When homeowners think about selling their home, they often focus on the sale price.
But the sale price is only part of the equation.
Selling a home involves several costs that many homeowners overlook until they are deep into the process. Understanding these expenses ahead of time allows sellers to estimate their net proceeds more accurately and make better financial decisions about their next move.
For homeowners in Utah, knowing the full cost of selling can help avoid surprises and make the transaction feel far more predictable.
Many homeowners assume that if their home sells for a certain price, that entire amount becomes available to them after the sale.
In reality, several expenses are typically deducted from the sale proceeds at closing.
These may include:
• brokerage commissions
• title and escrow costs
• potential repairs
• buyer concessions
• loan payoff amounts
• prorated property taxes
Understanding these costs early allows homeowners to plan their next purchase, relocation, or financial decision with confidence.
One of the largest expenses when selling a home is typically the commission paid to the brokerages involved in the transaction.
In most home sales, two brokerages are involved:
• the listing brokerage representing the seller
• the brokerage representing the buyer
These commissions compensate the professionals responsible for managing key parts of the transaction, including:
• marketing the property
• coordinating showings
• negotiating offers
• navigating inspections
• managing contracts and deadlines
The commission structure is typically agreed upon before the home is listed and can vary depending on the brokerage and services provided.
In Utah, most home sales involve a title company and escrow services to ensure that the transaction is completed properly.
Typical closing costs may include:
• title insurance
• escrow services
• recording fees
• document preparation fees
These services help ensure that the title transfers correctly and that all parties in the transaction are protected.
While these costs are relatively small compared to the sale price, they are still important to account for when estimating net proceeds.
If the homeowner still has a mortgage on the property, the remaining balance will be paid off as part of the closing process.
This amount is deducted directly from the proceeds of the sale.
In addition to the remaining loan balance, sellers may also see small additional items on the payoff statement such as:
• accrued interest
• payoff processing fees
Understanding the current loan payoff amount is one of the most important steps when estimating net proceeds.
After an offer is accepted, most buyers will conduct a home inspection.
Inspections sometimes reveal issues that were not previously known.
Common examples include:
• HVAC issues
• plumbing repairs
• roofing concerns
• electrical updates
Buyers may request repairs, credits, or concessions based on these findings.
Not every inspection leads to significant costs, but sellers should be prepared for the possibility of addressing repair requests during negotiations.
In some transactions, buyers request concessions from the seller.
These concessions may help cover costs such as:
• buyer closing costs
• interest rate buydowns
• minor repairs
Concessions are negotiated as part of the contract and depend on the strength of the market and the details of the offer.
When buyer demand is strong, sellers may receive offers with few or no concessions. In slower markets, concessions may become more common.
Property taxes are typically prorated at closing between the buyer and seller.
This means the seller pays the portion of property taxes for the time they owned the home during that tax year.
These prorations are usually small compared to the total value of the transaction but still appear on the final closing statement.
While not technically part of the closing process, many homeowners also incur costs related to moving.
These may include:
• moving services
• storage costs
• cleaning or repairs before closing
• temporary housing if the next home is not ready yet
Planning for these expenses can help make the transition smoother.
The best way for a homeowner to understand the financial outcome of a sale is by estimating their net proceeds.
Net proceeds represent the amount remaining after all costs and loan balances are deducted from the sale price.
A simplified version of this calculation looks like:
Estimated Sale Price
− Mortgage Payoff
− Brokerage Commissions
− Title and Escrow Costs
− Concessions or Repairs
= Estimated Net Proceeds
While each transaction is different, calculating net proceeds early can help homeowners plan for their next move.
Before listing a home, many homeowners benefit from answering a few key questions:
• What is my home's likely selling price based on comparable sales?
• What will my estimated net proceeds look like after closing costs?
• What financial goals do I want to accomplish with this sale?
• How does selling now compare with waiting?
Thinking through these questions ahead of time can make the entire process feel far more manageable.
Selling a home involves more than simply choosing a listing price.
Understanding the full financial picture—including commissions, closing costs, potential repairs, and loan payoff—helps homeowners make informed decisions and avoid surprises.
When sellers understand both the market value of their home and the true cost of selling, they are better positioned to move forward confidently.
Todd McClean
Realtor® | Real Estate Investment Strategist
Utah Property Playbook
Seller Strategy
→ How to Price Your Home Strategically in Utah
Market Insights
→ Utah County Housing Market Explained
Homeowner Decisions
→ Should You Sell or Rent Your Home?
Smart Home Buying
→ How First-Time Buyers Compete in Utah's Market
When Homes Don't Sell
→ Why Homes Fail to Sell
Investment Strategy
→ When Should You Sell a Rental Property?