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The Big One: Agent Commissions
The traditional commission structure of 5–6% of the sale price is under pressure following the 2024 NAR settlement, which required changes to how buyer's agent compensation is disclosed and negotiated. As of 2026, commissions are more negotiable than at any time in modern real estate history.
On a $400,000 home, a 5.5% total commission equals $22,000. Many discount brokers and flat-fee MLS services offer alternatives, though full-service agents argue their marketing and negotiating skill more than pays for the fee on well-priced homes.
Transfer Taxes
Transfer taxes (also called deed stamps or conveyance taxes) are charged by state and sometimes local governments on the transfer of real property. They range from $0 in Florida and Texas to 1.5% in Delaware. In New York City, the combined city and state transfer tax can exceed 1.8% plus the mansion tax on high-value properties. Use our closing cost calculator to see your state's rate.
Title Insurance (Seller's Policy)
In many states, the seller is expected to provide the buyer with an owner's title insurance policy. This typically costs 0.3–0.6% of the sale price. In some states and markets, this cost is negotiated or split.
Settlement and Closing Fees
The escrow or closing company charges a settlement fee, typically $500–1,200. In attorney-required states (NY, MA, SC, and others), attorney fees run $750–2,000.
Calculating Your Net Proceeds
Net proceeds = Sale price − (remaining mortgage balance) − (total closing costs). Use the formula: if you're selling a $400,000 home with $180,000 remaining on the mortgage and $24,000 in estimated closing costs, your net proceeds are approximately $196,000. Run this calculation before listing — many sellers are surprised by how much is consumed by commissions, taxes, and payoff.
