The sale price is the number on the sign. The number that matters is what lands in your account after closing, and the distance between the two is wider than most owners plan for.
Every line that comes out of the price
| Cost | Who usually pays | When | How to shrink it |
|---|---|---|---|
| Listing agent’s commission | Seller | At closing | Negotiate the rate and what it covers |
| Buyer’s agent’s commission | Seller or buyer, by agreement | At closing | Decide in advance whether you will offer it |
| Transfer or conveyance tax | Varies by state, sometimes by contract | At closing | Little room, but know the rate before you price |
| Title and settlement fees | Varies by local custom | At closing | Ask for an itemized estimate early |
| Attorney fees | Seller, where attorneys handle closings | At closing | Agree on a flat fee up front |
| Prorated property taxes | Seller, up to the closing date | At closing | Fixed by the calendar |
| Repairs or credits after inspection | Negotiated | Before or at closing | A pre-listing inspection, or an as-is sale |
| Preparation, staging, photography | Seller | Before listing | Spend only where buyers will notice |
| Carrying costs | Seller | Every month until closing | Sell faster, or set the closing date yourself |
How commission works now
Commission has always been negotiable. Since August 2024, under the settlement of lawsuits against the National Association of Realtors, offers to pay buyers’ agents no longer appear on NAR-affiliated MLSs, and buyers must sign a written agreement with their agent before touring a home. Sellers can still agree to pay some or all of a buyer’s agent’s fee, and many do. Our report on commissions after the settlement has the figures and the sources.
See what a private, off-market sale of your home would look like →
A worked net sheet
Here is a hypothetical for a house that would list at $500,000, with an assumed 5 percent total commission for illustration.
| Line | Listed sale | Private sale |
|---|---|---|
| Price | $500,000 | $450,000 |
| Commission | $25,000 | $0 |
| Repairs and credits | $10,000 | $0 |
| Preparing the house | $4,000 | $0 |
| Carrying costs, four months listed or one month private | $12,000 | $3,000 |
| Before taxes, title fees and payoff | $449,000 | $447,000 |
In this example the two land within a few thousand dollars of each other, and the private sale closes three months sooner. Change the inputs, a faster listing, a higher offer or bigger repairs, and either one can come out ahead. Put your own numbers in the same table before you decide.
If the house is listed with an agent now, read the listing agreement before you talk to another buyer, because it may owe the agent a commission on any sale during its term.
Taxes on the gain
If you owned the house and lived in it as your main home for at least two of the five years before the sale, you may be able to exclude up to $250,000 of gain from your income, or $500,000 for a married couple filing jointly, according to the IRS. Gain above that is taxable, and some states tax it too. A loss on the sale of your home is not deductible, the IRS says.
Questions
What are typical seller closing costs?
They vary too much by state to give one figure. Transfer taxes alone range from nothing in some states to a meaningful share of the price in others. Ask a title company or closing attorney for an itemized estimate for your address.
Can I avoid paying the buyer’s agent?
You can decline to offer it, but a buyer may ask you to cover their agent as part of an offer, and that becomes one more term to negotiate.
Is a private sale always cheaper?
A direct sale usually removes commission and most preparation costs, and an as-is sale can remove repair credits. Whether it nets more depends on the price, which is why the net sheet matters.
Do I pay capital gains tax on my home?
Only on gain above the federal exclusion, if you qualify for it, and on any gain if you do not. A tax adviser can run your numbers.
Sources
- National Association of Realtors, Consumer guide to written buyer agreements, Sept. 6, 2024
- IRS, Topic 701, sale of your home, accessed Oct. 2026
- IRS, What if I sell my home for a loss?, accessed Oct. 2026
