Selling a home has more fees than buying. The net proceeds — what you actually walk away with — is typically 8-12% less than the sale price once commission, concessions, title, taxes, and repairs come out.
Worked example: $500,000 sale. Subtract: commission 5.5% ($27,500) + concession to buyer $8,000 + title and escrow $3,000 + transfer tax 1% ($5,000) + inspection repairs $4,000 + remaining mortgage payoff $285,000. Net to seller: $167,500. Minus capital gains tax if above exclusion.
Every line item on a seller's HUD
- Listing commission: 2.5-3% to your agent
- Buyer agent commission: 2.5-3% (post-NAR settlement, this is now negotiated separately)
- Buyer concession: 0-6% depending on loan type and market
- Title insurance (owner's policy): 0.5-1% of sale price in most states; seller pays in about 60% of states
- Escrow/settlement fee: $500-$2,000
- Transfer tax / doc stamps: 0-3% depending on state
- Attorney fees: $500-$1,500 in attorney-state closings
- Prepaid HOA dues (seller pays their share up to closing day)
- Inspection-driven repairs: highly variable
- Staging: $2,000-$5,000 if used
- Mortgage payoff: principal balance plus per-diem interest through closing
- Prepayment penalty: rare post-2008, check your note
Capital gains — the IRS cut
Single filers can exclude $250K of gain, married $500K, on a primary residence lived in 2 of the last 5 years. Above that, gains are taxed at long-term capital gains rates (0%, 15%, or 20% federal plus state). Keep receipts for improvements — they add to your cost basis and reduce taxable gain.
Post-NAR settlement: how commission works now
As of 2024, buyer agent commissions are no longer automatically offered via MLS. Sellers can choose whether to offer anything. If offered, it's negotiated separately from listing commission. This is saving sellers 1-2% on average as buyer agent commissions get negotiated down.