Calculate exactly what you walk away with after selling
Sellers routinely overestimate what they'll walk away with because they focus on the sale price and forget the stack of costs between the sale and their bank account. The total cost of selling a property typically runs 8–12% of the sale price. On a $350,000 sale, that's $28,000–$42,000 that never hits your checking account. Understanding each cost lets you plan accurately and negotiate from a position of knowledge.
Agent commissions are the single largest selling cost, typically 5–6% of the sale price (split between buyer's and seller's agents). On a $350,000 sale, that's $17,500–$21,000. While the 2024 NAR settlement has changed how commissions are structured, in practice most sellers still offer buyer agent compensation to attract the widest pool of buyers. Negotiating your listing agent's commission by even 0.5% saves $1,750 on that $350K sale. Discount brokerages offer lower rates (1–2% listing side) but with fewer services.
Closing costs on the sell side include title insurance (required in most states, $1,000–$3,000), attorney fees (mandatory in some states, $500–$1,500), recording fees, and miscellaneous administrative charges. These typically total 1–2% of the sale price. Transfer taxes vary dramatically by location: from zero in some states to over 2% in others. Check your state and county rates — they can be a significant hidden cost.
Repairs and concessions are costs that surprise sellers after they've already mentally spent their proceeds. Most buyers request repairs after a home inspection, and in a balanced or buyer's market, sellers typically contribute $2,000–$10,000 in repairs or closing cost credits. Even in a seller's market, pre-listing repairs for safety and mechanical issues ($1,000–$5,000) are common. Budget at least 1–2% for this line item.
Capital gains tax is the cost most often forgotten — and it can be the most expensive. If you sell an investment property for a gain, you'll owe federal capital gains tax (15–20% depending on income) plus state taxes. The tax is calculated on the gain: sale price minus your cost basis (original price + improvements − depreciation). For investment properties, depreciation recapture is taxed at 25%. The one bright spot: primary residence sellers can exclude up to $250,000 in gain ($500,000 if married filing jointly) if they've lived in the home for at least 2 of the last 5 years — one of the most powerful tax benefits in the US tax code.
How to maximize your net proceeds: (1) Time your sale to qualify for the primary residence capital gains exclusion if possible. (2) Negotiate agent commissions — even 0.5% savings adds up. (3) Get a pre-listing inspection to handle repairs proactively and avoid last-minute concession requests. (4) For investment properties, consider a 1031 exchange to defer capital gains entirely by reinvesting into another property. (5) Keep meticulous records of all capital improvements — they increase your cost basis and reduce your taxable gain.