When you decide to sell, it's natural to zero in on one number: the final sale price. With demand still healthy in most markets, plenty of homeowners are wondering how much they can walk away with. But the offer on the table is only one line in the equation. To understand what you'll really net, you also need to account for commissions, routine selling costs and a few financial terms that tend to surface once offers start arriving.

Below, I've worked through the money questions I hear most often from sellers, so you can go into your sale with clear expectations.

How Are Real Estate Commissions Structured?

A commission pays for much more than a sign in the yard. A skilled listing agent works to get top value for your home, manages a mountain of paperwork, negotiates on your behalf and serves as your advocate from listing to closing. That same commission also funds many of the costs required to get the deal done.

You and your agent agree on the commission when you sign the listing agreement. Most often it's figured as a percentage of the sale price, although some agents charge a flat fee instead. On average, commissions land somewhere between 5% and 8% of the price, and the agent is paid once the sale is complete.

Where the Commission Goes

  • The brokerage's share: Every agent works under a sponsoring broker, and that brokerage keeps a portion of each commission. In exchange, the agent gets an established brand, training and mentoring, a professional network and access to the MLS. These splits differ quite a bit and can reach 50/50.
  • The buyer's agent: Buyers generally don't write a check to their own agent. Instead, the buyer's agent is compensated through a share of the listing agent's commission, and the size of that share varies too.

Costs Your Listing Agent Usually Covers

  • Professional photos: Images from an experienced photographer rather than snapshots from a smartphone.
  • Video walkthroughs: What used to be an extra has become an expectation since 2020.
  • Digital marketing: A dedicated property page, social media promotion and content like email newsletters and paid online ads.
  • Traditional marketing: Printed brochures and flyers, open houses and community outreach.
  • Day-to-day business costs: Travel, office supplies and other expenses of running the business.
  • Referral fees: Some agents compensate the people who send new clients their way.

Will Selling My Home Affect My Taxes?

Possibly. Whatever profit remains after qualifying expenses and paying off your mortgage may be considered a capital gain. The good news is that a large share of that profit is often shielded. Single sellers can exclude the first $250,000 of gain, and married couples who file jointly can exclude up to $500,000.

To use the exclusion, the property has to be your primary residence rather than an investment, and you need to have lived there for at least two of the five years leading up to the sale. Any gain beyond the exclusion is taxable. Property taxes you've paid continue to be deductible, subject to the $10,000 cap on state and local tax (SALT) deductions.

Which Selling Costs Can I Deduct?

Selling costs aren't handled like ordinary income tax deductions. Instead, they're subtracted from your sale price, which shrinks the gain you may owe tax on. To count, an expense must be directly connected to the sale and can't involve physical work on the house.

  • Costs that typically qualify: advertising, appraisal fees, attorney fees, title search fees and the broker's commission.
  • Costs that typically don't: hiring painters or landscapers.

Home improvements work a little differently: they increase your tax basis. Say you paid $300,000 for your home and later put $10,000 into an improvement. Your basis becomes $310,000, and your capital gain is the sale price minus that figure.

Due Diligence Money vs. Earnest Money: What's the Difference?

Both are negotiable and both are separate from the purchase price, but they do different jobs.

Due Diligence Money

This is a non-refundable payment the buyer makes to the seller for the due diligence period spelled out in the Offer to Purchase contract. During that window, the buyer arranges inspections, the appraisal and final loan approval. The payment compensates you for taking your home off the market while other buyers are kept waiting. The buyer is free to walk away for any reason before the period ends; if they move forward, the amount is normally credited back to them at closing.

Earnest Money

Earnest money is a good-faith deposit, usually 1% to 3% of the purchase price, that signals the buyer is committed. After the offer is accepted, the funds sit in escrow until closing according to the contract terms. Because the buyer has money at stake, it's harder for them to back out, which protects you from having to put the house back on the market. When everything goes smoothly, the deposit is applied to the buyer's down payment or closing costs. If the deal falls through for a covered reason, such as an inspection problem or an unmet contingency, the buyer gets it back.

Why Doesn't My Assessed Value Match My Market Value?

Market Value

Market value is essentially what your home would sell for today given current conditions, and it's the basis for the list price your agent recommends. It reflects your location, the condition inside and out, recent sales of comparable homes nearby and any upgrades you've made. Above all, it's driven by what buyers are looking for.

Assessed Value

Assessed value is set by your town for tax purposes. It considers factors like improvements and any income the property produces, and it frequently comes in below market value. This is the figure that determines your property tax bill.

Let's Plan Your Numbers Together

Getting comfortable with the financial side of selling helps you anticipate costs, budget for expenses and negotiate with confidence. When you know where every dollar is headed, it's much easier to plan what comes next. If you're thinking about selling, reach out to me and we'll walk through your numbers together.