What does it actually cost to sell a house?
Selling a house costs a mix of agent commission, closing costs, and any concessions you agree to. The commission is usually the single largest deduction, and it is negotiable. Your total depends on your sale price, location, mortgage payoff, and the terms you negotiate, so no single percentage fits every seller.
Think of your costs in three buckets. First, the agent commission — historically the biggest line, paid from the proceeds and, since the 2024 industry changes, openly negotiable rather than fixed. Second, closing costs — title and escrow or settlement fees, transfer taxes, recording fees, and prorated property taxes, which vary widely by state and county. Third, concessions and prep — buyer credits for repairs, staging, photography, and any pre-listing fixes you choose to make. On top of those, your mortgage payoff is deducted at closing, though that is returning your own borrowed money, not a selling cost. Because every one of these lines moves with your price, your location, and what you negotiate, chasing a single "typical percentage" is the wrong instinct. The right instinct is to itemize your own numbers. See how much of your price goes to commission before you sign anything.
How much of the sale price goes to agent commission?
Commission is a percentage of the sale price, historically split between the listing side and the buyer side. There is no legally fixed rate — the 2024 NAR settlement reinforced that every rate is negotiable. What you pay depends on the services included and how hard agents compete for your listing.
The commission has always been the largest and most misunderstood cost. The widely repeated "6%" figure is a rule of thumb, not a law, and after the 2024 National Association of Realtors settlement it is explicitly negotiable, with buyer-agent compensation now handled separately rather than assumed. A percentage still buys a real service: pricing, marketing, negotiation, and the coordination that carries a deal to closing. But two identical homes can pay very different rates depending on how the seller negotiates and how motivated the agent is to win the work. That is the entire premise of a competitive marketplace — when several agents compete for one listing, each has a reason to sharpen the fee, the marketing plan, and the projected price instead of quoting a default. Ask every agent to put their rate and what it includes in writing, then compare them side by side.
What closing costs does a seller pay?
Beyond commission, sellers typically pay title or settlement fees, escrow charges, transfer or documentary taxes, recording fees, and a prorated share of property taxes and HOA dues through the closing date. Some are negotiable or customary to split with the buyer; the exact mix depends heavily on your state and county.
Closing costs are the smaller, less glamorous deductions that still add up. Title insurance or a settlement fee protects the buyer against defects in the chain of ownership, and in many areas the seller customarily pays some portion. Escrow or attorney fees cover the neutral party who holds funds and documents until the deal completes. Transfer, documentary, or excise taxes are charged by the state, county, or city when the deed changes hands, and the rate and payer vary sharply by jurisdiction. You will also settle prorated property taxes and any HOA dues up to the closing date, plus recording fees for filing the new deed. Which side pays which item is often local custom, not law, which means several of these lines are negotiable. Get a written seller net sheet from your agent or title company early, so no cost is a surprise on closing day.
How do you estimate your net proceeds?
Net proceeds are your sale price minus commission, closing costs, concessions, and your remaining mortgage balance. Start with a realistic sale price, subtract each deduction, and you have your estimated take-home. A written seller net sheet does this math for you and updates as offers and terms change.
Net proceeds are the only number that truly matters, because they are what actually reaches you. The formula is simple: begin with a defensible sale price, then subtract the agent commission, closing costs, any buyer concessions, and the payoff on your existing mortgage. What remains is your estimate. The discipline is in using honest inputs — an inflated price or a lowballed commission makes the whole estimate fiction. This is why knowing what to sell your house for comes before you plan around any proceeds. Two levers move this number most: the price the market will genuinely support, and the commission you negotiate. A seller net sheet lets you model both, and re-run it every time an offer or a repair request changes the terms. Treat it as a living worksheet, not a one-time guess, all the way to the closing table.
| Deduction | Usually paid by | Negotiable? |
|---|---|---|
| Agent commission | Seller, from proceeds | Yes — always negotiable |
| Title / settlement fee | Varies by local custom | Sometimes; often split |
| Escrow or attorney fee | Varies by local custom | Sometimes |
| Transfer / documentary tax | Set by state, county, or city | Rarely — set by law, but payer can vary |
| Prorated property taxes & HOA | Seller, through closing date | No — calculated to the day |
| Buyer concessions / repairs | Seller, if agreed | Yes — part of the offer |
| Mortgage payoff | Seller (returns your own loan balance) | No — it is your remaining debt |