How Much Money Do You Actually Keep When You Sell Your Home?

By Katia Bidaurreta | Realtor® – Compass

November 6, 2026

Imagine selling your home for $1 million.

It's an exciting milestone, especially if you've spent years building equity and are now thinking about what comes next.

Maybe you're ready to downsize, relocate closer to family, or purchase another home. Perhaps you've been watching property values in your neighborhood and wondering whether now is the right time to sell.

But before you start planning around that $1 million figure, there's something important to understand.

The price your home sells for isn't necessarily the amount you'll receive at closing.

After paying off your existing mortgage, covering negotiated selling expenses, and accounting for closing adjustments, your actual proceeds could be substantially different.

And that brings us to a question I believe every homeowner should consider before listing:

How much money will I actually walk away with?

What Are Seller Net Proceeds?

Seller net proceeds are the amount of money a homeowner receives from a property sale after mortgage payoffs, selling expenses, and applicable closing adjustments are deducted.

The basic calculation looks like this:

Final Sale Price − Mortgage Payoff − Selling Expenses − Closing Adjustments = Estimated Seller Net Proceeds

For example, a homeowner who sells a property for $1 million but still owes $400,000 on the mortgage starts with approximately $600,000 before selling expenses.

From there, the final amount depends on the property's location, negotiated transaction terms, and other costs.

This is why knowing your home's estimated market value is only the beginning.

If you're considering selling a property in Petaluma, Novato, or elsewhere in Sonoma or Marin County, understanding your estimated net proceeds can help you make a more informed decision about your next move.

Your Home's Value, Your Equity, and Your Net Proceeds Aren't the Same Thing

These three terms are often used interchangeably, but they mean different things.

Market value is an estimate of what your property could reasonably sell for under current market conditions.

Home equity is the difference between your property's value and the outstanding debt secured by the home.

Seller net proceeds are what you actually receive after closing-related deductions.

Here's why those distinctions matter.

Suppose you've owned your Petaluma home for twenty years. Your property may have appreciated significantly since you purchased it, and you may have paid down much of your original mortgage.

That's encouraging.

But if you're planning to use the proceeds to purchase a smaller home, fund retirement plans, or relocate, knowing your equity alone may not give you the full picture.

You need to understand what remains after the sale is completed.

A preliminary seller net sheet helps connect those numbers to your actual plans.

What Expenses Reduce Your Proceeds When Selling a Home in California?

Selling expenses vary from one transaction to another. There is no universal percentage that every California seller pays.

However, several common items can affect the amount you receive.

Your Mortgage Payoff

If you have an outstanding mortgage or other loans secured by the property, those balances generally must be satisfied as part of the sale unless an alternative arrangement is made.

Your payoff amount may differ from the balance on your latest mortgage statement because it can include accrued interest and applicable charges through the payoff date.

Although this isn't a fee for selling your home, it is often the largest amount deducted from the proceeds.

Real Estate Brokerage Compensation

Brokerage compensation is negotiable.

There is no legally established commission percentage that every California homeowner must pay.

The compensation you agree to with your listing brokerage should be explained in your written agreement.

Buyers also negotiate compensation with their own real estate representatives. Depending on the purchase agreement, a seller may agree to contribute toward buyer-broker compensation.

Those arrangements can affect the seller's financial picture, so they should be clearly documented and reflected in the estimated net proceeds.

You can learn more through the California Department of Real Estate's guidance on real estate representation and compensation.

Escrow, Title, and Transaction Expenses

The closing process involves services that help complete the transfer of ownership.

Depending on the transaction, these expenses may include escrow fees, title-related charges, recording fees, and other settlement costs.

Which party pays a particular expense depends on the agreement, applicable law, and transaction arrangements.

Seller Credits and Negotiated Concessions

Sometimes buyers request financial concessions as part of their offer or after reviewing inspection findings.

For example, a seller might agree to provide an allowable closing-cost credit or negotiate a credit related to an identified property condition.

These agreements can affect your final proceeds even if the purchase price stays the same.

That's why I encourage sellers to evaluate the complete offer rather than focusing only on the price.

A strong offer is about more than the number at the top of the contract.

Property Taxes and Other Closing Adjustments

Depending on the property and closing date, your settlement statement may also reflect property tax prorations, homeowners association dues, outstanding assessments, or other amounts.

These details aren't identical for every home.

A property-specific estimate helps identify which expenses are likely to apply.

Selling in Petaluma vs. Novato: Why Local Costs Matter

Here's something that makes our local real estate market especially interesting.

You could sell a home in Petaluma and another in Novato for the exact same price, yet certain transaction expenses could be different.

One example is the real property transfer tax.

In Petaluma, Sonoma County generally imposes a documentary transfer tax of $1.10 per $1,000 of taxable value. The City of Petaluma also imposes its own real property transfer tax of $2 per $1,000.

For a straightforward taxable $1 million sale, that produces an illustrative combined amount of approximately $3,100.

In Novato, Marin County generally imposes a documentary transfer tax of $1.10 per $1,000 of taxable value, without the additional city transfer tax that applies in San Rafael.

For a comparable taxable $1 million sale, the illustrative amount would be approximately $1,100.

These examples assume a fully taxable transfer, no applicable exemptions or adjustments, and calculation on the full $1 million value. The parties' agreement and applicable law determine responsibility for payment.

That $2,000 difference is only one example of why local transaction knowledge matters.

It's also why an online selling-cost estimate may not provide a complete picture of what an individual homeowner can expect.

The details should be reviewed with the appropriate real estate and escrow professionals.

What Would You Actually Keep From a $1 Million Home Sale?

Let's make this more concrete.

Imagine two homeowners, one selling a property in Petaluma and the other selling in Novato.

Both properties sell for $1 million.

Both homeowners have the same mortgage payoff and, for this illustration, agree to the same transaction expenses.

The figures below are entirely hypothetical. They are not quotes for Katia's services or predictions of what any particular property will cost to sell.

Example Seller Net-Proceeds Comparison

The hypothetical brokerage amount includes all seller-agreed brokerage compensation, if any. The separate concessions line represents other negotiated buyer credits, not additional brokerage compensation. Actual fees, allocation of transfer taxes, prorations, loan payoffs, and contractual terms vary. Figures exclude capital gains taxes, other liens, HOA charges, and costs incurred outside closing.

The important takeaway: Two homes with the same sale price don't necessarily produce the same cash proceeds.

And even within Petaluma or Novato, two sellers with otherwise similar properties may walk away with very different amounts because their mortgage balances and negotiated terms aren't the same.

What About Taxes on the Profit From Your Home Sale?

This is another area where sellers sometimes confuse two separate financial concepts.

The amount of cash you receive after closing is not necessarily the same as the taxable gain from selling your property.

For qualifying primary-residence sales, federal tax law may allow homeowners to exclude up to $250,000 of gain, or up to $500,000 for certain married couples filing jointly.

Eligibility depends on factors such as ownership, residency, previous use of the exclusion, and the property's history.

The calculation of gain can also involve your adjusted cost basis, qualifying improvements, and applicable selling costs.

Your remaining mortgage balance generally does not determine your taxable gain.

Because tax consequences are specific to each homeowner, I recommend reviewing them with a qualified tax professional.

The IRS Selling Your Home guide provides additional information about federal requirements.

Why Knowing Your Net Proceeds Can Change Your Selling Decision

For many homeowners, selling isn't an isolated transaction.

It's connected to something bigger.

Maybe you've lived in your Novato home for decades and are ready for a property with less maintenance.

Maybe you're planning to sell in Petaluma and purchase another home somewhere in Sonoma or Marin County.

Or perhaps you're considering relocating and want to understand how much money you could have available afterward.

In each situation, knowing your estimated proceeds can help answer questions that a simple home-value estimate cannot.

For example, would the sale leave enough money for your next purchase? Would negotiated repairs or credits substantially change your plans? Does your expected sale price support your timeline?

The answers start with understanding your property's likely market value and the expenses associated with selling it.

That's why accurate pricing and a realistic seller net sheet belong in the same conversation.

You may find my earlier article, Why Pricing Your Home Right Matters More Than Ever, helpful for understanding how comparable sales and current competition influence pricing decisions.

For Novato homeowners beginning their preparations, I've also written about how to plan a home sale before listing.

How Can a Local Real Estate Agent Help You Estimate Your Net Proceeds?

A meaningful seller net sheet begins with a realistic estimate of what the property may sell for.

That requires more than looking at a property's online estimated value.

A real estate agent can evaluate recent comparable sales, competing homes, property condition, location, and other relevant market information.

The estimate can then be combined with your outstanding loan information and anticipated transaction expenses to help create a preliminary picture of your proceeds.

As a Compass real estate agent serving Petaluma, Novato, and surrounding Sonoma and Marin County communities, I help homeowners evaluate these decisions as part of the selling process.

My background includes a B.S. in Finance from Sonoma State University and professional experience in mortgage loan processing. That financial foundation influences how I approach conversations about the numbers behind real estate decisions, not just a property's asking price.

Of course, an initial net sheet is an estimate. Escrow professionals, lenders, and other qualified advisers will need to confirm relevant charges and final amounts.

But having a preliminary estimate before listing can make the planning process far more useful.

For additional information about preparing and marketing a home, visit my Home Seller's Guide.

Frequently Asked Questions About Selling a Home

How much does it cost to sell a house in Petaluma?

There is no fixed cost for every property. The total depends on negotiated brokerage compensation, escrow and title expenses, transfer taxes, seller concessions, and other transaction details. Petaluma also imposes a city real property transfer tax in addition to Sonoma County's generally applicable tax.

What closing costs should I expect when selling a home in Novato?

Potential costs include negotiated brokerage compensation, escrow and title charges, Marin County documentary transfer tax, property tax adjustments, and any seller-agreed concessions. Actual responsibility and amounts depend on the transaction.

Is a home-value estimate the same as a seller net sheet?

No. A home-value estimate focuses on what a property might sell for. A seller net sheet goes further by estimating the amount remaining after mortgage payoffs and other anticipated deductions.

Can I request a seller net-proceeds estimate before listing my home?

Yes. You can discuss a preliminary estimate with a real estate agent before deciding whether to list. The estimate should be updated as more accurate pricing, loan payoff, and settlement information becomes available.

Find Out What Your Home Sale Could Mean for Your Next Move

Selling a home is about more than putting a price on a property.

It's about understanding how the sale could support your plans, whether that means buying another home, downsizing, relocating, or simply exploring your options.

Before you make a decision based on an estimated property value, let's look at the numbers behind the transaction.

Wondering how much you could actually walk away with if you sold your home?

I can help you explore your home's potential market value and discuss a preliminary seller net-proceeds estimate based on your property and goals.

Whether you own a home in Petaluma, Novato, or elsewhere in Sonoma or Marin County, I'd welcome the opportunity to help you understand your next move.

Request a Seller Net-Proceeds Estimate

When contacting me, mention that you're interested in a seller net sheet.



Katia Bidaurreta | Realtor® – Compass
CA DRE #02152439
Phone: (415) 717-7243
Email: katia.bidaurreta@compass.com
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