The number that matters isn't your sale price — it's your net proceeds: what actually hits your bank account after everyone else is paid. Sellers who compute this before listing avoid two painful surprises: discovering they can't afford their next move, and discovering it at the closing table.
The Full Deduction Stack
| Line Item | Typical Amount | Notes |
|---|---|---|
| Mortgage payoff | Your balance + per-diem interest | Request an official payoff quote; it runs higher than your statement balance |
| Agent commissions | 4–6% of sale price | Negotiable; covers listing side and any buyer-agent compensation you offer |
| Transfer taxes / deed stamps | 0–2%+ by state & city | Huge variance: zero in some states, 1–2%+ in high-tax metros |
| Title insurance (owner's policy) | 0.3–0.6% | Customarily seller-paid in many states; varies by local custom |
| Escrow / settlement / attorney fees | $500–$2,500 | Attorney required in ~20 states |
| Property tax prorations | Your share of the year | You pay taxes for the days you owned; can be a credit in arrears states |
| HOA fees | $200–$1,000+ | Estoppel/resale certificate, transfer fees, any unpaid dues |
| Buyer concessions | 0–3% | Repair credits or closing-cost help negotiated in the contract |
| Home warranty for buyer | $400–$700 | Optional sweetener, common in some markets |
A Worked Example
Sale price $450,000. Mortgage payoff $260,000. Commissions at 5%: $22,500. Transfer tax at 1%: $4,500. Title and settlement: $2,800. Tax prorations: $1,900. Inspection credit negotiated: $3,000. Net proceeds: $450,000 − $260,000 − $22,500 − $4,500 − $2,800 − $1,900 − $3,000 = $155,300. Notice the sale price says '450' but the check says '155' — run this math before you list, not after.
Ask your agent or title company for a 'seller net sheet' at three price points: your target, 5% below, and your walk-away floor. It turns every future negotiation into a known-net decision instead of an emotional one.
Taxes on Your Gain
If the home was your primary residence for at least 2 of the last 5 years, Section 121 excludes up to $250,000 of gain ($500,000 married filing jointly) from capital gains tax. Your gain is the sale price minus selling costs minus your cost basis — purchase price plus capital improvements. Keep receipts for improvements: a new roof, HVAC, addition, or remodel all raise basis and shrink taxable gain. Investment properties play by different rules (capital gains plus depreciation recapture — see our tax guide).
Your proceeds arrive by wire or check after the deed records — same day to a couple of business days after closing. Wire fraud targets sellers too: confirm wire instructions by phone with the title company using a number you looked up independently, never one from an email.
Where Sellers Can Save
- Negotiate the commission — especially on higher-priced homes, and always in writing before signing the listing agreement
- Shop the title and settlement fees where local custom allows the seller to choose
- Challenge junk fees: 'admin,' 'compliance,' and 'transaction' fees stacked on top of commission are negotiable
- Time your sale after a property tax payment in arrears states to turn prorations into a credit
Sale price is vanity, net proceeds are sanity. Get a payoff quote, build a net sheet, and negotiate every line that isn't a government charge.