{"id":10325,"date":"2019-05-13T13:09:11","date_gmt":"2019-05-13T20:09:11","guid":{"rendered":"https:\/\/www.homelight.com\/blog\/?p=10325"},"modified":"2025-09-17T09:58:15","modified_gmt":"2025-09-17T16:58:15","slug":"sell-house-for-cash-net-proceeds","status":"publish","type":"post","link":"https:\/\/www.homelight.com\/blog\/sell-house-for-cash-net-proceeds\/","title":{"rendered":"A Crash Course in Net Proceeds"},"content":{"rendered":"

For many, buying a house is emotional, but selling one is all about the money. So it\u2019s expected that you\u2019ll want to command the highest possible price point for your house. But before you turn your nose at a \u201clowball\u201d offer\u2014be sure to do the math on net proceeds<\/a>, rather than get starry-eyed over a price marked by hidden asterisks.<\/p>\n

Selling a house isn\u2019t like putting your couch up for sale on Craigslist where you set a price of $200, and pocket a full $200 in return.<\/p>\n

With an asset as big as your home, you have to account for a number of associated costs\u2014such as agent commissions, taxes, home prep, and title fees\u2014before you can realistically grasp your take-home money from the sale. In fact, the average seller can expect to shell out between 7%-12% of their home\u2019s value to sell a house.<\/p>\n

To put that in perspective, a recent Zillow analysis estimates that it costs nearly $21,000 to sell a home in 2019<\/a>. Moreover, while many sellers budget for those 5%-6% agent commissions, they often forget to account for extra fees that can bring the actual cost up to around 10% of the sale price<\/a>, according to Opendoor.<\/p>\n

This boils down to the difference between two key figures for sellers: sale price (the total amount of money paid for the house) versus net proceeds (the money you\u2019ll actually see in your bank account).<\/p>\n

When you make a decision on which offer to go for, you need to look at your <\/span>net proceeds<\/b> first and foremost. From there, you\u2019ll be able to see whether the cash offer is more competitive than you originally thought (or if it\u2019s just not worth the sacrifice). <\/span><\/p>\n

We\u2019ll break down the costs and walk through a helpful case study to tie it all together. <\/span>First, let\u2019s review the various expenses you can expect to be on the hook for\u2014get that checkbook ready!<\/p>\n

\"A<\/a>
Source: (Shopify Partners\/ <\/a>Burst<\/a>)<\/figcaption><\/figure>\n

Market preparations (~1%)<\/h3>\n

Your average buyer isn\u2019t going to put an offer on a house based on its \u201cpotential.\u201d To book showings and generate strong offers, you\u2019ll need to whip the house into presentable condition. At a bare minimum this requires decluttering the house to make each area feel spacious and organized, and then deep cleaning like the queen is coming over.<\/p>\n

Depending on what your agent recommends, you also might need to paint the walls, replace dated flooring, and make any repairs around the house that would cause buyers pause (like leaky faucets or sticky doors).<\/p>\n

Agent commissions (~5%-6%)<\/h3>\n

Agent commissions are by far the biggest line item on a seller\u2019s list of expenses, totaling 5%-6% of the total sale price.<\/p>\n

Commission rates are agreed to when you sign the listing agreement with your agent. Then, at closing, a portion of that commission (usually half, or about 3% of the sale price) goes to the buyer\u2019s agent as a result of them bringing a buyer to the sale.<\/p>\n

Closing costs (~1%-3%)<\/h3>\n

Sellers should expect to pay an additional 1%-3% in closing costs, depending on the price of the home, state and local rates for taxes and recording fees, and customary charges for your individual region, all of which you won\u2019t have too much control over.<\/p>\n

Additional costs for renovations, home repairs from the inspection, or seller\u2019s concessions (varies)<\/h3>\n

Every home sale is different, but you should budget for extra expenses if you plan to do any renovations to improve home value, need to pay for repairs that crop up in the home inspection, or make a concession like agreeing to cover the buyer\u2019s title search costs or home warranty.<\/p>\n

Case study: How do the numbers shake out on a cash vs. market value offer?<\/h2>\n

In the chart below, you can see a breakdown of net proceeds on two different offers: one from a cash buyer, and another as an estimation of what the seller could likely fetch with an agent-assisted sale.<\/p>\n