Watch the breakdown on this topic from the First Responder Realtor channel.
Why is net proceeds the only number that matters?
Sale price is what the buyer pays. Net proceeds is what you keep. They are not the same number, and the gap between them can be shocking if you have never sold before. Commission, escrow, title, transfer tax, mortgage payoff, repair credits, prorated taxes, and HOA fees all come out before you see a dollar.
A home that sells for $900,000 might net the seller $750,000 or $780,000 depending on the commission model, the closing costs, and how aggressively those costs were negotiated. That $30,000 difference is not theoretical. It is the difference between a percentage agent who never questions a line item and a $17,000 fixed fee agent who fights for every dollar.
What is the formula for calculating net proceeds?
Start with the sale price. Subtract everything that comes out at closing:
| Line Item | $900K Example (2.5% agent) | $900K Example ($17K fixed) |
|---|---|---|
| Sale Price | $900,000 | $900,000 |
| Listing Commission | $22,500 | $17,000 |
| Buyer Agent (2.5%) | $22,500 | $22,500 |
| Escrow + Title | $6,200 | $5,400 (negotiated) |
| Transfer Tax | $990 | $990 |
| Mortgage Payoff | $380,000 | $380,000 |
| Prorated Taxes/HOA | $2,800 | $2,800 |
| Net to Seller | $465,010 | $472,310 |
| Difference | +$7,300 more |
That $7,300 difference comes from two places: $5,500 saved on the listing commission and $800 saved on negotiated vendor fees. On a higher-priced home, those numbers grow. On a $1.5M home, the listing commission savings alone hit $20,500.
What do most sellers forget to subtract?
Repair credits after inspection. This is where sellers lose the most unexpected money. A buyer's inspection turns up a roof issue, a plumbing leak, or an electrical panel that needs upgrading. The buyer requests $15,000 in credits. Your agent says "we should probably give it to them to keep the deal together." That is $15,000 that just disappeared from your net.
A sellers-only agent with no buyer relationship has zero incentive to make the deal easier at your expense. Every repair credit is a negotiation, not a concession. The question is not "should we give it?" The question is "how much of this is legitimate and how much is the buyer testing our willingness to fold?"
How do I get a personalized net sheet for my home?
Run your numbers at SCV123.com to get a Seller Intelligence Report for your neighborhood. Or call 661-400-1720 for a personalized net sheet that shows your actual take-home under both commission models. The conversation is free. The math is permanent.
Related Reading
Hidden Costs of Selling a Home That Agents Never Mention Do I Still Have to Pay the Buyer's Agent? Fixed Fee vs. Percentage: Side-by-Side ComparisonFrequently Asked Questions
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