Underestimating Selling Costs

One of the most expensive mistakes is not knowing what it actually costs to sell your home until it’s too late. You’re not negotiating the sale price—you’re negotiating what ends up in your pocket after all costs are paid. When selling, you’ll face agent commissions, title insurance, escrow fees, transfer taxes, recording fees, document prep fees, possible buyer concessions, repairs or mandatory fixes, and more depending on your location. Some costs are small, others substantial, but they all add up and directly affect your net proceeds. Before listing, your agent should provide a detailed Seller’s Net Sheet estimating total costs and your true bottom line based on likely sales price—this isn’t optional, it’s basic real estate service. You need to know what you’re walking away with because that net number is what you’re really negotiating. If you’re planning to use proceeds for your next home purchase, understanding your actual bottom line is crucial for making smart decisions. A price might sound good, but if you’re paying more in fees and repairs than expected, that “great deal” may not be so great. Always demand full transparency about costs upfront so there are no surprises at closing.