Seller Net Proceeds With a 1% Commission: Estimate What You Keep

The short answer

Your net proceeds are what's left after you subtract every cost of the sale from your final sale price. The working formula is:

Net proceeds = Sale price − mortgage payoff − 1% listing fee − any buyer-agent compensation you agree to pay − seller closing costs − credits and concessions

A 1% listing fee shrinks one of the largest line items on that list, but it is not the only cost. To know what you actually walk away with, you also have to account for what you still owe on the home, the taxes and fees your county and state charge to transfer the property, and anything you negotiate with the buyer. Every dollar figure below varies by location and by deal, so treat this as a framework rather than a quote — and confirm the specifics with a title or escrow officer, a closing attorney, or your agent before you rely on a number.

Step 1: Subtract what you still owe

Your sale price is not your starting cash. The first and usually largest deduction is your mortgage payoff — and that is not the same as the balance shown on your last statement. A payoff quote from your lender includes per-diem interest accrued up to the closing date and can include a small processing or reconveyance fee. Request an official payoff good through your expected closing date so the number is exact.

Then subtract anything else secured against the property: a second mortgage or HELOC, a home-equity loan, tax liens, contractor (mechanic's) liens, or judgments. These are paid from your proceeds at closing before you receive a cent.

Step 2: The commission math under a 1% listing fee

What the 1% covers

A 1% listing fee is the compensation for the brokerage representing you, the seller — marketing, pricing, MLS entry, showings, and negotiation. On the illustrative sale below, 1% of the sale price is the entire listing-side cost. This is the line item Home Stimulus's 1% listing service is designed to compress relative to a traditional listing-side rate; whether that saving is meaningful for you depends on your price point and local norms.

The buyer's agent is a separate, negotiable line

This is where many net-proceeds estimates go wrong. Historically, a seller often paid both the listing and buyer-side commissions out of one number. Following industry practice changes that took effect in 2024, offers of buyer-broker compensation are no longer published on the MLS, and whether — and how much — a seller pays the buyer's agent is openly negotiable. In some transactions the buyer compensates their own agent; in others the seller agrees to a credit or a set amount. Because this is negotiated per deal and varies by market, budget for it as its own line and do not assume a fixed percentage. See the National Association of Realtors for how these changes work in practice.

Step 3: Seller closing costs that vary by county and state

These are the costs the "1%" headline never includes, and they differ dramatically depending on where the property sits.

Transfer, conveyance, and recording taxes

Many states and counties charge a tax to record the deed — variously called a transfer tax, documentary transfer tax, conveyance tax, or excise tax — plus flat recording fees. Rates, and even whether the tax exists at all, are set locally: some states impose none, while others layer state, county, and city charges on the same sale. Who customarily pays (buyer, seller, or split) also varies by local custom and is negotiable. Look up your specific rate on your county recorder or assessor-recorder's site before estimating; for example, the San Francisco Office of the Assessor-Recorder publishes its transfer-tax schedule, and every county maintains its own.

Title, escrow, settlement, and attorney fees

Depending on your state, closing runs through a title/escrow company or a real-estate attorney, and the seller's share of those fees follows local custom. In many areas the seller pays for an owner's title insurance policy for the buyer; in others the buyer does. Expect line items for settlement/escrow fees, a deed-preparation or attorney fee, and possibly a wire or courier fee. All of these vary by state and provider.

Property tax and HOA prorations

Property taxes are prorated to the closing date, so you pay for the days you owned the home during the period. If you belong to a homeowners association, expect prorated dues plus a transfer or document fee. These are true costs but are usually modest relative to payoff and commission.

Credits and concessions you negotiated

If you agreed to cover repairs, a portion of the buyer's closing costs, or a home warranty, those come out of your proceeds too. Keep them on your worksheet.

An illustrative walk-through

The numbers below are hypothetical and rounded for illustration only — not market data, not a quote. They show how the lines stack up, not what any figure will be for you. Costs marked "varies" depend entirely on your county, state, and negotiation.

The takeaway: on a home with substantial equity, the 1% listing fee is often one of the smaller deductions. Payoff dominates, and the county- and state-driven costs are the ones most people underestimate.

Don't forget the tax on your gain

Net proceeds at closing are not always the same as what you keep after tax season. If your home sold for more than your adjusted cost basis, you have a capital gain. Many sellers of a primary residence qualify to exclude a significant portion of that gain from federal income tax under the IRS primary-residence exclusion, provided they meet the ownership and use tests. Limits differ for single versus married-filing-jointly sellers, and the exclusion does not automatically apply to investment or second homes. Confirm your situation against IRS Publication 523 or with a tax professional. State income tax on the gain may also apply and varies by state.

How to get an estimate you can trust

• Ask for a written seller net sheet. Your agent, or a title/escrow company, can prepare an itemized estimate for your specific property and price. This is the single most reliable way to see all local line items in one place.
• Get an official payoff quote from your lender, good through your expected closing date — not just your statement balance.
• Look up your county's transfer tax and recording fees on the county recorder or assessor site, and confirm who customarily pays in your area.
• Confirm the buyer-agent arrangement in writing as part of your listing and offer negotiations, since it is no longer a fixed or assumed cost.
• Run the capital-gains question early if your gain might be large, so a tax bill doesn't surprise you after closing.

Because transfer taxes, title customs, and commission arrangements vary so widely — and recent commission-practice rules are still settling in — treat any online calculator as a starting point and have the specifics reviewed by a local real-estate professional, title/escrow officer, or attorney before you make decisions based on the number.