What selling a home really costs
The sale price is not what lands in your account. Agent commissions, closing costs, any credits to the buyer and the mortgage payoff all come out first. This calculator splits the commission between the listing and buyer agents and shows your net proceeds.
How commissions work since 2024
Following the 2024 National Association of Realtors settlement, the listing agent’s fee and any compensation for the buyer’s agent are negotiated separately, and offers of buyer-agent pay are no longer published on the MLS. In practice:
- The listing agent fee is agreed in your listing contract, often around 2.5–3%.
- The buyer agent fee is set in a written agreement between the buyer and their agent. The buyer may ask the seller to cover it as part of the offer, or pay it directly.
- Everything is negotiable, including flat-fee and discount brokers.
The formulas
- Commission = sale price × (listing % + buyer agent % paid by the seller)
- Other closing costs = sale price × closing cost %
- Net proceeds = sale price − commission − other closing costs − mortgage payoff − concessions
Worked example: a $450,000 sale
You agreed 2.75% with your listing agent and accept the buyer’s request to pay 2.5% to their agent. Other closing costs are 1.5%, and you still owe $220,000 on the mortgage.
- Listing agent: $12,375. Buyer agent: $11,250. Total commission: $23,625.
- Other closing costs: $6,750 (title, escrow, transfer tax, prorated property tax).
- Net proceeds: 450,000 − 23,625 − 6,750 − 220,000 = $199,625.
- All selling costs together come to 6.75% of the price.
Commission by sale price
| Sale price | Total commission (5.25%) | Net proceeds |
|---|---|---|
| $250,000 | $13,125 | $13,125 |
| $350,000 | $18,375 | $106,375 |
| $450,000 | $23,625 | $199,625 |
| $600,000 | $31,500 | $339,500 |
| $800,000 | $42,000 | $526,000 |
These rows keep the same $220,000 payoff, which is why proceeds shrink so quickly at lower prices.
Ways to keep more of the price
- Negotiate the listing fee, especially on higher-priced homes where a lower percentage still pays well.
- Decide your position on buyer-agent pay before listing, and weigh it against the risk of fewer offers.
- Fix small issues before listing rather than giving large repair credits after the inspection.
- Check transfer taxes: some states and cities charge the seller 1% or more, while others charge nothing.
Taxes on the gain
If the home was your main residence for two of the last five years, up to $250,000 of gain ($500,000 for married couples filing jointly) is excluded from federal income tax. Commissions and closing costs reduce the taxable gain, so keep your closing statement.