"We're Selling for $1.5 Million!"
Sounds great.
Until someone asks:
"How much are you actually walking away with?"
Suddenly the conversation gets more complicated.
Because:
$1,500,000 sale price
doesn't necessarily mean:
$1,500,000 in your pocket.
There may be:
- Mortgage payoff.
- Real estate compensation.
- Transfer taxes.
- Escrow charges.
- Title-related costs.
- HOA fees.
- Repairs.
- Staging.
- Inspections.
- Seller credits.
- Prorated taxes.
- Solar payoff or transfer costs.
- Other transaction expenses.
And depending on your circumstances, there may also be tax considerations that need to be addressed with a qualified tax professional.
That's why one of the most important questions I want every seller to ask before listing is:
"What will my estimated net proceeds be?"
Not:
"What can we list it for?"
Not:
"What did my neighbor get?"
And not:
"What's the commission?"
The number that ultimately matters to you is:
What do I walk away with?
The Difference Between Sale Price and Net Proceeds
Let's make this simple.
Suppose you sell your home for:
$1,500,000
You still owe your mortgage lender:
$700,000
That doesn't mean you have:
$800,000
to put in your pocket.
There are transaction expenses that come out before the remaining proceeds are distributed.
The final amount is your:
Estimated Net Proceeds
And that number should be part of your planning before you list.
The Basic Formula
Think of it this way:
Sale Price
minus
Mortgage/Lien Payoffs
minus
Selling Costs
minus
Seller Credits
minus
Other Transaction Debits
equals
Estimated Net Proceeds
It's simple conceptually.
But each category can contain several different expenses.
Why Sellers Get Surprised
Many homeowners have never sold a house before.
They think:
"If I sell for $1.5 million and owe $800,000, I'll make $700,000."
Not necessarily.
You may have additional expenses.
And some of those expenses are:
Negotiable.
Some are:
Contract-dependent.
Some are:
Property-specific.
And some may depend on:
The city, county, transaction structure or other circumstances.
That's why a seller net sheet is so useful.
What Is a Seller Net Sheet?
A seller net sheet is an estimate of what you may receive from the sale after accounting for anticipated transaction expenses and payoff amounts.
It isn't a guarantee.
The actual final numbers come from escrow and the parties providing the applicable payoff and closing figures.
But an estimated net sheet can help you answer:
"If we sell for $1.5 million, approximately how much will we have left?"
That's a much more useful number for planning your next move.
Let's Walk Through the Major Costs
There are several categories I want sellers to understand.
1. Real Estate Compensation
This is usually the first expense sellers think about.
But there's an important distinction in today's market:
Compensation is negotiable.
California's DRE has specifically addressed changes in buyer representation and compensation following the national real estate settlement, including changes in how buyer-agent compensation is handled.
So don't assume there is one universal commission structure.
Instead, understand:
What services are being provided?
What compensation is being requested?
What is negotiable?
What, if anything, are you agreeing to contribute toward a buyer's agent compensation?
Those terms should be discussed and documented in the appropriate agreements.
Don't Shop Only by Percentage
This is one of the biggest mistakes sellers make.
Suppose Agent A says:
"I'll charge 1% less."
Sounds great.
But ask:
What does the marketing look like?
Who handles negotiations?
How is pricing determined?
How is the home launched?
What exposure will the property receive?
How are offers evaluated?
What happens when problems arise?
A lower fee isn't automatically a lower total cost.
The Cheapest Agent Can Become the Most Expensive Decision
Imagine:
Agent A charges less but prices your home too high.
The home sits.
You eventually reduce the price.
Then you accept an offer below where a properly positioned property might have sold.
You saved money on the fee.
But potentially lost much more on the sale price.
That's why I always tell sellers:
Look at the entire financial equation.
2. Mortgage Payoff
This is usually one of the biggest deductions.
Suppose your home sells for:
$1,500,000
and your mortgage payoff is:
$800,000
Your remaining equity before other expenses is:
$700,000
But your actual mortgage payoff may be slightly different from the balance you see on your monthly statement.
Why?
Because the payoff can account for:
- Accrued interest.
- Fees.
- Other loan-related amounts.
- Additional liens associated with the property.
Escrow typically obtains payoff information from the lender.
What If You Have a Second Mortgage?
You may also have:
- HELOC.
- Home equity loan.
- Second mortgage.
- Other recorded lien.
Those obligations can affect your final proceeds.
Don't forget them when estimating your net.
3. Other Liens
A title search can identify liens and encumbrances affecting the property. The California DRE explains that a preliminary title report identifies ownership history as well as liens and encumbrances.
Potential issues can include:
- Tax liens.
- Judgment liens.
- Contractor liens.
- HOA-related obligations.
- Other recorded claims.
This is another reason I recommend starting the sale process early.
The "Surprise Lien" Problem
Imagine you're ready to close.
Then escrow says:
"There's a lien that needs to be resolved."
Now everyone is scrambling.
Sometimes the issue is easy to resolve.
Sometimes it isn't.
Either way:
Early discovery is better.
4. County Transfer Tax
California real estate transactions can involve documentary transfer taxes.
The exact amount depends on the transaction and applicable jurisdiction.
The California Association of Realtors' standard purchase agreement, for example, specifically addresses county transfer taxes and fees as an allocation item between buyer and seller.
The amount should be calculated for the actual transaction rather than using a generic statewide assumption.
5. City Transfer Tax
This is where East Bay sellers need to pay attention.
Depending on the city, there may be:
A city transfer tax.
The amount and applicability can vary.
This is one reason I don't like giving sellers a generic:
"Selling costs are X%."
The actual cost depends on:
Where the property is located.
For an East Bay seller, the calculation should be specific to the property.
6. Escrow Fees
Escrow is an important part of the transaction.
The escrow holder helps facilitate the transaction, handles funds and documents, and prepares the closing statement showing credits and debits.
The California DRE explains that escrow generally begins once the parties agree to the sale and closes when the purchase is completed.
Who pays the escrow fee?
That can depend on:
- Contract terms.
- Local custom.
- Negotiation.
- Transaction structure.
Don't assume.
Look at the actual agreement.
7. Title Costs
Title work can involve:
- Title search.
- Title insurance.
- Other title-related services.
Who pays for which title-related costs can depend on the agreement and local practice.
The DRE notes that title companies search the ownership history and identify liens and encumbrances, while title insurance protects against certain covered title defects.
8. HOA Fees
If you're selling a condo, townhome or HOA property, there can be additional expenses.
These might include:
- HOA document preparation.
- Transfer fees.
- Certification fees.
- Move-related fees.
- Special assessments.
- Outstanding balances.
The exact allocation depends on the transaction documents and HOA requirements.
The California purchase agreement specifically addresses HOA disclosure and transfer-related fees.
Don't Forget the HOA Demand
If you're selling an HOA property, start this process early.
You don't want to discover:
A balance
or:
An upcoming assessment
at the last minute.
The HOA can have its own timeline for preparing documents and responding to requests.
9. Repairs
This is where the cost can vary dramatically.
One seller may spend:
$2,000
before listing.
Another:
$25,000.
Another:
$100,000.
There is no universal number.
That's why Blog #53 and Blog #56 are so important.
Before spending money, determine:
What actually improves the sale?
Don't Renovate Just Because You Can
This is one of the easiest ways to waste money.
You don't necessarily need:
A $75,000 kitchen remodel
to sell a house.
Maybe the better investment is:
Paint.
Lighting.
Flooring.
Landscaping.
Deep cleaning.
Decluttering.
Minor repairs.
The right answer depends on the property.
10. Staging
Staging can be another selling expense.
Depending on the property, staging might involve:
- Furniture rental.
- Accessory rental.
- Consultation.
- Partial staging.
- Full staging.
But again:
The goal isn't to spend the most.
The goal is to make the property show as well as possible relative to the price you're asking.
11. Photography and Marketing
Professional photography can be a selling expense.
So can:
- Floor plans.
- Video.
- Drone photography.
- Matterport or 3D tours.
- Brochures.
- Signage.
- Advertising.
- Social media campaigns.
- Digital marketing.
These aren't necessarily "closing costs."
But they are part of the cost of selling.
That's an important distinction.
There Are Two Types of Selling Costs
I like to separate them into:
Transaction Costs
Costs associated with actually completing the sale.
Examples:
- Escrow.
- Title.
- Transfer taxes.
- Payoffs.
- Certain HOA fees.
And:
Preparation & Marketing Costs
Costs associated with getting the home ready and attracting buyers.
Examples:
- Repairs.
- Staging.
- Photography.
- Cleaning.
- Landscaping.
- Marketing.
Both affect your net.
12. Cleaning
This sounds minor.
But professional cleaning can make a meaningful difference.
You may have:
$500
in cleaning expenses.
But a cleaner home can:
- Photograph better.
- Show better.
- Feel better.
- Reduce buyer objections.
Not every expense has to be huge to be worthwhile.
13. Landscaping
The front yard is often the first thing buyers see.
Depending on the property:
- Trimming.
- Mulch.
- Weeding.
- Plant replacement.
- Pressure washing.
- Lawn repair.
- Tree work.
can improve presentation.
Again:
Don't overspend.
Make the property look cared for.
14. Seller Credits
This is a big one.
A seller may agree to provide a buyer with:
A credit toward closing costs.
Or:
A repair credit.
Or:
Another negotiated concession.
That reduces the seller's net proceeds.
For example:
Sale price:
$1,500,000
Buyer credit:
$15,000
Your effective proceeds before other costs are now:
$1,485,000
That's why you can't evaluate an offer based only on the headline number.
15. Repair Credits After Inspection
This connects directly to Blog #56.
The buyer's inspection may uncover:
$20,000 of requested repairs.
You could potentially:
Repair the items.
Provide a credit.
Negotiate a different amount.
Decline the request.
The outcome depends on the contract, contingencies, market conditions and negotiation.
But every concession affects your net.
The $1.6 Million Offer Isn't Always the $1.6 Million Deal
Imagine:
Offer A
$1,600,000
No credit.
Offer B
$1,625,000
$30,000 seller credit.
Offer B's headline number is higher.
But after the credit:
$1,595,000
before other differences.
Now you need to compare:
Price + credit + contingencies + financing + terms + probability of closing.
16. Property Tax Prorations
Property taxes can be prorated at closing.
The actual calculation depends on:
- Closing date.
- Tax status.
- County records.
- Contract terms.
This isn't necessarily a "fee" in the traditional sense.
It's an adjustment between buyer and seller.
But it affects the closing statement.
17. HOA Prorations and Assessments
The same concept can apply to HOA expenses.
You may have:
Monthly dues.
Special assessments.
Other charges.
Escrow determines the appropriate credits and debits according to the transaction documents and applicable information.
18. Solar
If you have solar, your selling costs can become more complicated.
You may have:
Owned solar.
Solar loan.
Lease.
Power purchase agreement.
The transaction may require:
- Payoff.
- Transfer.
- Documentation.
- Buyer qualification.
- Escrow coordination.
Find your solar paperwork before listing.
Solar Can Affect Your Net Proceeds
Imagine you owe:
$18,000
on a solar loan.
That obligation may need to be addressed in the transaction.
Don't wait until the week of closing to find out what happens.
19. Home Warranty
Some sellers choose to offer a home warranty.
This can be part of the marketing or negotiation strategy.
It's not automatically necessary.
But depending on the property and buyer expectations, it may be worth considering.
20. Home Inspection
A seller may choose to pay for:
Pre-listing inspection.
This is exactly what we discussed in Blog #56.
It isn't automatically required.
But it can be a useful preparation expense.
21. Pest Inspection
Depending on the property, a seller may choose to obtain a pest report.
Again:
Property-specific.
A 60-year-old home with visible wood damage may justify different preparation than a newer home.
22. Attorney or Professional Consultation
Most transactions don't require a seller to hire an attorney.
But complicated situations may justify professional advice.
For example:
- Estate issues.
- Trusts.
- Boundary disputes.
- Major title issues.
- Unpermitted construction.
- Litigation.
- Complex tax questions.
If you need legal or tax advice, use the appropriate professional.
23. California Tax Withholding
This is an area sellers often misunderstand.
California has withholding rules that can apply to sales of California real property, but there are exemptions and exceptions.
For example, CAR's consumer guide explains that while California law provides for withholding in certain circumstances, many sellers qualify for exemptions, including individuals selling a principal residence when the applicable requirements are met.
This is something escrow typically helps address through the required seller forms.
Don't assume:
"3.33% is automatically coming out of my sale."
And don't assume:
"I definitely don't have to worry about withholding."
Let escrow determine the applicable requirements.
24. Capital Gains Taxes
This is a completely different question from transaction costs.
You may potentially have federal or California tax consequences from the sale depending on:
- Purchase price.
- Improvements.
- Basis.
- Selling expenses.
- How long you've owned the property.
- Whether it was your principal residence.
- Prior use.
- Other circumstances.
There are federal rules that may allow qualifying homeowners to exclude some capital gain from the sale of a principal residence.
But:
Do not calculate this from a real estate blog.
Talk to your CPA or tax professional.
Selling Costs Can Affect Tax Calculations
Some selling expenses may potentially affect the calculation of gain for tax purposes.
That is another reason to keep:
Closing statements.
Improvement records.
Invoices.
Receipts.
Tax documents.
Your accountant can tell you which records matter.
Your Original Purchase Price Isn't Your Entire Tax Basis
This is another common misunderstanding.
Your tax basis can involve more than:
What you originally paid.
Certain qualifying improvements and other items may affect basis.
Keep your records.
Don't throw away your old renovation invoices.
25. Moving Costs
This isn't technically a transaction closing cost.
But it's absolutely part of the financial cost of selling.
You may have:
- Movers.
- Storage.
- Temporary housing.
- Cleaning.
- Utility transfers.
- Repairs at your next home.
If you're planning your next move, include those expenses in your overall budget.
26. Your New Home
This is the cost sellers forget the most.
You're not just selling.
You're often:
Selling and buying.
If you're buying another home, you'll have a completely separate set of expenses.
The California DRE notes that purchasing a home can involve down payment, closing costs, taxes, insurance, repairs, upgrades and ongoing expenses.
So your sale proceeds need to be viewed in the context of your next purchase.
Your Net Proceeds May Be the Down Payment for Your Next Home
Suppose you estimate:
$600,000 net proceeds.
You want to buy a:
$1.5 million home.
Now your selling strategy directly affects your purchasing power.
A $50,000 difference in net proceeds could meaningfully change your next transaction.
That's why seller strategy matters.
Don't Confuse Equity With Cash
You may have:
$800,000 of equity.
But that doesn't mean you'll receive:
$800,000 in cash.
Your equity is generally:
Property value minus debt and other claims.
Your net proceeds are:
Sale price minus the actual costs and obligations associated with closing.
Those are different numbers.
Let's Run a Hypothetical Example
Suppose an East Bay home sells for:
$1,500,000
And imagine, purely for illustration:
Mortgage payoff: $700,000
Real estate compensation: $60,000
Transfer taxes/fees: $7,500
Escrow/title-related costs: $5,000
Repairs/credits: $10,000
Other transaction expenses: $2,500
That would leave approximately:
$715,000
before any additional items not included in this simplified example and before considering applicable taxes.
The point isn't that these are universal numbers.
They aren't.
The point is:
The $1.5 million sale price isn't your net.
Why I Don't Like Saying "Selling Costs Are Always X%"
You've probably heard:
"It costs about 6% to sell a house."
That might have been a useful rule of thumb in certain contexts.
But in 2026, I would rather build an actual estimate.
Why?
Because seller expenses vary.
Your transaction may have:
- Different compensation.
- Different city transfer taxes.
- Different HOA costs.
- Different repair expenses.
- Different credits.
- Different title/escrow charges.
- Different loan payoffs.
One percentage cannot accurately describe every transaction.
The Better Question
Don't ask:
"What percentage does it cost to sell?"
Ask:
"What will my estimated net proceeds be at different sale prices?"
That's much more useful.
Build a Net Proceeds Scenario
For example:
Scenario A
Sale price:
$1,450,000
Estimated net:
$X
Scenario B
Sale price:
$1,500,000
Estimated net:
$Y
Scenario C
Sale price:
$1,550,000
Estimated net:
$Z
Now you can make a much more informed decision.
This Also Helps With Pricing
Remember Blog #54?
We talked about pricing.
Now imagine:
You need at least:
$700,000
in net proceeds.
Your pricing strategy needs to account for:
Mortgage payoff + selling costs + desired net.
That doesn't mean you can simply choose a list price based on your desired net.
The market still determines value.
But now you know your financial target.
Your Financial Need Does Not Determine Market Value
This is an important distinction.
You may need:
$750,000
to buy your next house.
That doesn't mean your home is worth whatever price produces $750,000.
The market determines the value.
Your net proceeds determine:
What options you have.
The Seller Net Sheet Can Help You Decide Whether to Sell
This is especially important when you're considering:
Moving up.
Downsizing.
Moving out of state.
Buying an investment property.
Retiring.
Moving closer to family.
Before listing, ask:
"What will I actually have available after the sale?"
The "Magic Number" Conversation
Sometimes a seller says:
"I need $900,000."
Okay.
Let's work backward.
If the seller needs:
$900,000 net
and owes:
$500,000
and has estimated selling expenses:
$80,000
then the required sale price would be approximately:
$1,480,000
But that is only a planning calculation.
The market may support:
$1.4 million.
Or:
$1.5 million.
Or:
$1.6 million.
That's where pricing strategy comes back into the conversation.
What If the Market Won't Support the Number You Need?
This is one of the hardest seller conversations.
You may need:
$1.5 million
but the market supports:
$1.4 million.
You have choices.
You could:
Wait.
Improve the property.
Adjust your next purchase.
Accept a lower net.
Explore other financial options.
But pretending the home is worth $1.5 million doesn't solve the problem.
This Is Why Selling Should Start Months Before Listing
Not:
"Let's list next week."
Instead:
90+ Days Before
Understand your financial position.
60–90 Days Before
Review condition and potential repairs.
30–60 Days Before
Complete strategic improvements.
30 Days Before
Gather disclosures and documentation.
2–4 Weeks Before
Finalize pricing and marketing.
Launch
Put the property on the market with a plan.
The exact timeline varies.
But preparation matters.
The More Expensive the Home, the More Important the Math Becomes
Imagine a:
$600,000 home.
A $10,000 difference matters.
Now consider:
$2 million home.
A $50,000 pricing or negotiation difference becomes much more significant.
At higher price points, sellers should pay close attention to:
- Compensation.
- Transfer taxes.
- Credits.
- Repairs.
- Financing.
- Timing.
- Tax implications.
- Net proceeds.
The Highest Offer Isn't Always the Best Financial Outcome
Suppose:
Offer A
$1,550,000
Offer B
$1,600,000
But Offer B requests:
$35,000 in credits
and has less favorable terms.
Now the difference is only:
$15,000
before considering the other terms.
That's why offers should be evaluated as complete packages.
A Strong Offer Can Save You Money
A buyer with:
Strong financing.
Large down payment.
Clean terms.
Reasonable contingencies.
Strong deposit.
may be more valuable than an offer that is slightly higher but significantly riskier.
A failed transaction can cost:
Time.
Marketing momentum.
Money.
Stress.
And potentially:
A second launch.
What About a Cash Buyer?
Cash can sometimes reduce financing-related uncertainty.
But again:
Cash doesn't automatically mean best offer.
Price and terms still matter.
What About a 30-Day Closing?
A fast close may be attractive.
But it depends on your circumstances.
If you need:
45 days
to find your next home, a 21-day close might not be ideal.
This is why the seller's goals need to be understood before negotiating.
The Financial Cost of Time
Remember:
Every month costs money.
You may continue paying:
- Mortgage.
- Property taxes.
- HOA.
- Utilities.
- Insurance.
- Maintenance.
So a buyer offering slightly less but closing quickly might sometimes produce a better overall result.
But Don't Sacrifice Price Just for Speed
The opposite can also be true.
If the market is strong and your home is desirable, you shouldn't automatically accept a lower price just because the buyer wants a quick close.
Again:
It's about the complete equation.
What About Capital Improvements?
This brings us back to Blog #53.
Before spending:
$50,000
ask:
"How much will this actually improve my sale?"
Maybe it adds:
$75,000.
Great.
Maybe it adds:
$25,000.
Not great.
Maybe it doesn't materially affect the price but makes the home easier to sell.
That can still be valuable.
Don't Spend $100,000 to Chase $50,000
This sounds obvious.
But sellers do it all the time.
They become emotionally attached to the idea of:
"Making the house perfect."
The market doesn't necessarily reward every dollar.
The Best Seller Improvements Are Usually Strategic
Think:
Return on investment.
Not:
"What would I love to have in my house?"
Those are different questions.
What About Staging?
A seller might spend:
$5,000
on staging.
If it helps generate:
A stronger offer
or:
A faster sale
it may be worthwhile.
But again:
Measure the strategy.
What About Photography?
Same idea.
A $1,000 professional marketing package isn't the same as a $1,000 repair.
But both can affect the outcome.
The goal is to maximize:
Net result.
What About a Price Reduction?
This is another hidden cost.
Suppose you list at:
$1.7 million
and later reduce to:
$1.6 million.
You may not have spent $100,000 directly.
But your pricing strategy created the possibility of:
Lost time.
Lost buyer momentum.
Additional carrying costs.
Negotiating weakness.
Potentially:
A lower final sale price.
That's why Blog #54 matters.
The Cheapest Way to Sell Isn't Always the Most Profitable Way to Sell
You can reduce:
Marketing.
Preparation.
Staging.
Professional services.
But if the home sells for less as a result:
you may have saved:
$10,000
and lost:
$50,000.
That's not savings.
That's a bad trade.
Think in Terms of Net
This is the theme of this entire article.
Not:
"What did I spend?"
Not:
"What percentage is the commission?"
Not:
"What did my neighbor sell for?"
Instead:
"What is my likely net outcome?"
The Seller Net Sheet Should Be a Living Document
As the transaction progresses, estimates change.
At listing:
Estimated net.
After offer:
Updated net.
After inspection negotiation:
Updated net.
After credits:
Updated net.
At escrow:
Final settlement figures.
The numbers become more precise as the transaction moves forward.
What Does Escrow Do?
Escrow helps coordinate the financial and documentary side of the transaction.
The DRE explains that escrow holds documents and funds and ensures that the conditions of the transaction are met before closing.
The final statement provides the actual credits and debits associated with the closing.
Read Your Closing Statement
Don't just sign.
Look at:
Sale price.
Loan payoff.
Escrow charges.
Title charges.
Transfer taxes.
Credits.
Prorations.
HOA charges.
Other debits.
If something doesn't make sense:
Ask.
You should understand where your money is going.
The Seller's Bottom Line
Before you list your East Bay home, I recommend knowing three numbers:
Number One
Likely Market Value
What is the market likely to support?
Number Two
Expected Selling Costs
What will it cost to complete and market the transaction?
Number Three
Estimated Net Proceeds
What do you expect to walk away with?
Those three numbers give you a much clearer picture.
The Four Numbers I Actually Want Sellers to Know
I would go one step further.
Know:
1. Conservative Sale Price
What happens if the market doesn't cooperate?
2. Target Sale Price
What do we realistically believe the property can achieve?
3. Strong Sale Price
What happens if demand is better than expected?
4. Net Proceeds
What does each scenario leave you with?
Now you're planning.
Not guessing.
The Bottom Line
Selling a home isn't just about the sale price.
It's about the net result.
A:
$1.5 million sale
doesn't automatically mean:
$1.5 million in your pocket.
You may have:
Mortgage payoffs.
Real estate compensation.
Transfer taxes.
Escrow and title charges.
HOA expenses.
Repairs.
Staging.
Marketing.
Credits.
Prorations.
Solar obligations.
And potentially:
Tax consequences.
The exact numbers vary from property to property.
That's why I don't believe sellers should rely on a generic "cost to sell" percentage.
Instead, build an actual estimate.
Know what you're likely to pay.
Know what you're likely to net.
Then decide:
What price makes sense?
What repairs make sense?
What offer makes sense?
What does the next move look like?
Because ultimately, the question isn't:
"How much did my house sell for?"
The question is:
"How much did I actually walk away with—and did the sale accomplish what I needed it to accomplish?"
That's the number that matters.
Waleed "Walter" Akbar
Everhome Real Estate
📞 (510) 541-1610
Frequently Asked Questions
How much does it cost to sell a home in California?
There is no single fixed percentage. Costs can include real estate compensation, escrow, title-related charges, transfer taxes, repairs, marketing, staging, HOA fees, seller credits and other transaction-specific expenses.
Is there a standard 6% commission in California?
No. Real estate compensation is negotiable, and current buyer-representation and compensation practices have changed. Sellers should review the actual compensation terms in their agreements.
Who pays the real estate commission?
The allocation of compensation depends on the agreements and transaction structure. Sellers should not assume there is one universal arrangement.
What is a seller net sheet?
It is an estimate of the seller's proceeds after anticipated transaction expenses, loan payoffs, credits and other applicable debits.
What is deducted from the sale price?
Potential deductions include mortgage and lien payoffs, real estate compensation, transfer taxes, escrow and title-related costs, seller credits, HOA charges, prorations and other transaction expenses.
Do sellers pay transfer taxes in California?
Transfer-tax responsibility depends on the applicable jurisdiction and contract terms. County and, in some locations, city transfer taxes can apply. The actual transaction documents determine the allocation.
Are there city transfer taxes in the East Bay?
Some East Bay jurisdictions have local transfer taxes or fees. The applicable amount depends on the property's location and transaction circumstances.
Does the seller pay escrow?
Escrow-fee responsibility can depend on the contract and local practice. Review the actual purchase agreement rather than assuming one party always pays.
Does the seller pay title insurance?
The allocation of title-related costs can vary based on the transaction and agreement. Your escrow/title company can provide the applicable charges.
What if I have a mortgage?
The outstanding mortgage generally needs to be paid off from the sale proceeds unless another arrangement is made.
What if I have a HELOC?
A HELOC generally needs to be addressed and paid off or otherwise resolved as part of the transaction if it is secured by the property.
What if there is a lien on my house?
A lien may need to be resolved before the transaction can close. A title search can identify recorded liens and encumbrances.
Do repairs count as selling costs?
They may not be formal closing costs, but they are absolutely part of the economic cost of preparing and selling a property.
Should I renovate before selling?
Not automatically. Improvements should be evaluated based on likely return, buyer expectations, competition and the property's condition.
Do seller credits reduce my net proceeds?
Yes. A credit to the buyer generally reduces the amount the seller receives from the transaction.
What about HOA fees?
HOA properties can involve disclosure, transfer, certification and other fees, as well as potential assessments. The actual costs depend on the association and transaction.
What about solar?
Solar loans, leases and power-purchase agreements can affect a transaction. Sellers should gather their solar documents before listing.
Will I owe capital gains tax?
Possibly, depending on your circumstances. Tax treatment can depend on your basis, ownership history, use of the property and other factors. Consult a qualified tax professional.
Does California automatically withhold 3.33% from my sale?
Not necessarily. California withholding rules have exemptions and exceptions, and many sellers may qualify for an exemption. Escrow generally handles the applicable seller declarations and withholding process.
How can I estimate what I'll walk away with?
Start with an estimated sale price, subtract your mortgage and other liens, estimated selling expenses, anticipated credits and other applicable costs, and review the estimate with your Realtor and escrow company.
When do I know my exact net proceeds?
Your final net proceeds are determined through the actual closing statement and final payoff and transaction figures at closing.
Related East Bay Resources
- How to Price Your East Bay Home for Sale
- California Seller Disclosures: What Homeowners Need to Know
- Should You Get a Pre-Listing Home Inspection?
- What Should You Fix Before Selling Your East Bay Home?
- Should You Sell Your Home As-Is?
- Why Overpricing Your East Bay Home Can Cost You Money
- How to Choose the Right Realtor in the East Bay
- How to Compare Multiple Offers
- Should You Accept the Highest Offer?
- What Happens After You Accept an Offer?
- How Long Does It Take to Sell an East Bay Home?
- How to Sell an Older East Bay Home
- How to Sell a Home With Solar
- How to Sell a Home With an HOA
- How to Prepare Your Home for Professional Real Estate Photography