When a home sells for $550,000, that number is what goes into the public record, shows up online, and gets referenced by neighbors. It's what real estate agents lead with when they pitch you on listing. But it's not the number that lands in your bank account.
The amount you actually walk away with is called your net proceeds — and the gap between the two figures is usually significant. On a $550,000 sale, that gap can easily run $45,000 to $80,000 once you account for everything a traditional sale actually costs.
This post breaks down exactly what gets subtracted between list price and net proceeds, runs the real numbers, and explains how a cash offer compares when you're doing an honest apples-to-apples calculation. Use our free Net Proceeds Calculator to run your own numbers alongside it.
What Gets Subtracted From a Traditional Home Sale
Real Estate Commissions: 2–5%
Historically, sellers paid around 5–6% in combined agent commissions. Following the 2024 NAR settlement, buyer agent compensation is more negotiable — but it hasn't gone away. In practice, most sellers still end up paying somewhere between 2% and 5% in combined fees. Offering no buyer's agent commission can meaningfully narrow your buyer pool. On a $550,000 sale at 5%: $27,500 out.
Seller's Closing Costs: 1–3%
Sellers pay a share of title insurance, escrow fees, and transfer taxes. Transfer taxes vary widely by state — in Texas, they're minimal, while in California, they can be more significant. Add another $5,500 to $16,500 on a $550,000 sale.
Buyer Concessions
In most markets, buyers ask sellers to cover some of their closing costs or buy down their mortgage rate. Budget $3,000 to $8,000 for concessions, especially in slower markets or when the buyer is financing.
Post-Inspection Repair Credits
After the inspection, buyers routinely request repairs or price reductions. On most homes, expect $2,000 to $8,000 in requests even on well-maintained properties. If the home has deferred maintenance, that number climbs.
Pre-Sale Preparation Costs
Paint, landscaping, staging, cleaning, and minor repairs before listing are common — and none of it shows up in your final sale price. Many sellers spend $3,000 to $15,000 getting a home market-ready before it even hits the MLS.
Carrying Costs During the Sale
From the day you list to the day you close, you're still paying the mortgage, utilities, insurance, and property taxes. In 2026's market, a 60–90 day timeline from list to close is common. At $2,000–$4,000 per month in carrying costs, that's another $4,000 to $12,000 that rarely gets factored into the comparison.
Running the Real Numbers on a $550,000 Sale
Here's what the math looks like:
| Item | Estimated Cost |
|---|---|
| Agent commissions (combined, ~5%) | $27,500 |
| Seller's closing costs (1–3%) | $5,500–$16,500 |
| Buyer concessions | $3,000–$8,000 |
| Post-inspection repairs/credits | $2,000–$8,000 |
| Pre-sale prep and staging | $3,000–$10,000 |
| Carrying costs (60–90 days) | $4,000–$10,000 |
| Total deductions | − $45,000 to − $80,000 |
| Estimated net proceeds on a $550,000 sale | $470,000 – $505,000 |
That $550,000 sale likely put between $470,000 and $505,000 in the seller's pocket — and that's before any mortgage payoff or capital gains considerations. The listing websites showed you the top of that range. You're making decisions based on the bottom of it.
Want to run your own numbers? Use Wedgewood Homes' free Net Proceeds Calculator to estimate what you'd actually walk away with in a traditional sale — then compare it to a cash offer.
How a Cash Offer Changes the Calculation
When Wedgewood Homes makes you a cash offer, the number we give you is your net proceeds — not a gross figure before deductions. Here's what that means in practice:
No commissions.
We cover closing costs. Many cash buyers advertise no agent fees but quietly pass closing costs back to the seller. We don't. What we offer is what you receive.
No service fee. Some iBuyers charge a 5–8% service fee on top of the transaction. We don't.
No repair requests. We buy homes as-is. There's no post-inspection negotiation.
No price reductions after signing. We walk the home before we make an offer and price it honestly upfront. Our contracts don't include contingencies designed to reduce the price later.
No carrying costs. We can close in as little as 3 days, or on whatever timeline works for you.
The Honest Comparison
The natural instinct when comparing a cash offer to a traditional listing is to compare the two headline numbers. If the listing price estimate is higher, the traditional sale looks better on its face.
But that's comparing a gross number to a net number. It's not a fair comparison.
The right comparison is: Wedgewood Homes offer (your net proceeds) vs. estimated net proceeds from a traditional sale — after commissions, closing costs, concessions, repair credits, prep costs, and carrying costs are all factored in.
When you do that math, the gap narrows considerably. In many cases — especially for homes that need work or sellers who need to move on a timeline — the cash offer net and the traditional sale net end up very close. Or the cash offer wins outright.
And that's before factoring in certainty. A Wedgewood Homes offer doesn't fall through because a buyer's financing fell apart. It doesn't get delayed by a low appraisal. It doesn't drag on for months while the market shifts.
Run the comparison yourself: use our Net Proceeds Calculator to estimate what a traditional sale would realistically net you, then request a cash offer and compare the two numbers side by side.
Common Questions About Home Sale Net Proceeds
What is a net sheet in real estate?
A net sheet (or seller's net sheet) is a document that estimates how much a seller will walk away with after all costs. Ask any agent you interview to produce one before you list. If they can't or won't, that's a red flag.
Does Zillow show the actual net proceeds from a home sale?
No. In disclosure states, Zillow and Redfin display the contract sale price only — the gross figure. They don't show commissions paid, closing costs, concessions, or any other deductions. The number you see is not what the seller received. In non-disclosure states like Texas, sale prices aren't reported to the public at all, so those figures won't appear on Zillow or Redfin regardless.
How much does it cost to sell a house?
In a traditional sale, sellers typically pay 8–10% of the home's sale price in combined agent commissions and closing fees alone — before repairs, concessions, or prep costs. On a $400,000 home, that's $32,000–$40,000 before the sale even closes.
Do cash buyers pay less than market value?
Cash buyers, including Wedgewood Homes, typically offer below the retail list price — but that offer is your take-home with zero deductions. When you calculate the net proceeds from a traditional sale on the same home, the difference is often much smaller than sellers expect. Our Net Proceeds Calculator is built to make that comparison easy.
What is a home sale proceeds calculator?
A home sale proceeds calculator estimates your net proceeds from a traditional sale by factoring in commissions, closing costs, repair credits, and other deductions. Wedgewood Homes offers a free one here.
See What You'd Actually Walk Away With
Use our free Net Proceeds Calculator to run your own numbers — then request a no-obligation cash offer from Wedgewood Homes and compare them side by side.