net proceeds from selling my home

Your proceeds from selling your home depend on its sale price and associated selling fees, in addition to considering your outstanding mortgage balance and holding costs.

Calculating net proceeds of a sale requires subtracting out the outstanding mortgage balance from the sale price, transfer taxes and closing agent fees being added as additional expenses.

Real estate agent commissions

Real estate agent commissions are an integral component of selling your home, yet can often be confusing. To make informed decisions about your sale and maximize profits while covering moving expenses or investing in future properties. Thankfully, these fees can often be negotiable and reduced accordingly.

Home sellers typically pay 6% of their sales price as real estate agent commissions, split between seller’s agents, buyer’s agents, and brokers representing both parties. Although commission split can sometimes be negotiated between agents individually, typically this figure split is 50/50; which would give each agent an estimated earnings total of $30,000. For an average home that sells for $500.000 this would equal to one agent making total earnings of $30,000.

The actual split may differ slightly between sellers’ and buyers’ agents; they must agree upon it prior to listing. Furthermore, some agents owe referral fees to out-of-state agents who generate leads that result in sales; these fees will be deducted from the total commission amount. Furthermore, how much of each sale each real estate agent earns will also depend on their license type, experience level, commission rate and market they operate within.

When considering selling your property, commissions can quickly accumulate. Luckily, these fees may be reduced by negotiating with your real estate agent and using online services that pair you with agents.

Importantly, even if you sell your property without using an agent, there will still be buyer agent’s commission and service fees, such as marketing expenses and photography costs, professional photography sessions and listing costs. Your final sale price may also depend on how long your property remains listed for sale and market conditions at that particular location.

“iBuyer” companies may offer an option to avoid commission fees altogether by purchasing properties at auction directly. Their algorithms and technology use enable them to make cash offers within days – although their downsides include lower sale prices and increased closing costs.

Escrow fees

Escrow fees are part of the closing costs that buyers and sellers pay when closing a real estate transaction. They are charged to an escrow company which oversees this process of finalizing sales; typically both buyers and sellers share these costs equally; however, individual fees may differ based on factors like property taxes and loan requirements that influence costs associated with homebuying transactions.

Buyers will also incur a recording fee, which is charged by local governments to create an official record of the transfer of ownership between seller and buyer. Its amount depends on both property value and local laws governing transfer; more information on this fee can be found through your county taxing authority website or title company. In some escrow companies’ services agreements an attorney’s fee may also be included as part of this escrow fee if mishandling occurs during closing process.

Escrow fees are a key element of home buying, as they help both parties remain protected in case the deal collapses. If buyers handed money directly over to sellers before closing occurs, any earning money given would likely be lost should either side back out – while with money held in escrow both sides cannot touch it until closing is complete.

As part of their escrow fees, buyers will also incur inspection fees, which may include pest inspection, electrical and plumbing inspections and an appraisal. Furthermore, lenders often require that homes pass an inspection before lending any money towards purchasing one. It’s a part of the escrow process so it’s advisable that buyers familiarize themselves with its terms before starting their search for properties.


If you are selling your home, it is essential that you understand the process and costs associated with home inspections. A potential home buyer will require an in-depth and complete report so they can negotiate for the best price when making their offer on it.

According to the results of their inspections, homebuyers may request repairs and maintenance be completed before offering to buy. Others will simply reduce the price. It’s essential that you hire a real estate agent who can assist in setting the appropriate selling price of your property.

Under New York law, owners must disclose any known issues on a standardized disclosure form or pay a credit to the buyer. While this may protect you from liability in most instances, it’s a good idea to consult an attorney and understand all available options before making a decision. You may choose not to make the disclosure at all but still pay your fee without making disclosure if desired; this won’t protect against liability as homebuyers often conduct home inspections themselves after making offers and accepting terms – which could extend closing times significantly and increase in-contract periods significantly.