One of the most common questions sellers ask is: "How much will I actually walk away with?" It's an important question, because the sale price isn't the same as your net proceeds. Several costs come out of your sale before you receive your check at closing.
Here's a clear breakdown of what to expect when selling a home in the San Francisco Bay Area.
Real Estate Commission
The commission is typically the largest single cost of selling. It's paid from the sale proceeds at closing and covers both the listing agent's and the buyer's agent's services. Commission rates are negotiable — there's no fixed or standard rate.
I'll explain exactly what's included in my services and how the commission is structured before we list. There should be no surprises.
Transfer Taxes
County Transfer Tax
In most Bay Area counties, the seller pays the county transfer tax, which is typically $1.10 per $1,000 of the sale price. On a $1.5 million home, that's $1,650.
City Transfer Tax
Many Bay Area cities also charge a city transfer tax, and the amount varies significantly. For example, San Francisco, Oakland, and San Jose all have city transfer taxes that can be substantial. In some cities, this cost is split between buyer and seller; in others, the seller pays it all. I'll clarify what applies in your city.
Escrow and Title Fees
Escrow fees cover the neutral third party that handles the transaction. Title fees cover the owner's title insurance policy (which the seller typically pays in the Bay Area) and related title services. These costs are based on the sale price and vary by escrow company.
Home Preparation Costs
Depending on your home's condition, you may choose to invest in preparation before listing. This can include:
- Repairs — addressing deferred maintenance or issues that could scare off buyers.
- Staging — furnishing and decorating to help buyers envision the space.
- Professional photography — high-quality photos are essential for online marketing.
- Pre-listing inspection — identifying issues upfront so there are no surprises during escrow.
- Retrofit requirements — California requires certain safety upgrades before a home can be sold.
If your home needs repairs but you don't want to pay upfront, I offer a program that funds high-impact upgrades at no cost to you until closing. Ask me about the fix-and-list option.
Outstanding Mortgage and Liens
Your remaining mortgage balance will be paid off from the sale proceeds at closing. If you have a second mortgage, HELOC, or any liens on the property (such as unpaid property taxes or judgments), those will also be paid from the proceeds.
Prorations and Credits
At closing, certain costs are prorated between you and the buyer:
- Property taxes — you pay your share for the time you owned the home.
- HOA dues — if applicable, prorated for the current period.
- Rent — if the home is tenant-occupied, rent is prorated through closing.
You may also agree to credit the buyer for certain costs as part of your negotiation — such as repair credits or seller concessions. I'll help you evaluate these during the offer review process.
Capital Gains Tax (If Applicable)
If your home has appreciated significantly, you may owe capital gains tax. However, primary residence exclusions can shield a significant amount of profit from federal taxes. I recommend consulting a tax professional to understand your specific situation — I can connect you with trusted CPAs who serve Bay Area homeowners.
How to Estimate Your Net Proceeds
The best way to understand what you'll walk away with is a personalized net sheet. I'll prepare one based on your estimated sale price, your remaining mortgage balance, and all applicable costs — so you can see exactly where every dollar goes before you commit to selling.