Selling your home isn’t just about accepting an offer; it’s about understanding what you’ll walk away with, how taxes may affect you, and what to expect after the sale closes. Yet most sellers only discover the importance of these aspects of the sale after they’ve already made major decisions. This guide breaks everything down simply, so you feel confident, prepared, and in control from the very start.
Understanding Your Net Proceeds (What You Actually Keep)
Your “sale price” isn’t your take-home amount. Net proceeds are what’s left after subtracting the costs associated with selling your home:
Typical Deductions Include:
- Real estate commission
- Transfer taxes
- Title fees
- Repairs negotiated with buyers
- Seller credits
- Mortgage payoff (including any second loans or liens)
Why this matters:
The clearer your understanding of these numbers, the stronger your pricing and negotiation strategy becomes.
Local expert Meredith Fogle of The List Realty explains it perfectly:
“We never want our sellers to be surprised by finding out how much they actually walk away with. We help our clients calculate estimated proceeds early so they have a clear understanding of what their actual proceeds will be.”
Having these numbers upfront helps you plan your next move - whether that means buying, renting, investing, or relocating.
Will You Owe Taxes on Your Home Sale?
Not every seller will face capital gains tax; in fact, many won’t. But it’s crucial to know where you stand.
The IRS Exclusion Rule
You may be exempt from paying taxes on gains up to:
- $250,000 if you’re single
- $500,000 if you’re married filing jointly
To qualify, you must have:
- Owned the home for at least two of the last five years
- Lived in it as your primary residence for two of the last five years
- Not used this exclusion on another home sale in the last two years
If your profit exceeds the exclusion, or if this wasn’t your primary residence, you could owe taxes - but only on the profit, not the whole sales price.
Other Tax Situations Worth Knowing
- Selling a rental or investment property
- Divorce-related sales
- Inherited properties
- “Accidental landlords” who moved out before selling
If any of these apply, let a professional help guide your strategy long before you sign a listing agreement.
Planning Your Next Steps (Before You Even List)
Once you understand your financial picture, planning becomes much easier. Smart sellers think through the next stage now, not when they’re already packing.
If You’re Buying Again:
- Get pre-approved early
- Understand how your proceeds affect your buying power
- Explore bridge loans or other "temporary financing" options if you need extra time
If You’re Moving Out of State:
- Research cost-of-living differences
- Understand tax implications for your new location
- Coordinate timelines to avoid temporary housing unless necessary
If You’re Downsizing:
- Create a list of “must-haves” for your next home
- Plan for storage, decluttering, and donated items
- Think through lifestyle changes (proximity to services, maintenance, amenities)
If You're Renting After Selling:
- Review lease terms that align with your home sale timeline
- Evaluate short-term vs. long-term options
- Consider storing sale proceeds in high-yield savings while you plan your next big move
Why Smart Sellers Prep Early
Sellers who understand taxes, proceeds, and next steps from the beginning are the sellers who:
- Price their home with clarity
- Negotiate from a position of strength
- Avoid panic decisions
- Move smoothly into their next chapter
Meredith puts it this way:
“A smart seller doesn’t wait until closing to find out what comes next. The best outcomes happen when you plan, prepare, and partner with professionals early in the process.”
