Seller guide
Seller closing costs and net proceeds
The amount a seller keeps is usually much lower than the sale price. Net proceeds are what remains after paying off loans and subtracting commission, taxes, concessions, and closing costs.
Common seller costs
Seller costs commonly include real estate agent commission, mortgage payoff, transfer taxes, attorney or title fees, recording fees, seller concessions, repair credits, HOA document fees, lien payoffs, and prorated expenses. Some of these costs are predictable early in the process. Others change after inspections, negotiations, payoff statements, or title review.
Commission and payoff are often the largest line items. Transfer taxes and settlement charges can also matter, especially in higher-tax states or cities. If a seller agrees to pay part of the buyer's closing costs, that credit directly reduces proceeds.
Example seller net sheet
A homeowner selling for $500,000 with a $390,000 payoff starts with $110,000 of gross equity before sale expenses. A 6% commission is $30,000. If transfer taxes, attorney or title fees, recording charges, and other seller costs are about $6,000, the rough net is $500,000 minus $390,000 minus $30,000 minus $6,000, or about $74,000. Concessions, repair credits, prorations, or payoff changes would reduce or increase that number.
How to make the estimate better
- Use a realistic sale price, not only the number you hope to receive.
- Request a current payoff quote if closing is likely soon.
- Enter the commission rate from your listing agreement or offer terms.
- Ask whether transfer taxes are state-only or include city and county taxes.
- Add seller concessions, credits, HOA fees, or liens before relying on the result.