Facebook
X
Pinterest
Copy Link
Understand the costs of selling your home
The cost to sell a home depends on several factors, including the sale price, negotiated fees, and closing expenses. According to the National Association of REALTORS® (NAR), real estate agent compensation is negotiable and not set by law. Sellers may also agree to contribute toward a buyer’s closing costs or other expenses.
In Pennsylvania, sellers must account for realty transfer taxes. The state imposes a 1% transfer tax, and additional local taxes generally apply. The purchase agreement determines how these costs are allocated between buyer and seller. Other expenses may include title-related charges, property tax adjustments, and homeowners association fees. Repairs, staging, and moving expenses should also be considered when estimating your total costs.
Account for your mortgage and other obligations
If you have an outstanding mortgage, its payoff amount is typically deducted from your proceeds at closing. According to the Consumer Financial Protection Bureau (CFPB), the payoff amount may differ from your current loan balance because it includes accrued interest and potentially other charges.
Other obligations, such as a home equity loan or liens against the property, may also need to be satisfied. Sellers should obtain an accurate mortgage payoff estimate and identify any additional debts that must be resolved before ownership transfers.
Calculate your estimated net proceeds
Your estimated net proceeds are the amount remaining after subtracting mortgage payoffs and selling expenses from the final sale price. For example, a $450,000 home sale with a $200,000 mortgage payoff and $30,000 in total selling expenses would leave approximately $220,000.
This amount represents the estimated cash received at closing, not necessarily your profit or taxable gain. Taxes on a home sale are calculated differently and depend on your circumstances. For sellers in Pittsburgh’s North Hills, preparing a detailed net proceeds estimate early can help determine how much money may be available for your next home, retirement, or other plans. Your real estate agent and settlement professional can help prepare and refine this estimate.
Are you thinking about your next move? Do you have more questions? Click here to contact me and plan your strategy.
