How to determine your net profits?

What’s the cost of selling your home? As a seller, you’re bound to face a parade of taxes, fees, commissions and miscellaneous that can whittle away up to 4 to 7 percent of your home’s sale price.

So how do you know what you’ll walk away with? Once you receive an offer, or maybe even when you sign your listing agreement, your real estate agent should give you a Seller’s Estimated Net Proceeds worksheet, which gives you an idea of all the costs that will be deducted when you close.

Costs vary state to state but in general here are some of the fees your may encounter.

Mortgage Payoff Balance

Deductions from the sale price include your own home loan, second mortgages and home equity lines of credit.

Loan Payoff Fee

Some lenders may charge you an administrative fee to pay off your loan.

Lien Release Document

If you owe money to either a contractor, court judgments or for property taxes, a lien may have been placed on your property and you must pay that money before the sale can close.

Prepayment Penalty

Find out from your lender if you have a prepayment penalty clause if you pay off your loan early.

Recording fees

If you owe money on the property, you’ll need to pay this fee to show your debts have been fully paid.

Commissions for Listing and Selling Agents

This is the price you pay to the agents for making the sale of your house. Usually the fee is 6 percent, with half going to your agent’s brokerage and the rest going to the buyer’s agent’s brokerage. The agents get paid from their respective brokerages.

Notary Fees

Fee charged by a notary to verify your identity and to make sure the documents are executed properly.

Escrow Fees

The escrow company is the intermediary between you and the buyer ensuring that the money is handled properly. Escrow agents receive money from the lender, pay off your mortgage and closing costs, collect deposits, and give the proceeds to the lender. You may be able to split these costs with the buyer.

Title Search Fees

It’s not really insurance per se but title insurance is saying that you have the legal right to sell your home. Title companies search through public records to come up with a title insurance commitment. That commitment says you own the home and details anything else that may affect the title, such as mortgages, liens, easements, restrictions and homeowner association declarations.

Seller Concession

You and the buyer might agree to the price of a house but the buyer asks for a 3 percent closing cost concession. That concession is added on to the price of house and you give back that 3 percent to the seller to pay for closing costs.


You may be required to pay for repairs, either by negotiation with the buyer or by a condition of the lender.

Home Warranty

Sometimes a seller will agree to foot the bill for a home warranty that offers a protection plan for the buyer’s first year in the home.