Seller costs & net proceeds · From List to Sold
What It Costs to Sell Your Home, and What You Could Walk Away With
Your sale price isn’t what you take home. Loan payoffs, selling costs, negotiated credits and taxes all come out first. This guide explains each piece in plain language, so you can understand your Seller Net Sheet before you list and read escrow’s final figures with confidence.
From brokers Michael & Anita Marchena · 400+ home sales with buyers and sellers across Southern California · Last updated: October 3, 2026
The net-proceeds formula
How a sale price becomes the money you keep
Every estimate follows the same basic order. The amounts are different for every home, but the categories rarely change. Items marked “if applicable” only appear when they apply to your property or your agreements.
Start with
Sale price
The price in your accepted contract.
Minus
Payoffs and liens
Mortgage, HELOC and any other recorded liens.
Minus
Broker compensation
Set by your listing agreement and any buyer-side terms you agree to.
Minus
Title and escrow
Your share of title and escrow charges, by custom and contract.
Minus
Transfer tax
Documentary transfer tax, which depends on where the home is.
Plus or minus
Property taxes and prorations
Charges split by the closing date. Can be a charge or a credit.
Minus, if applicable
HOA and special assessments
HOA documents and transfer charges, unpaid dues and special assessments.
Minus, if applicable
Credits and repairs
Only what you negotiate with the buyer.
Minus, if applicable
Solar, PACE and other obligations
Solar loan or lease terms, PACE and other property-specific items.
Equals
Estimated net proceeds
What escrow pays you after closing. Money you spent getting ready to list is paid separately.
An estimate, not a promise
A net sheet is an estimate based on the information available at the time. Escrow provides the final settlement figures once payoff demands, title charges, prorations and any credits are final.
What comes out of seller proceeds
The costs that commonly come out of a sale
Not every sale has every item below, and who pays some of them is negotiable. Use this as a checklist of questions to ask, not a list of fixed charges.
Loans and liens
Mortgage and HELOC payoffs, including interest to the payoff date, plus any other recorded liens or judgments.
Broker compensation
Set by your listing agreement and any compensation or concessions you agree to for the buyer’s side. Negotiable.
Government charges
Documentary transfer tax and recording charges. The amount depends on where the property is.
Title and escrow
The owner’s title policy, escrow fees and related charges, divided according to your contract.
Taxes and prorations
Property taxes and other charges split between you and the buyer as of closing.
HOA and special taxes
Association disclosure documents, transfer-related charges, unpaid dues and special assessments.
Repairs and credits
Repairs or credits you agree to after inspections, and any closing-cost credit you offer a buyer.
Required safety items
California requires items such as smoke alarms and water-heater bracing at sale; some cities add their own requirements.
Solar, PACE and other contracts
PACE payoffs, solar loan payoffs, or a lease or power purchase agreement that must be transferred or bought out.
Costs you pay before closing, such as preparation, staging or moving, don’t appear on escrow’s settlement statement but still affect what you keep.
What decides each cost
Law, contract, local custom or your property?
Some seller costs are set by law, some by the agreements you sign, some by local custom, and some by the property itself. Knowing which is which tells you what you can negotiate and what you simply need to plan for. Local custom is a starting point, not a rule.
| Listing-side broker compensation | Contract. Set in your listing agreement. Negotiable, not fixed by law. |
| Buyer-side compensation or buyer credits | Contract. Only if you agree to it in a specific sale. Not automatic. |
| Owner’s title insurance | Local custom (seller pays in Riverside and San Diego counties). Your contract controls. |
| Escrow fees | Local custom (split between buyer and seller). Your contract controls. |
| Documentary transfer tax | Required by law when the deed records. Who pays is custom (seller) and contract. |
| Loan payoffs and liens | Property-specific. Recorded loans and liens are paid or resolved so the buyer gets clear title. |
| Property-tax prorations | Contract and calendar. Split by closing date; can be a charge or a credit. |
| HOA documents | Required by law to provide; the association may charge the seller its actual cost. |
| Mello-Roos and special assessments | Property-specific. Disclosure is required by law; most special taxes continue with the property. |
| Solar loans, leases and PACE | Property-specific. Depends on how the system or improvement was paid for. |
| Smoke alarms, CO devices, water-heater bracing | Required by law (compliance items, not escrow fees). |
| Repairs and credits after inspections | Negotiated. Only what you agree to. |
| Home warranty | Optional, if offered or negotiated. |
| Preparation and staging | Optional, paid before listing, outside escrow. |
| California withholding | Required by law unless an exemption applies. A prepayment, not a fee. |
Custom shown for Riverside County; San Diego County is the same for these items. Your purchase contract controls who pays what.
Broker compensation
How broker compensation works now
There is no standard commission. In California, a listing agreement for a home with up to four units must say: “The amount or rate of real estate commissions is not fixed by law. They are set by each broker individually and may be negotiable between the seller and broker.” (Business and Professions Code §10147.5)
Your listing agreement
The compensation you pay your own listing broker, and the services you receive, are set in your written listing agreement. Read it, ask questions, and make sure you understand it before you sign.
The buyer's side
Buyers now sign a written agreement with their own agent that sets that agent’s compensation. A seller may choose to pay some or all of it, offer a credit toward the buyer’s costs, or do neither. Offers of buyer-broker compensation can’t be posted on the MLS, but sellers can still offer them off the MLS, and can offer buyer concessions such as closing-cost credits. (NAR: what the settlement means for buyers and sellers)
Decided transaction by transaction
What you agree to pay, and whether you contribute to the buyer’s side, depends on your agreements, the market and the offers you receive. We’ll walk you through the options and how each one changes your estimate before you decide.
This is general information, not legal advice. Your agreements control, so read them carefully and ask a real estate attorney if you have legal questions.
Mortgage payoff and liens
Paying off what's recorded against the home
Escrow orders a payoff demand from each lender and pays it from your proceeds at closing, so the buyer receives clear title. The payoff is usually more than the principal balance on your last statement, because it includes interest through the payoff date and any fees the lender is allowed to charge.
First mortgage
Your loan balance plus interest to the payoff date. If your loan documents include a prepayment charge, it will appear on the demand.
HELOC or second loan
Lines of credit are paid off and closed at sale. Avoid new draws once you’re in escrow.
Other liens
Tax liens, judgments, mechanic’s liens, PACE assessments or unpaid HOA amounts may need to be paid or resolved before closing. The preliminary title report shows what’s recorded.
If you owe more than the home may sell for
Tell us early. A sale where the payoffs exceed the proceeds needs your lender’s involvement and more time, and may have credit and tax consequences to discuss with your lender and tax professional.
Transfer tax and recording
Documentary transfer tax depends on where the home is
California counties charge a documentary transfer tax when a deed is recorded, and some cities add their own. Riverside County charges $0.55 per $500 of value ($1.10 per $1,000), figured on the value excluding liens that stay on the property. Cities such as Temecula, Murrieta, Menifee, Lake Elsinore, Wildomar, Canyon Lake and Corona charge a city tax that’s credited against the county’s, so the total there is still $1.10 per $1,000. The same total applies in unincorporated areas such as Winchester, French Valley and Temescal Valley. San Diego County also charges $1.10 per $1,000.
| Location | Combined transfer tax | Per $100,000 of value |
|---|---|---|
| Temecula, Murrieta, Menifee, Lake Elsinore, Wildomar, Canyon Lake, Corona and unincorporated areas | $1.10 per $1,000 | $110 |
| City of Riverside (illustration only) | $2.20 per $1,000 | $220 |
The City of Riverside column is here only to show how a city’s own tax can change the amount; it isn’t one of our main seller-guide areas. Title-company guides list the county transfer tax as a seller cost by custom in Riverside and San Diego counties, but your contract decides who pays. Escrow calculates the exact amount for your address, and our local seller guides note the rate for each area we cover.
Sources: Riverside County Assessor-County Clerk-Recorder · California City Finance transfer-tax table (effective Dec. 1, 2025) · San Diego County Recorder. Checked October 2, 2026.
Title and escrow
Title insurance and escrow fees
Owner's title policy
Local custom: seller pays. The California Department of Insurance notes that in Southern California the seller customarily pays the owner’s title premium, and title-company guides list Riverside and San Diego counties that way. Your purchase contract controls. Each title company files its own rates, so premiums differ.
Lender's title policy
Separate. When the buyer gets a loan, the lender requires its own title policy to protect the lender. It’s a different policy from the owner’s policy, and who pays it is set by the contract.
Escrow fees
Local custom: split. Title-company guides list escrow fees as split between buyer and seller in Riverside and San Diego counties. Your contract controls, and the fee depends on the escrow company and the price.
Recording, reconveyance and payoff handling
Smaller seller-side items can include recording the release of your loan (reconveyance), payoff-demand and wire fees, notary and courier charges. Amounts vary by lender and company; ask escrow for an estimate.
Sources: California Department of Insurance: title insurance · First American: who pays what in California · Fidelity National Title: who pays what (rev. 3/2023) · Old Republic Title: guide to closing costs (11/2023). Each guide notes that customs can be negotiated.
Taxes and prorations
Property taxes, prorations and tax questions
Property tax prorations
California property taxes run on a July–June fiscal year. The first installment is due November 1 and delinquent after December 10; the second is due February 1 and delinquent after April 10. Escrow splits the year’s taxes, including any Mello-Roos special tax on the same bill, by the closing date. Depending on what you’ve already paid, the result is a charge or a credit. (Riverside County Treasurer-Tax Collector)
California withholding
On some sales, escrow must withhold part of the proceeds and send it to the Franchise Tax Board: generally 3⅓% of the sale price, unless an exemption applies. Common exemptions include a home that was the seller’s principal residence and sales of $100,000 or less. (FTB 2026 Form 593 instructions)
Capital gains
A gain on the sale may be taxable. Federal rules let qualifying owners exclude up to $250,000 of gain, or $500,000 for many married couples filing jointly, if they meet ownership and use tests. Whether you qualify depends on your situation. (IRS Topic 701)
Rentals, inherited homes and trusts
Tax treatment can be very different for a rental, a second home, an inherited home or a sale by a trust. Bring these questions to your tax professional early, before you set your price and timeline.
Withholding at closing is not your final tax bill
California real estate withholding is collected through escrow at closing unless an exemption applies. It works like a prepayment toward the seller’s California income tax for the year. The seller’s actual tax result is figured later, on their own return, and depends on their individual circumstances; it may be more, less or nothing. We can’t calculate it or tell you whether an exemption applies. Talk with a qualified tax professional.
HOA, Mello-Roos and special assessments
Costs that come with an HOA or special-tax district
HOA documents and transfer charges
The seller provides the buyer with the association’s governing documents, budget and other required disclosures, and the association may charge the seller a reasonable fee based on its actual cost. Associations generally can’t charge a transfer fee beyond their actual cost to change records and those document fees, with limited exceptions for certain older community organizations. (Civil Code §4530 · §4575)
Unpaid balances and special assessments
Dues, fines or HOA special assessments that are due as of closing are paid from escrow. How an assessment that’s billed over time is handled depends on the association and your contract.
Mello-Roos and other special taxes
Many newer Southwest Riverside County communities have Mello-Roos (CFD) special taxes. They’re usually billed on the property tax bill, prorated at closing and continue with the property; a sale doesn’t normally pay off the whole remaining obligation. The seller must give the buyer a notice about them. (Civil Code §1102.6b)
1915 Act bonds and PACE
Some assessments work differently. A bond assessment may have a payoff option, and PACE often has to be paid off for the buyer or the buyer’s lender. Ask for the payoff and terms early.
Amounts and rules vary by community. Check your HOA statements and property tax bill, and ask escrow how each item will be handled.
Repairs, inspections and credits
Preparation costs vs negotiated costs
It helps to separate what you choose to spend before you list from what you agree to during escrow. There’s no standard repair bill; it depends on the home and the negotiation.
Before you list (your choice)
- Cleaning, paint, landscaping and small repairs
- Staging or photography costs not covered by your listing services
- Optional pre-listing inspections
- Moving and storage
These are paid as you go, outside escrow. Not every home needs much. How we prepare and market a home.
During escrow (negotiated)
- Repairs or credits you agree to after the buyer’s inspections
- A credit toward the buyer’s closing costs, if you offer or agree to one
- A home warranty, if you agree to provide one
- Termite (wood-destroying pest) work, if the contract calls for it
None of these is automatic. Each is a negotiation, and we’ll show you how it changes your estimate before you agree.
Required safety items are compliance, not closing costs
A single-family home sold in California must have an operable smoke alarm, and the seller must certify in writing that the water heater is braced, anchored or strapped. Carbon monoxide devices are required in homes with a fuel-burning appliance, fireplace or attached garage. These aren’t escrow fees: if something is missing, the cost is the device or installation, usually handled before closing. Some cities add point-of-sale rules of their own. (Health & Safety Code §13113.8 · §19211 · §17926)
Solar, PACE and financed improvements
How you paid for solar matters at sale
Owned outright
The system usually transfers with the home. Gather the paperwork, warranties and permits so buyers can see what they’re getting.
Financed with a loan
A solar loan may need to be paid off at closing, and a lender may have filed a notice against the system. Ask your lender for a payoff early.
Leased or PPA
The buyer may need to qualify and take over the contract, or you may need to buy it out. California’s solar consumer guide notes that a buyout “can cost thousands of dollars.” (CPUC solar consumer guide)
PACE assessment
PACE is repaid through your property tax bill and creates a lien until it’s paid off. Buyers and their lenders may require you to pay it off, and the balance can be large. (DFPI: PACE)
Request a payoff or transfer packet from your solar company or PACE administrator before you list, so there are no surprises in escrow. For the full picture, see our guide to selling a home with solar.
Your Seller Net Sheet
Know What You May Walk Away With Before You List
Every sale is different, so we don’t rely on generic closing-cost percentages or online estimates. As part of our listing consultation, we can prepare a personalized Seller Net Sheet that estimates your proceeds based on your expected sales price, loan payoff, broker compensation, title and escrow charges, taxes and prorations, HOA or special assessments, negotiated credits, solar or other liens, and other costs that may apply to your property.
The numbers can change as the sale develops, but the net sheet gives you a much clearer estimate of what you may receive at closing. Escrow will provide the final figures based on the actual transaction.
What your estimate can include, where it applies
- Expected sales price
- Mortgage payoff
- HELOC or other lien payoffs
- Broker compensation
- Title charges
- Escrow charges
- Documentary transfer tax
- Property-tax prorations
- HOA document and transfer charges
- Mello-Roos or special assessments
- Negotiated buyer credits
- Agreed repairs
- Solar payoff or transfer
- PACE
- Other property-specific obligations
What we check before we estimate your net
The likely price
Your payoffs
Current loan statements and any HELOC, PACE, solar or other balances, confirmed by payoff demands in escrow.
Your agreements
The listing agreement, any buyer-side compensation or concessions, and the contract terms you accept.
The location
Transfer tax, HOA and special-tax rules, and local requirements for your exact address.
The calendar
The closing date changes interest, tax and HOA prorations.
The negotiation
Repairs, credits and terms agreed with the buyer after inspections.
How it works
Step 1
Listing consultation
We look at your home, the likely price range, your loans and your goals, and the terms you’re considering.
Step 2
Your Seller Net Sheet
We prepare an Estimated Seller Net Sheet for your property and go through it with you line by line.
Step 3
Updated as the sale develops
When an offer, credits or repairs change the numbers, we update the estimate. Escrow provides the final figures at closing.
An estimate, not the final statement
A Seller Net Sheet is an estimate, also called an Estimated Net Proceeds Statement. Figures may change during the transaction. We don’t issue the final settlement statement; escrow does, based on the actual transaction.
Your Seller Net Sheet
Want to Know What You Could Walk Away With?
We can prepare a personalized Seller Net Sheet for your property.
Next steps
Planning your next move and local differences
Selling and buying?
Plan your next move
Your estimated proceeds help shape your next purchase: how much you’ll have for a down payment and when it arrives. Sale proceeds are paid after your sale closes, so the timing of both transactions matters. Talk with your lender about financing options for the next home.
Local seller guidance
Costs vary by area
Transfer tax, special taxes, septic and well records, fire inspections and HOA rules differ from one community to the next. Our local seller guides cover what to expect where you live.
Michael & Anita Marchena
Real estate brokers · Marchena Home Team at My Key Real Estate
Who you'll work with
400+ Homes Sold with Buyers and Sellers
Michael and Anita Marchena have helped buyers and sellers with more than 400 home sales across Southern California. They are real estate brokers and lead Marchena Home Team at My Key Real Estate.
Before you list, we’ll prepare your Seller Net Sheet and go through it with you line by line, so you know what’s likely to come out of your sale and why. See how we sell homes.
From a client who sold
“Mike and Anita were so friendly and helpful throughout the house-selling process. They kept us abreast of each update, and guided us through the process seamlessly, which meant a lot to us first-time house sellers! When we had questions, they answered them completely, quickly, and graciously. I so appreciate them both, and highly recommend the Marchena Home Team, whether you’re buying or selling!”
Annie K · Yelp review · first-time sellers
Review quoted as posted on Yelp. Individual experiences vary.
Sources
- California Business and Professions Code §10147.5 (commission notice)
- National Association of REALTORS®: what the settlement means for buyers and sellers
- Riverside County Assessor-County Clerk-Recorder: recording requirements and transfer tax
- San Diego County Assessor/Recorder/County Clerk: recording and transfer tax
- Riverside County Treasurer-Tax Collector: billing and due dates
- Franchise Tax Board: 2026 Form 593 instructions (real estate withholding)
- IRS Topic 701: sale of your home
- Civil Code §4530 (HOA documents and fees)
- Civil Code §4575 (HOA transfer fees)
- Civil Code §1102.6b (special tax and assessment notice)
- Health and Safety Code §13113.8 (smoke alarms)
- Health and Safety Code §19211 (water heaters)
- CPUC: California Solar Consumer Protection Guide
- DFPI: PACE, what homeowners need to know
- California Department of Insurance: title insurance
- California City Finance: city and county transfer-tax rates (effective Dec. 1, 2025)
- First American Title: who pays what in California
- Fidelity National Title: who pays what in California (rev. 3/2023)
- Old Republic Title: guide to closing costs (11/2023)
- Health and Safety Code §17926 (carbon monoxide devices)
Information checked October 2, 2026. This page is general education, not legal, tax or financial advice.
Your estimate
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From List to Sold by Marchena Home Team at My Key Real Estate.
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