What is the typical agent commission when selling a home?

Historically the total real estate commission was 5–6% of the sale price, split roughly equally between the listing agent and the buyer's agent. Following the 2024 NAR settlement, buyer's agent compensation is now negotiated separately, and sellers have more flexibility on what they offer. Many sellers are negotiating listing commissions of 2–3% with their listing agent, then offering a buyer's agent compensation of 2–3% to attract buyer interest. Discount brokerages and flat-fee listing services can reduce the listing side to 1% or a flat fee.

What closing costs do sellers pay?

Seller closing costs typically include: owner's title insurance policy (varies by state but often $500–$2,000), transfer taxes or deed stamps (varies widely — minimal in some states, 1–2%+ in NY, MD, DC), escrow or settlement fees ($300–$1,000), attorney fees if required in your state, prorated property taxes (if closing mid-year before taxes are paid), and HOA transfer fees if applicable. Sellers do not typically pay for the buyer's lender fees, appraisal, or homeowner's insurance. Get a preliminary closing disclosure from your title company for precise numbers.

What happens if my net proceeds are negative (short sale)?

If the sale price minus all deductions is negative — meaning you owe more on your mortgage than the sale nets — you are in a short sale situation. This requires your lender's approval before the sale can close. You would need to pay the difference out of pocket, or negotiate with the lender to accept less than the full payoff (a short sale). Short sales require lender approval, take longer to close, and can impact your credit. Contact your lender or a HUD-approved housing counselor if you believe your home is underwater.

How can I maximize my net proceeds when selling?

The biggest levers are: (1) Negotiate the commission — even reducing by 0.5% on a $400,000 home saves $2,000; (2) Price strategically — an accurately priced home sells faster and with fewer concessions; (3) Minimize repair concessions by addressing obvious issues before listing rather than offering credits after inspection; (4) Reduce closing cost concessions by pricing the offer to net what you need rather than offering large credits; (5) Time the sale — in strong seller markets, buyers waive concessions; in buyer markets they demand them.

Should I sell as FSBO to save commission?

For Sale By Owner (FSBO) eliminates the listing agent commission (typically 2.5–3%), but research suggests FSBO homes sell for 5–6% less on average than agent-listed homes (NAR data), potentially erasing the commission savings. Agents provide pricing expertise, marketing reach through the MLS, negotiation skills, and transaction management. A middle ground is a flat-fee MLS listing service where you pay a flat fee (often $200–$500) to get MLS access, then offer a buyer's agent commission of 2–3%, handling the sale yourself. This can save 2–3% while maintaining MLS visibility.

Do I owe capital gains tax on my home sale proceeds?

Most homeowners qualify for the primary residence exclusion (IRC Section 121), which excludes up to $250,000 of capital gains ($500,000 for married filing jointly) from federal tax, provided you owned and lived in the home as your primary residence for at least 2 of the last 5 years. Net proceeds are not the same as capital gain — your taxable gain is sale price minus your adjusted cost basis (purchase price + improvements). If your gain exceeds the exclusion, the excess is taxed as long-term capital gains (0%, 15%, or 20% depending on income). Consult a tax professional for your specific situation.

Home Sale Proceeds Calculator

The Home Sale Proceeds Calculator shows you exactly how much money you will walk away with after selling your home. Enter the sale price, agent commission, remaining mortgage balance, seller closing costs, and any repair credits or concessions to see your estimated net proceeds. This is the number that actually hits your bank account — not the sale price.

Sale Price

Agreed-upon purchase price

Agent Commission

Total % paid to both agents

Remaining Mortgage Balance

Current payoff amount from lender

Seller Closing Costs

Title, transfer taxes, escrow fees

Repairs / Concessions

Repair credits or buyer concessions

Net Proceeds

$140,750.00

Agent Commission

$24,750.00

Mortgage Payoff

$280,000.00

Seller Closing Costs

$4,500.00

Repairs / Concessions

$0.00

Total Deductions

$309,250.00

How to use this calculator

1
Enter the sale price
The agreed-upon sale price from your purchase contract. If you are estimating before listing, use your agent's suggested list price or a recent Zestimate/Redfin estimate as a starting point, but rely on your agent's CMA for accuracy.
2
Enter the agent commission
Total agent commission as a percentage of the sale price. The traditional rate was 5–6% split between buyer's and seller's agents, though this has become more negotiable following the 2024 NAR settlement. Your listing agreement specifies the exact rate.
3
Enter your remaining mortgage balance
The current payoff amount on your mortgage — this is what you owe the lender at closing. Call your lender or check your online account for the exact payoff amount (not the current balance, as payoff includes accrued interest to the payoff date).
4
Enter seller closing costs
Sellers typically pay title insurance, transfer taxes or deed stamps, escrow fees, and any prorated property taxes. These vary by state and county but often total $2,000–$8,000. Your title company or agent can provide an estimated closing statement.
5
Enter repairs and concessions
Any repair credits offered to the buyer after the inspection, or closing cost concessions. If you agreed to replace the roof for $15,000 or offer the buyer $5,000 toward closing costs, enter that amount here.
6
Review your net proceeds
The net proceeds is what you receive at closing after all deductions. If the number is negative, you have a short sale situation where the sale price does not cover your debts — contact your lender immediately to discuss options.

Formula

Agent Commission    = salePrice × (commissionPct / 100)
Total Deductions    = agentCommission + mortgageBalance
                    + sellerClosingCosts + repairsConcessions
Net Proceeds        = salePrice − totalDeductions

Net proceeds is simply what remains after every party gets paid at closing. The largest deductions are typically the agent commission (3–6% of sale price) and the mortgage payoff. Seller closing costs are transaction costs the seller is responsible for by convention in their market — these vary significantly by state. Transfer taxes alone can be 1–2% in high-tax states like New York or Maryland. Repair credits and concessions reduce proceeds dollar-for-dollar. Example: $450,000 sale price, 5.5% commission ($24,750), $280,000 mortgage payoff, $4,500 closing costs, $2,000 repair credit. Total deductions: $311,250. Net proceeds: $138,750.

Worked Example

Sale Price: $450,000 Agent Commission: 5.5% = $24,750 Remaining Mortgage: $280,000 Seller Closing Costs: $4,500 Repair Concessions: $2,000 Total Deductions: $24,750 + $280,000 + $4,500 + $2,000 = $311,250 Net Proceeds: $450,000 − $311,250 = $138,750 You will receive approximately $138,750 at closing, before any capital gains tax considerations.

Frequently Asked Questions

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