Before you call an agent or put a sign in the yard, you need one number: what actually lands in your pocket if you sell today. It is not your home's market value minus what you owe — there are several costs in between that catch first-time sellers off guard.
Start with your payoff, not your original loan balance
Your mortgage statement shows your current principal balance, but that is not what it costs to pay off the loan. A payoff includes per-diem interest through the closing date and can differ from your statement balance by a meaningful amount depending on when in the month you close. You request an official payoff statement from your servicer, not your original lender, if the loan has been transferred.
The rough math
Commission is negotiable, and the rules changed in 2024
For covered NAR MLS practices effective August 17, 2024, offers of buyer-broker compensation are prohibited on the MLS and may be negotiated off it. Compensation was negotiable before and remains negotiable; a seller contribution is possible, not automatic or required. Check the actual listing and buyer agreements.
Don't forget these often-missed costs
- Prorated property taxes: Use the actual contract, tax period, bills and local settlement rules to determine debits or credits. Do not assume every jurisdiction collects the same way.
- HOA transfer or resale fees: Include the association’s actual applicable charges; a generic $200–$500 range is not a verified local quote.
- Any concessions you agree to: buyer closing cost credits or repair credits negotiated after inspection.
- Moving costs: not part of the transaction, but real money leaving your pocket in the same window.
If the math doesn't work
A sale price below all lien payoffs and selling costs creates a cash shortfall, even when the property value exceeds the first loan’s principal balance. Negative equity usually refers to debt exceeding value. Additional funds or an approved lienholder arrangement may be needed; proceeds do not establish a profit or loss without acquisition and ownership costs.
Commission rates and closing costs vary by market, agent, and state. This is a planning tool, not a guarantee of your actual proceeds — get a real payoff statement and a comparative market analysis from a local agent for accurate numbers.