Your Home Sale Net Proceeds in California
Reviewed by Guillermo Serafin, Responsible Broker, DRE #01471159 · Serve First Realty Inc., DRE# 02133513 · Updated July 22, 2026
The price your home sells for is not the amount you keep. Between the sale price and your bank account sit a series of costs, commissions, fees, taxes, and payoffs, that together commonly total around 7 to 9 percent of the sale price, before any capital gains tax. Knowing your true net proceeds before you list helps you set realistic expectations and make good decisions about pricing and timing.
What comes out of your sale price
Here is what typically gets deducted from a California seller's sale price:
- Mortgage payoff: the remaining balance on any loans secured by the home.
- Agent commissions: your listing agent's fee, and, if you choose to offer it, buyer-agent compensation, which after the 2024 NAR settlement is now a separate decision rather than an automatic bundled cost.
- Escrow and settlement fees: sellers typically pay about half of the escrow fee.
- Owner's title insurance: in most California counties the seller customarily pays this for the buyer, scaling with the sale price.
- Transfer taxes: county and sometimes city transfer taxes, which vary enormously by location and can be substantial in cities like Los Angeles, Oakland, and San Francisco.
- Prorated property taxes, any concessions or credits to the buyer, and any repairs you agree to.
The commission change
The 2024 National Association of Realtors settlement changed how commissions work. Previously, a seller typically paid one combined commission that was split between the listing and buyer agents. Now, buyer-agent compensation is decoupled and negotiated separately, and sellers are not required to offer it. Many still do, in whole or part, to attract buyers, depending on market conditions. This gives you more control over that cost but also makes it a strategic decision worth discussing with your agent.
Do not forget capital gains tax
Your costs of sale are separate from any capital gains tax you may owe on your profit. If the home was your primary residence, the Section 121 exclusion lets you exclude up to 250,000 dollars of gain if single or 500,000 dollars if married filing jointly, and many sellers owe nothing. Gain above that, or gain on an investment property, is taxable, and California taxes it as ordinary income up to 13.3 percent. Our capital gains guide covers this in detail.
Estimating your net
To estimate your net proceeds, start with your expected sale price, then subtract your mortgage payoff, commissions, escrow and title fees, transfer taxes, and any concessions. What remains is your rough walk-away amount before taxes. Our net proceeds calculator runs this when you enter your own numbers, and Serve First Realty prepares a precise seller net sheet for your specific sale, so you know your real number before you commit to a price or a move.
Frequently asked questions
How do I calculate my net proceeds from selling a home?
Start with your expected sale price and subtract your mortgage payoff, agent commissions, escrow and title fees, transfer taxes, prorated property taxes, and any buyer concessions or repairs. What remains is your rough walk-away amount before any capital gains tax. A net proceeds calculator or a seller net sheet from your agent gives you a precise estimate.
How much are total costs to sell a home in California?
Selling costs commonly total around 7 to 9 percent of the sale price, including agent commissions, escrow and title fees, transfer taxes, and prorated property taxes, before any capital gains tax. The exact figure depends on your commission structure, your city's transfer tax, and whether you offer buyer-agent compensation, which is now a separate decision after the 2024 NAR settlement.
Who pays the buyer's agent commission now?
After the 2024 NAR settlement, buyer-agent compensation is decoupled from the listing commission and negotiated separately, and sellers are no longer required to offer it. Many sellers still choose to offer some or all of it to attract buyers, depending on the market. If a seller does not, buyers may pay their own agent directly. It is now a strategic decision.
Who pays transfer taxes when selling a home in California?
Transfer taxes are customarily paid by the seller in California and vary enormously by location. A county transfer tax applies, and some cities add their own, which can be substantial in places like Los Angeles, Oakland, and San Francisco. On a high-value sale in one of those cities, transfer taxes can add significantly to your costs, so factor your specific city's rate in.
Do I owe taxes on the money I make selling my home?
Possibly. If the home was your primary residence, the Section 121 exclusion lets you exclude up to 250,000 dollars of gain if single or 500,000 dollars if married filing jointly, and many sellers owe nothing. Gain above that, or on an investment property, is taxable, and California taxes it as ordinary income up to 13.3 percent. This is separate from your costs of sale.
Questions about your specific situation?
Serve First Realty and the Ashlar Brands family can help you plan a move, sale, or investment around the tax rules that apply to you. This article is educational, not tax advice.
California DRE# 02133513 Roseville, CA