8288-B) if their actual tax liability is projected to fall below the standard rate. The IRS typically requires at least 90 days to process such applications, so sellers who intend to pursue this route should begin the process well ahead of listing.

No federal energy performance certificate requirement: The United States has no federal equivalent to the Energy Performance Certificate (EPC) that is mandatory before listing a property in the European Union. A small number of states and municipalities have introduced voluntary or compulsory energy disclosure measures, but these remain the exception rather than the norm at a national level.

State-specific requirements: Individual states may impose further legal obligations on sellers beyond those described above. California, for instance, has among the most extensive disclosure regimes of any US state. Always seek guidance from a licensed real estate attorney practising in the state where your property is located to confirm full compliance. The National Association of Realtors and state bar associations can assist in identifying suitably qualified professionals.

How does the exchange and completion process work in the United States?

The US property closing process is meaningfully different from the systems used in countries such as the UK — where solicitors manage contracts and exchange and completion are two legally distinct events — or France and Spain, where a notary occupies a central supervisory role. In the United States, the transaction is typically administered by a neutral third party, either a title company or an escrow agent, rather than by a lawyer (though attorneys must be involved in certain states).

When a buyer’s offer is accepted, the parties execute a Purchase and Sale Agreement — a legally binding contract specifying the agreed price, any contingencies (such as mortgage approval and satisfactory home inspection results), and the anticipated closing date. Unlike in the UK system, there is no separate “exchange of contracts” event; the executed purchase agreement itself constitutes the binding contract, subject to the conditions the parties have negotiated.

Escrow period: The interval between signing the purchase agreement and reaching closing — known as the escrow period — typically spans 30 to 45 days, though the full journey from initial listing to final completion tends to be longer. The ICE Mortgage Technology Origination Report for Q4 2024 records an average closing time of 42 days. During escrow, the buyer completes their inspection, finalises their financing, and the title company conducts its title search. End-to-end, the full selling process typically takes between 60 and 90 days, with complications capable of extending this further.

The closing: At the closing — referred to as “settlement” in some states — all parties execute the required legal documents. The settlement process encompasses every final step necessary to complete the transfer: organising payment of the purchase balance, settling any outstanding taxes and fees, and arranging the disbursement of funds. The title company or escrow agent pays the seller the net proceeds, discharges any remaining mortgage on the property, and arranges for the new deed to be recorded with the county recorder.

Role of professionals: The title company or escrow agent coordinates the closing and holds all funds in a neutral account until conditions are satisfied. In certain states — particularly in the eastern United States — a real estate attorney is required to conduct the closing in place of a title company. A notary public may be called upon to witness signatures, but the notarial function in the US is administrative in nature — witnessing and authenticating documents — rather than the substantive legal supervisory role that notaries perform in civil law jurisdictions such as France, Germany, or Spain.

Remote and digital closings: More than 40 US states now permit fully digital notarisations, enabling sellers to execute closing paperwork entirely online through a secure video platform. This option is particularly valuable for foreign sellers who are abroad at the time of sale, though you should confirm availability with your title company and settlement agent in advance.

Is property exchange or part-exchange an option in the United States?

Direct property exchange — trading one property for another rather than conducting a conventional cash sale — is a recognised concept under US law, though it is rarely encountered in the residential market. Two main mechanisms are worth understanding: direct swap arrangements and the Section 1031 like-kind exchange.

Direct property exchange: When two parties agree to swap their respective properties, the IRS treats the arrangement as though each owner has sold their home and simultaneously purchased the other. Standard capital gains tax rules therefore apply to any gain realised on the property surrendered. Residential swaps are uncommon in practice: they require both parties to want precisely what the other is offering, they present complex valuation challenges, and they are difficult to engineer without professional intermediary support.

Section 1031 like-kind exchange: A far more widely utilised mechanism among property investors is the Section 1031 like-kind exchange, which permits the deferral of capital gains tax when one investment property is sold and the proceeds are reinvested in another qualifying “like-kind” investment property within a strictly defined window. The rules are precise: the replacement property must be identified within 45 days of the sale, and the acquisition must be completed within 180 days. A qualified intermediary (QI) must hold the sale proceeds throughout — under no circumstances may funds pass through the seller’s own hands.

Section 1031 is not available for primary residences and applies exclusively to investment and business properties. It is a powerful tax-deferral tool, but is subject to detailed IRS requirements. Foreign sellers should also be aware that FIRPTA withholding applies even when a sale forms part of a like-kind exchange. The practical difficulty for non-residents is that funds withheld under FIRPTA may not be released in sufficient time to fund the replacement property purchase within the 180-day deadline. The IRS and qualified US tax attorneys with international real estate experience can provide detailed guidance on navigating this challenge.

Part-exchange with developers: Some US property developers offer part-exchange programmes under which a buyer’s existing home is accepted as partial consideration against the purchase of a new-build property. These arrangements are negotiated directly with the developer and operate outside any federal regulatory framework. They are most frequently encountered in new-build developments across suburban and Sun Belt markets, and are rarely extended to foreign sellers unless they are simultaneously purchasing within the same development.

What should foreign sellers know about repatriating sale proceeds from the United States?

The United States imposes no currency controls, meaning there is no legal bar to transferring property sale proceeds abroad once the transaction has closed and all US tax obligations have been discharged. However, foreign sellers must be aware of important reporting requirements and practical considerations before moving significant sums across borders.

FIRPTA withholding and tax return filing: The most substantial financial factor at the point of closing is FIRPTA. If you are a foreign person selling US real estate, the buyer will typically withhold a portion of your proceeds and remit it to the IRS. The rate of withholding ranges from 0% to 15% depending on the sale price and the buyer’s intended use of the property, and it is credited against any capital gains tax ultimately owed. You will be required to file a US tax return following the sale, and where the amount withheld exceeds your actual liability, the difference will be returned to you as a refund.

The timeline for receiving such a refund varies, but most sellers should plan for a wait of six to twelve months from the date of a complete and accurate filing. Delays caused by missing ITINs, incomplete documentation, or discrepancies in reported figures can extend this further. Engaging a preparer who handles FIRPTA cases routinely can meaningfully accelerate the process and reduce correspondence with the IRS. The practical implication is that a meaningful portion of your sale proceeds may remain with the IRS for an extended period — factor this into your financial planning before closing.

FinCEN reporting and bank reporting requirements: Large international wire transfers originating in the US are subject to the reporting framework established under the Bank Secrecy Act. US financial institutions are required to file Currency Transaction Reports (CTRs) for cash transactions exceeding $10,000, and may file Suspicious Activity Reports (SARs) where unusual patterns are detected. These are compliance-driven reporting obligations at the bank level and do not represent a restriction on your ability to transfer funds — but being open with your bank about the provenance of the proceeds will help avoid unnecessary delays or queries.

Tax treaties and double taxation: Tax treaties commonly affirm that the country in which the real estate is located holds the primary right to tax gains arising from its sale. Where you are a US tax resident, many treaties contain a “saving clause” under which the US retains the right to tax its residents — relief from double taxation is therefore typically delivered through a foreign tax credit mechanism rather than through a blanket US exemption. For non-residents, the provisions of the applicable treaty between the US and your country of tax residence may reduce your overall US tax liability. Seek professional advice from specialists qualified in both jurisdictions before proceeding.

Currency transfer considerations: Once your proceeds are released, you will likely need to convert US dollars into another currency. Exchange rate movements and transfer fees can erode the real value of your proceeds considerably on large sums. Comparing specialist international money transfer providers against your bank’s quoted rate is worthwhile, as banks typically offer less competitive exchange rates for currency conversion. Ensure that any provider you use holds the appropriate regulatory authorisations in the relevant jurisdictions.

For authoritative guidance, consult the IRS International Taxpayers page and engage independent advice from a cross-border tax specialist and a regulated currency transfer provider before finalising your sale.

Frequently asked questions about selling property in the United States

How long does the full process take from listing to completion?

The end-to-end process typically runs between 60 and 90 days, though complications can push this figure higher. The time your home spends on the market before an offer is accepted will vary with local demand; in 2025, real estate analysts forecast an average of 35–45 days on market nationally, based on NAR data. Once an offer is accepted, the escrow and closing stage generally takes a further 30–45 days. Buyer financing, title complications, and local market conditions can each influence the overall timeline.

What happens if the buyer pulls out of the sale?

In most US purchase agreements, the buyer submits an earnest money deposit — typically 1–3% of the purchase price — upon signing. If the buyer withdraws without invoking a valid contractual contingency, such as a failed mortgage approval or an unsatisfactory inspection outcome, the seller may be entitled to retain the deposit as liquidated damages. Where the withdrawal is covered by a contingency provision in the contract, the deposit is ordinarily returned to the buyer in full. The precise consequences hinge on the wording of the purchase agreement and the law of the state in which the property is situated — your real estate attorney can advise on the specifics.

Can I sell my US property remotely without being present?

Yes. More than 40 states now permit fully digital notarisations, allowing sellers to complete all closing paperwork online through a secure video platform. Sellers who are outside the United States at the time of closing may alternatively grant a power of attorney to a trusted representative, authorising that person to execute documents on their behalf. Any such power of attorney must be properly drafted, executed, and notarised in a form that satisfies the requirements of the state in which the property is located. Your title company or real estate attorney can clarify the applicable formalities.

Do I need a US lawyer to sell my property?

The answer depends on the state. In parts of the northeast — including New York, Massachusetts, and Connecticut — a licensed real estate attorney is legally required to be present at closing. In the majority of other states, a title company or escrow agent can manage the process without a mandatory attorney involvement. Regardless of location, however, foreign sellers are strongly advised to engage a US attorney with experience in international real estate transactions and FIRPTA compliance, given the additional layers of complexity that arise when the seller is a non-resident.

Will I owe tax in both the US and my home country when I sell?

Tax treaties generally grant the country where the property is situated the primary right to tax gains from its sale. If you are a US tax resident, many treaties include a saving clause preserving the US’s right to tax you regardless — relief is usually structured through a foreign tax credit rather than a full exemption at source. Many jurisdictions allow residents to offset US taxes already paid against any domestic tax liability arising on the same gain, but the details vary significantly across treaties and individual circumstances. Consult a tax adviser with qualifications in both the US and your country of residence before proceeding.

Can I reduce or avoid FIRPTA withholding as a foreign seller?

Certain exemptions to FIRPTA withholding exist. No withholding is required, for example, where the buyer intends to use the property as their primary residence and the sale price is $300,000 or less. A commonly pursued approach is for the seller to apply to the IRS for a withholding certificate — which can establish either that the sale is exempt from withholding altogether, or that a reduced rate is warranted because the seller’s underlying tax liability will be lower than the 15% standard. This application is made using IRS Form 8288-B and should be submitted well before closing, as the IRS typically takes a minimum of 90 days to process it.

Is there a spring or autumn “best time” to sell in the United States?

Broadly speaking, spring and autumn represent the most active selling seasons across the country. The spring window — roughly March through May — generally attracts the highest volume of buyer activity at a national level. That said, the US housing market is far from uniform: Sun Belt and Mountain West markets can follow quite different seasonal rhythms from coastal urban centres or midwest cities. Reviewing current local conditions with a licensed agent before committing to a listing date is the most reliable way to time your sale effectively.

What is a title company and why is it involved in the sale?

A title company fulfils two primary functions in a US property transaction: it conducts a title search to confirm that the seller holds unencumbered legal ownership — free from outstanding liens, judgements, or competing claims — and it issues title insurance to protect the buyer (and, where applicable, the lender) against any future challenges to that ownership. The title company typically also serves as the escrow agent, holding all funds and documents in a neutral account during the transaction and overseeing the final distribution of proceeds at closing. In broad terms, the title company performs a role analogous to that of a conveyancing solicitor in the UK, or the notary central to property sales in France and Spain — though its function is primarily administrative and risk-management-oriented rather than one of independent legal advice.