Selling a home in Delaware has its own rules — a transfer tax that's the highest state-level rate in the country, a disclosure statute with real teeth, a withholding form that surprises out-of-state owners at the closing table, and a brand-new law governing cash-offer wholesalers. These are the questions Delaware sellers actually ask, with the statute or source behind each one.
Last updated: September 2, 2026.
What it costs to sell
What is Delaware's realty transfer tax?
Four percent of the sale price — 2.5% state and 1.5% local. It's customarily split evenly between buyer and seller, so a seller generally pays about 2%. That's the highest state-level realty transfer tax in the country, which is why it looms so large in seller math here.
Who actually pays the transfer tax?
Both parties are liable, and the 50/50 split is custom, not law. It's negotiable, and in a slower market it sometimes moves. On a $400,000 sale, each side's customary share is about $8,000, so it's worth negotiating rather than assuming.
What does it cost in total to sell a home in Delaware?
Budget roughly 7% of the sale price: commission, your ~2% transfer tax share, and $1,000–$2,000 in miscellaneous settlement costs. On a $350,000 sale that's about $24,000. Your actual number depends on what you negotiate and what the buyer asks for.
Is the commission negotiable?
Always, and it always has been. Commission is set by agreement between you and your broker, not by any rule or schedule. What matters more than the percentage is what you net — a cheaper listing that sells for less isn't a savings.
Will I owe capital gains tax when I sell?
Often not. Federal law lets you exclude up to $250,000 of gain if you're single, or $500,000 if married filing jointly, provided you owned and lived in the home as your main residence for at least two of the last five years. Gain is your sale price minus your cost basis, not your sale price minus your mortgage — a distinction that trips people up. Talk to a tax professional about your situation.
I live out of state. What gets withheld at my Delaware closing?
This is the one that surprises people. Delaware requires Form 5403 for all conveyances, presented at recording, and non-resident sellers owe estimated income tax on the gain — 6.6% for individuals and most entities, 8.7% for C corporations. It isn't an extra tax, it's prepayment against your Delaware return, but it comes out of your proceeds that day. Exemptions include resident sellers, sales where the gain is excluded from income, and foreclosures.
Your disclosure obligations
Do I have to tell buyers about problems with my house?
Yes. Delaware's Buyer Property Protection Act requires sellers to disclose all known material defects in writing (6 Del. C. § 2572), and the disclosure has to be given before you sign the listing agreement. It also has to be updated if something changes before closing.
When do buyers have to receive the disclosure?
Before they make an offer. The statute requires the agent, subagent, or seller to give a copy "to all prospective buyers... prior to the time the buyer makes an offer to purchase" (§ 2573).
Do I have to disclose radon?
Yes, to the extent you have information. Section 2572A requires sellers to provide any existing radon test results and to notify buyers of known hazards, and the Real Estate Commission maintains a form documenting that notification and the buyer's acknowledgment of testing options.
Is the disclosure a warranty on the house?
No. The statute says explicitly that the disclosure "is not a warranty of any kind by the seller" (§ 2574). It's a statement of what you know, not a guarantee of condition.
What if I honestly don't know the answer to something?
Say so on the form. The obligation is to disclose known defects, not to investigate or to guess. What creates liability is knowing something and not saying it.
Are any sales exempt from the disclosure requirement?
Yes. Section 2577 exempts transfers by court order, sheriff's sales, foreclosures, transfers to a spouse or blood relative, transfers between co-owners, government transfers, and property settlements in a divorce. If you inherited a house you never lived in, talk to your agent about how the exemptions apply to you.
Can a buyer sue me over a defect I disclosed?
The statute limits it. Section 2575 provides no cause of action for defects that were disclosed before the offer, or that developed after the offer but were disclosed before closing. Disclosing early is what protects you.
Cash offers and wholesalers
Should I sell my house to a wholesaler?
Usually not, but it depends on your situation. A wholesaler typically contracts at around 70% of your home's fixed-up value and assigns that contract to a real buyer for more. Most sellers net roughly 25% less than they would listing as-is, even after paying commission and transfer tax. We laid out the full math in our breakdown of Delaware's wholesaler law.
Can I cancel a contract with a wholesaler?
Yes. Since August 30, 2026, Delaware gives you until midnight of the 21st calendar day after signing — or until conveyance, whichever comes first — to cancel, with any money refunded within 10 business days. Send notice in a way you can prove. The right cannot be waived.
Do wholesalers have to be licensed in Delaware?
Yes, under Senate Bill 201. The licensure requirement takes effect February 26, 2027; the disclosure and cancellation rules took effect August 30, 2026. If you're selling your own property rather than wholesaling as a business, none of it applies to you.
What's the difference between a wholesaler, an iBuyer, and a cash investor?
A cash investor buys your house and takes title. An iBuyer is a company doing the same at scale, usually with a service fee. A wholesaler generally never takes title at all — they control your contract and sell it to someone else, keeping the spread. The first two are buying a house; the third is selling your contract.
Pricing, exposure, and how you sell
Do homes listed on the open market sell for more?
The research says yes, though it disagrees on how much. Bright MLS — Delaware's MLS — and Drexel University found MLS-listed homes sold about 17.5% more than comparable off-MLS sales. Zillow found a smaller gap of 1.3%, worse for lower-priced homes at 2.2%. Compass, which sells private marketing, claims a premium the other way. Every one of those studies was funded by a party with a stake in the answer, so read them accordingly — but the direction is consistent, and the mechanism is simple: more buyers competing tends to produce a higher price.
Should I sell off-market or as a pocket listing?
Sometimes there's a real privacy or timing reason. Just know what you're trading. A private listing reaches that brokerage's buyers; the open market reaches every buyer and every agent. If you go that route, do it as a deliberate choice rather than a default.
Do I have to make repairs before I list?
No. Selling as-is is a legitimate strategy in Delaware, and it's how most distressed and dated properties trade. Buyers will price the work in — but they'll price it at retail repair cost, not at the discount a wholesaler applies. That difference is usually where the money is.
Can I sell my house myself without an agent?
You can. Nationally, 91% of sellers used an agent in 2025 and for-sale-by-owner hit an all-time low of 5%. You'd still owe the same transfer tax and carry the same disclosure obligations under the Buyer Property Protection Act.
Selling under pressure
Can I sell my house if I'm behind on my mortgage?
Usually yes, and often it's the better outcome than waiting. As long as the sale nets enough to satisfy the loan and costs, a normal sale works — you just have less runway. The sooner you get a real value opinion, the more options stay open.
What if I owe more than the house is worth?
That's a short sale, and it requires your lender's approval of the price and terms. It takes longer and has tax and credit implications, so it needs both a lender conversation and a professional advisor before you commit to a path.
I'm a landlord selling a property with a tenant in it. What are my obligations?
The lease travels with the property, and Delaware's notice rules still apply — including 60 days' written notice to end a month-to-month tenancy and 48 hours' notice before showings. Our Delaware Landlord & Tenant FAQ covers the details.
What should I do first if I need to sell quickly?
Find out what the house is actually worth as-is before you talk price with anyone. Every option — listing, a cash offer, a short sale — gets evaluated against that number, and without it you're negotiating blind. It costs nothing and takes about a day.
If you're weighing a sale in Delaware, start with your number. Request a free Home Equity Report at search.teamsordelet.com/seller — your home's current value, the equity you've built, and what prices and inventory are doing in your neighborhood. If you're up against a deadline, call me and we'll work out what's realistic.
This page is general information about Delaware law and real estate practice, not legal, tax, or financial advice, and it doesn't create an attorney-client relationship. Statutes and tax rules change — the "last updated" date tells you how current this is. For your specific situation, talk to a Delaware attorney and a tax professional.
About David Sordelet
David Sordelet is the Designated Broker of Real Broker Delaware and Team Leader of Team Sordelet, with over two decades of experience, 1,000+ transactions, and 200+ five-star reviews across Wilmington, Newark, Hockessin, Dover, Middletown, and the Maryland Eastern Shore.
License: RB-0031238-DE / 5013138-MD
