The cost to sell a house depends on your location, agreements, property condition, and final contract. Build your budget from the actual expenses: agent compensation, closing charges, preparation, repairs, and any buyer credits. Then subtract mortgage payoff and other debts secured by the home to estimate the money you keep.
A single percentage can miss costs or count them twice. An itemized estimate gives you a clearer basis for planning your next move.
Start with a seller's net sheet
A seller's net sheet is an estimate of the proceeds left after a sale's deductions. Ask your agent or closing professional to prepare one using your expected price and local charges.
For a broader moving budget, use this calculation:
Expected sale price − selling expenses − mortgage and lien payoffs − preparation and moving expenses = estimated cash remaining.
Keep track of when each expense is paid. Cleaning paid before listing should reduce your overall budget, but it should not also appear as an unpaid deduction from the closing payment.
If you need a starting price, read how to estimate what your house is worth. Run the budget at the lower end of your range as well as at your preferred price.
Agent compensation
Ask each agent for a written explanation of their fee, included services, additional charges, and when payment is due. If you agree to pay any buyer-side broker compensation, identify it separately and confirm how it appears in the transaction documents.
Agent compensation is negotiable. There is no universal commission rate that every seller must pay. The National Association of REALTORS® explains this in its consumer guide to listing agreements.
Compare the service as well as the fee. Photography, showings, marketing, negotiation support, and closing coordination may differ between proposals. Our questions to ask a listing agent can help you compare them.
Closing charges and adjustments
Request a local estimate from the title company, escrow company, attorney, or other professional handling your closing. Depending on your transaction, seller charges may include:
- Settlement, escrow, title, or attorney charges.
- Transfer or recording charges allocated to you.
- Property tax and homeowners association adjustments.
- Association documents or transfer fees.
- Other charges assigned to you by the contract or local requirements.
Do not assume that a buyer's closing-cost estimate describes your costs. Ask who pays each line item and which figures remain uncertain. The allocation can depend on both local rules and negotiated terms.
Preparation, repairs, and buyer credits
Make a separate list for work before the sale. Include cleaning, painting, storage, landscaping, photography, staging, and repairs only where you expect to pay for them.
Get quotes for major work before deciding whether to complete it. Then compare three options with your agent: repair before listing, price for the current condition, or negotiate a credit if the buyer requests one.
A seller concession is an agreement to cover certain buyer costs. Its availability and limits depend on the transaction, including the buyer's financing. See the National Association of REALTORS® guide to seller concessions.
Record each negotiated credit once. If a $5,000 repair credit already appears under concessions, do not also subtract it as a separate repair payment.
Mortgage payoff and other secured debts
Mortgage payoff reduces the cash you receive, even though repaying the loan is different from paying a selling fee.
Request a payoff statement for the expected closing date. The Consumer Financial Protection Bureau explains that payoff can differ from the balance on your statement because it includes interest through the payoff date and may include other charges. Learn how mortgage payoff works.
Also tell your closing professional about a second mortgage, home equity line of credit, or other known lien. Ask what must be paid or resolved before the sale can close.
A worked example of selling costs
The following figures are hypothetical. They are not typical fees, a recommended commission, or a quote for your market.
- Sale price: $500,000.
- Mortgage payoff: $280,000.
- Total agent compensation agreed for this example: $20,000.
- Seller closing charges and adjustments: $7,000.
- Negotiated buyer credit: $5,000.
After those deductions, the estimated closing proceeds are $188,000.
Now suppose the seller also spent $6,000 on preparation and expects $3,000 in moving expenses. The remaining budget after those expenses would be $179,000, before any applicable income taxes or other costs.
If the sale price fell by $10,000 and all deductions stayed fixed, that budget would fall to $169,000. In a real transaction, some percentage-based charges could change too. This is why a lower-price scenario is useful before you commit to your next purchase.
Use a calculator, then confirm the details
The HomeFunnel home sale calculator provides a first estimate using sale price, mortgage balance, agent commission, closing costs, and repairs. Replace the defaults with your own assumptions.
Track costs outside its fields separately, including buyer concessions, moving expenses, other liens, and any taxes. Ask your closing professional to reconcile the estimate with the actual transaction.
Selling cost questions
Are net proceeds the same as taxable profit?
No. The cash left after mortgage payoff is not the same calculation as taxable gain. The IRS explains the role of selling expenses, adjusted basis, and possible exclusions in Publication 523, Selling Your Home. A tax professional can apply those rules to your situation.
Can I reduce selling costs by skipping repairs?
Possibly, but compare the saving with the likely effect on offers and negotiations. A written repair estimate gives you a better basis for that decision than a guess. Use our preparing your house for sale checklist to set priorities.
When should I estimate my proceeds?
Before listing, again when evaluating an offer, and again before closing. Update the estimate when the price, credits, fees, or closing date changes.
Photo by Maria Ziegler on Unsplash, used under the Unsplash License.