By Marc Dosik, a real estate broker licensed in DC, Maryland, and Virginia (Fed City Team at Real Broker LLC), with an office at 843 Upshur Street NW in Petworth, Washington DC. The short answer: an Olney seller's cash at settlement starts with the sale price, then subtracts the seller's contractually allocated share of Maryland and Montgomery County transfer and recordation taxes, negotiated brokerage compensation, mortgage and credit-line payoffs, settlement charges, tax and HOA prorations, association balances or fees, seller credits, and any other property-specific obligations. Maryland generally presumes that the buyer and seller split State transfer tax, local transfer tax, and recordation tax equally unless the contract or another law changes the result. A qualifying first-time Maryland buyer is an important exception that can shift much more of those taxes to the seller. Using the assumptions explained below, the seller's illustrative half of the three deed taxes is $7,840 at a $650,000 sale, $10,524 at $800,000, and $14,180 at $1 million. Those figures are only the tax line. They do not include brokerage compensation, loan payoff, association charges, credits, repairs, or settlement fees. Maryland statutes, Montgomery County rates, and association-document fee limits were last checked September 2, 2026. This guide provides general educational information, not legal, tax, title, or settlement advice. Your ratified contract and title company's final figures control your transaction.

What usually reduces an Olney seller's proceeds?

Not every sale has every charge, but a useful seller net sheet should test each of these lines:

Line item	What determines the amount
State and county deed taxes	Sale price, buyer occupancy, first-time-buyer status, exemptions, contract allocation, and $500 rounding
Brokerage compensation	The signed brokerage agreement and any compensation terms in the transaction
Mortgage and home-equity payoff	Written payoff statements through the expected closing date
Title and settlement charges	The title company's written seller quote and the contract
Property tax and HOA prorations	The actual bills, dues, closing date, and contract
HOA or condominium charges	Resale-package charge, permitted rush or inspection fees, unpaid dues, transfer charges, and special assessments
Seller credits	The ratified contract and later written amendments
Repair or preparation reimbursement	The signed agreement, approved invoices, and settlement instructions
Other title obligations	Liens, judgments, water or utility charges, estate documents, or other property-specific items

The mortgage payoff is usually the largest subtraction from the closing proceeds, but it is repayment of the seller's existing debt rather than a tax or fee created by the sale. That distinction matters when comparing cash at settlement with the cost of selling.

How do Maryland and Montgomery County deed taxes work?

An ordinary Olney sale can involve three separate deed-tax calculations:

Charge	Current rule for the examples in this guide	Default buyer and seller allocation
Maryland State transfer tax	0.5% of the consideration	Split equally unless another rule applies
Montgomery County transfer tax	1% for an ordinary residential sale of $70,000 or more	Split equally unless the contract or another rule changes it
Montgomery County recordation tax	Progressive rates per $500 or fraction	Split equally unless the contract or another rule changes it

The Maryland allocation statute creates the general 50-50 presumption. The contract can allocate charges differently, and the first-time-buyer rule discussed below is a major exception. This is why a percentage copied from another seller's settlement statement is not a reliable estimate for your home. The Maryland State transfer-tax statute sets the ordinary State rate at 0.5%. The Montgomery County transfer-tax code sets a 1% local rate for the price range of a typical Olney home.

How is Montgomery County recordation tax calculated?

Montgomery County applies progressive recordation-tax rates to each $500 of consideration, or fraction of $500. The current combined marginal rates are:

Portion of consideration	Combined recordation-tax rate
Through $500,000	$4.45 per $500 or fraction
$500,000.01 through $600,000	$6.75 per $500 or fraction
$600,000.01 through $750,000	$10.20 per $500 or fraction
$750,000.01 through $1,000,000	$10.78 per $500 or fraction
More than $1,000,000	$11.35 per $500 or fraction

These are marginal bands, not one rate applied to the entire price. Montgomery County publishes both the current rate components and worked calculation examples. When an individual buyer intends to use the property as a principal residence and satisfies the occupancy and affidavit requirements, the first $100,000 of consideration can be exempt from Montgomery County recordation tax. That exemption is not limited to first-time buyers. The title company should confirm that the buyer qualifies before using it in a seller net sheet.

What do the deed taxes look like at $650,000, $800,000, and $1 million?

The table below assumes an individual buyer will occupy the property as a principal residence, the $100,000 recordation-tax exemption applies, the buyer is not using the first-time Maryland buyer exception, and the contract follows the general 50-50 allocation. Each sale price is an exact multiple of $500.

Sale price	Recordation tax	County transfer tax	State transfer tax	All three taxes	Illustrative seller half	Price less seller's tax share
$650,000	$5,930	$6,500	$3,250	$15,680	$7,840	$642,160
$800,000	$9,048	$8,000	$4,000	$21,048	$10,524	$789,476
$1,000,000	$13,360	$10,000	$5,000	$28,360	$14,180	$985,820

These are educational calculations, not property-specific estimates or promises of net proceeds. If the principal-residence recordation exemption does not apply, the total recordation tax in each example rises by $890. Under a 50-50 allocation, that would add $445 to the seller's share. A price that is not an exact multiple of $500 also requires the statutory fraction-of-$500 rounding.

What changes when the buyer is a first-time Maryland home buyer?

For a qualifying first-time Maryland buyer purchasing an improved home as a principal residence, the State transfer-tax rate falls from 0.5% to 0.25%, and the seller pays that State tax. Maryland's default rule also puts all local transfer tax and recordation tax on the seller in that situation unless the contract expressly reallocates those two local charges. If all of those first-time-buyer conditions apply, the principal-residence recordation exemption applies, and the contract does not reallocate the county transfer or recordation taxes, the illustrative seller deed-tax share becomes:

Sale price	Recordation tax paid by seller	County transfer tax paid by seller	Reduced State transfer tax paid by seller	Illustrative seller tax share
$650,000	$5,930	$6,500	$1,625	$14,055
$800,000	$9,048	$8,000	$2,000	$19,048
$1,000,000	$13,360	$10,000	$2,500	$25,860

The first-time-buyer definition and required sworn statement are specific. If there is more than one buyer, the qualification rules also matter. Ask the title company to verify the affidavits and allocation before treating an offer's headline price as its true net value.

How should brokerage compensation appear on the net sheet?

Use the compensation stated in the signed brokerage agreement and any applicable transaction documents. There is no universal or government-set commission rate. The seller net sheet should show the actual negotiated amount or formula rather than a generic percentage borrowed from another transaction. If an offer includes seller-paid buyer concessions or other compensation terms, show those on separate lines. Keeping each negotiated amount visible makes it easier to compare offers that have the same price but different economics.

What payoff, settlement, and proration lines belong in the estimate?

Request a written mortgage payoff for the expected closing date. A current loan balance from an online account may omit daily interest, release charges, a home-equity line, or another amount needed to clear title. Property taxes should be based on the actual parcel bill, not on the sale price. Maryland tax bills cover a fiscal year beginning July 1, and a settlement company typically adjusts the current bill between buyer and seller based on the closing date, what has already been paid, and the contract. Special charges or credits on the parcel can change the result. Title, settlement, document-preparation, wire, release, and similar seller charges vary by provider and transaction. Ask the selected title company for a written seller quote instead of using a round-number allowance.

Which HOA and condominium costs should an Olney seller check?

If the property belongs to a homeowners association or condominium, the resale-package charge may be only one association-related line. Also check current dues, unpaid balances, special assessments, transfer or move charges, violations that may require correction, and prorations through closing. As of September 2, 2026, Maryland's maximum base charge for an HOA or condominium resale disclosure package is the association's actual cost, capped at $311.24. Permitted inspection and faster-delivery fees can add to that amount. The cap adjusts periodically, so recheck the Maryland Department of Housing and Community Development fee notice if the transaction closes after this article's review date. An association generally has up to 20 days after a proper written request and payment to furnish the package. Requesting it early helps expose an unpaid balance, special assessment, or other financial issue before the final net sheet. The full timing and disclosure duties differ between HOAs and condominiums, so sellers should follow the Maryland HOA statute, the Maryland condominium statute, and the advice of their agent and settlement professionals.

Three illustrative Olney seller net sheets

The worksheets below start with the ordinary-buyer tax assumptions used in the first example table. The remaining blanks must be filled with documents from the actual transaction before the result becomes useful.

Net-sheet line	$650,000 scenario	$800,000 scenario	$1,000,000 scenario	Use this source
Sale price	$650,000	$800,000	$1,000,000	Ratified contract
Less illustrative seller deed-tax share	$7,840	$10,524	$14,180	Title-company calculation and contract
Subtotal before property-specific items	$642,160	$789,476	$985,820	Calculation
Less negotiated brokerage compensation	Enter signed amount	Enter signed amount	Enter signed amount	Brokerage agreement
Less mortgage and credit-line payoff	Enter payoff	Enter payoff	Enter payoff	Written lender payoff
Less title and settlement charges	Enter quote	Enter quote	Enter quote	Title-company seller quote
Plus or less tax and HOA prorations	Enter adjustment	Enter adjustment	Enter adjustment	Current bills and closing date
Less association package, balances, and assessments	Enter actual amount	Enter actual amount	Enter actual amount	Association documents and ledger
Less seller credits	Enter contract amount	Enter contract amount	Enter contract amount	Contract and amendments
Less repair reimbursement and other title obligations	Enter actual amount	Enter actual amount	Enter actual amount	Agreements, invoices, and title report
Estimated cash to seller	Calculate after all entries	Calculate after all entries	Calculate after all entries	Preliminary settlement statement

These are not three promises of what an Olney home will net. They are three starting worksheets that show why the property-specific documents matter more than a generic closing-cost percentage. If approved pre-sale work will be reimbursed from closing proceeds, use the guide to paying for home repairs at closing in DC and Maryland to identify the signed agreement, invoices, and no-close terms that belong in the calculation.

What documents turn the worksheet into a property-specific net sheet?

Gather these before comparing offers:

1. The proposed or ratified contract, including every addendum and seller credit.
2. The signed brokerage agreement and its compensation terms.
3. Written mortgage, home-equity, and other lien payoff statements through the expected closing date.
4. The current Montgomery County property-tax bill and any special-charge information.
5. Current HOA or condominium dues, resale package, account ledger, transfer charges, and special-assessment notices.
6. The title company's preliminary seller statement and written fee quote.
7. Approved repair, preparation, or staging reimbursement agreements and invoices.
8. Any judgment, estate, trust, divorce, bankruptcy, solar, water, utility, or other document that can affect title or settlement.
9. The expected closing date, because payoff interest and prorations change over time.

The result is still an estimate until settlement. It should be refreshed when the contract, closing date, payoff, title work, association ledger, or credit changes.

How can Fed City Team help an Olney seller compare the real net?

Fed City Team can build a property-specific seller net sheet using the expected price, current Montgomery County rates, the proposed contract allocation, actual payoffs, association documents, and title-company figures. We can also compare offers by cash to seller rather than price alone. If property condition is part of the decision, we can compare an as-is path with a defined preparation plan and identify any approved costs that would be reimbursed at closing. The point is to see the tradeoffs before signing, not after the settlement statement arrives. Read more about Olney real estate and neighborhoods, or request a property-specific seller net sheet.

Frequently asked questions

How much should an Olney seller budget for closing costs?

There is no reliable one-size-fits-all percentage. Start with the seller's contractually allocated share of State transfer tax, Montgomery County transfer tax, and recordation tax, then add negotiated brokerage compensation, payoff, settlement charges, prorations, association amounts, credits, repairs, and other title obligations.

Who pays transfer and recordation taxes in Montgomery County?

Maryland generally presumes the buyer and seller split State transfer tax, local transfer tax, and recordation tax equally unless the contract or another law changes the allocation. A qualifying first-time Maryland buyer creates a different rule, so the title company should confirm the exact split.

What is the Montgomery County transfer-tax rate for a typical Olney home?

The county transfer-tax rate is 1% of the consideration for an ordinary residential sale of $70,000 or more. That is the total county tax, not automatically the seller's share. The contract and Maryland allocation rules determine how much is charged to each side.

How is Montgomery County recordation tax calculated?

It uses progressive marginal rates for each $500 of consideration, or fraction of $500. An eligible principal-residence purchase can exempt the first $100,000, and the title company should verify the affidavit and calculate the exact amount.

What changes if the buyer is a first-time Maryland home buyer?

For a qualifying principal-residence purchase, the State transfer-tax rate is 0.25% and the seller pays it. By default, the seller also pays the local transfer and recordation taxes unless the contract expressly reallocates those two charges.

How much can an HOA or condominium charge for a resale package?

As of September 2, 2026, the base charge cannot exceed the association's actual cost or $311.24, whichever is lower. Permitted inspection and expedited-delivery charges may be additional, and the statutory cap changes periodically.

Is the mortgage payoff a seller closing cost?

It reduces the cash the seller receives at closing, but it is repayment of existing debt rather than a tax or fee created by the sale. Use a written payoff through the expected closing date instead of the current online balance.

Are net proceeds the same as taxable profit?

No. Cash at settlement and taxable gain are different calculations. Basis, improvements, depreciation, exclusions, selling expenses, and the seller's tax situation can affect taxable gain, so a CPA or tax attorney should answer that question.

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Related guides: Pay for Home Repairs at Closing in DC and Maryland and DC Seller Closing Costs: Transfer Tax and What You Actually Net.