Sellers routinely estimate proceeds as 'price minus what I owe'. The real arithmetic has more lines, and knowing them shapes pricing, negotiation and timing.
The cost stack
- Agent compensation: commonly a percentage of the sale price, negotiated with each agent.
- Transfer taxes and legal fees: vary by jurisdiction; verify locally.
- Mortgage payoff: the remaining loan balance, plus any prepayment specifics.
- Preparation and repairs: staging, paint, fixes the inspection will demand anyway.
- Concessions: anything you agree to credit the buyer.
A net proceeds example
Sell at $500,000 with 6% total selling costs ($30,000), a $280,000 loan payoff and $8,000 of preparation: net before tax = 500,000 − 30,000 − 280,000 − 8,000 = $182,000. Every negotiation now has a price: a $10,000 price cut reduces proceeds by $10,000, but so does a $10,000 concession, while costing you less carrying time.