When selling your home, it’s essential to recognize that you won’t take home the full sale price due to various fees and deductions. These expenses, which can amount to as much as 7% of the sale price, include commissions, taxes, and miscellaneous costs.

Determining your net profit involves understanding and accounting for these deductions. Your real estate agent will provide you with a Seller’s Estimated Net Proceeds worksheet upon receiving an offer. This document outlines all the costs that will be subtracted when you close the sale.

Here are some typical costs deducted from the sale price, though they may vary depending on your state:

1. Mortgage payoff balance, encompassing your home loan, second mortgages, and home equity lines of credit.
2. Loan payoff fee, an administrative charge from your lender to close your loan.
3. Lien release document fees for settling outstanding obligations like contractor payments, court judgments, or property taxes.
4. Prepayment penalties, if applicable for paying off your loan early.
5. Recording fees to show previous loans have been paid.
6. Commissions for agents, which is negotiable.
7. Notary fees for document verification.
8. Escrow fees for the protection of funds during negotiations.
9. Title search fees to ensure the property is free of issues.
10. Seller concessions, where a portion of the sale price is returned to cover the buyer’s closing costs.
11. Repair costs, either required by the buyer or lender.
12. Home warranty payments requested by the buyer.
13. Termite letter fees, if required by state regulations.

It’s crucial to consult your real estate agent to anticipate and prepare for any additional costs not mentioned here. This proactive approach ensures a smoother transaction and helps you accurately estimate your net profit from the sale.