What Home Sellers Actually Pay at Closing
Home sellers typically net 92%–95% of the sale price after covering real estate commissions, transfer taxes, title/escrow fees, and any remaining mortgage payoff. A seller net sheet totals these deductions to project the actual cash proceeds you'll walk away with.
Agent Commissions (5%–6%)
Commission is typically split between the listing agent and buyer's agent and is the largest single seller expense. Post-2024 NAR settlement changes make commission rates more negotiable than ever.
Transfer Taxes & Title Fees
State and county transfer/stamp taxes (often 0.1%–2% of sale price) plus title insurance and escrow fees typically add another 1%–3% of the sale price to total seller costs.
Net Seller Proceeds Formula
Net Proceeds = Sale Price − Commission − Transfer Tax − Title/Escrow Fees − Mortgage Payoff
Example: $400,000 sale, 5% commission ($20,000), $2,000 transfer tax, $2,500 title/escrow, $250,000 mortgage payoff ≈ $125,500 net cash to seller.
Costs Sellers Often Forget
- Prorated property taxes owed up to the closing date.
- Buyer-requested repair credits negotiated after inspection.
- HOA transfer or resale certificate fees.
