Seller Education · September 11, 2026 · 11 min read
Last Thursday I sat at a kitchen table in Bel Air with a couple who wanted to sell and move closer to their daughter in Delaware. Nice folks. They'd owned the house eighteen years, bought it for $285K, figured it was worth about $525K now.
"So we'll clear around $240,000, right?"
I pulled out my calculator and a blank sheet of paper.
By the time we worked through the real numbers—commission, transfer taxes, payoffs, prorations, repairs we'd agreed were non-negotiable after I walked the house—they were looking at about $191,000 net.
That's a $49,000 gap between what they expected and what they'd actually take to settlement.
They weren't angry. Just surprised. And a little embarrassed that they hadn't asked sooner.
You'd be shocked how many sellers do cocktail-napkin math, then three days before closing get the settlement statement and panic because the number is fifty grand lighter than they'd planned their whole next move around.
So let's fix that. Here's what actually comes out of your sale price when you sell a house in Maryland, Pennsylvania, Delaware, or D.C.—and how to estimate it before you ever put the sign in the yard.
Your list price is not your net proceeds. It's not even your sale price.
If you list at $525,000 and sell at $510,000 after negotiation, that $510K is your gross. Everything I'm about to walk through gets subtracted from that number.
The couple in Bel Air had done the even more common thing: they'd subtracted their mortgage payoff from the list price and called it a day. But between sale price, payoffs, and fees, you've got six or seven line items that chip away at that number before you see a dime.
Here's the anatomy.
In Maryland and across my license footprint, commission is negotiable. Always has been. But the typical total commission for a residential sale in our region still tends to land between 5% and 6% of the sale price, split between the listing broker and the buyer's broker.
On a $510,000 sale at 5.5%, that's $28,050.
Yes, it's a big number. It covers marketing, professional photography, staging consultation, MLS exposure, cooperation with buyer agents, contract negotiation, settlement coordination, and the fact that I'm going to answer your texts at 9 p.m. when the buyer's lender asks for another bank statement.
I've been a Maryland realtor for years now, and I promise you this: the commission conversation is easier when we have it up front, in writing, before we talk about list price. If you want to discuss a different structure—flat fee, tiered, performance-based—I'm open to it. But don't back-solve your net proceeds by pretending commission doesn't exist.
Maryland charges both a state transfer tax and a county recordation tax. These vary by jurisdiction, and if you're selling in another state I cover, the rules are different again.
The state transfer tax is 0.5% of the sale price. On that $510K sale, that's $2,550.
Recordation tax varies by county. In Harford County, it's about 0.115% county plus the state piece. In Baltimore County, add a bit more. In Montgomery County, you're paying a local supplement that can push the combined rate higher. The total often runs close to 1.0% to 1.5% depending on where you are.
Let's call it $6,000 to $7,500 for our example.
By custom in Maryland, the seller typically pays the state transfer tax and the buyer pays recordation—but it's negotiable, and in some markets right now (especially with inventory at a six-year high), buyers are asking sellers to cover more. I've seen it.
In Pennsylvania (York and Lancaster Counties), you'll pay a combined state and local transfer tax that can run 2% to 3% depending on the municipality. Pennsylvania is not shy about this.
In Delaware (New Castle County), the combined transfer tax is lower—around 3% total, but it's often split between buyer and seller.
In Washington, D.C., the transfer tax is tiered and can hit 2.2% to 2.9% depending on sale price. D.C. real estate has its own peculiarities; if you're selling there, we need to talk early about who's covering what.
Check your local jurisdiction's official site before you guess. Here's Maryland's recordation and transfer tax overview if you want to nerd out on the details.
If you owe $280,000 on your mortgage, you'll pay that off at closing. Straightforward.
But here's what catches people: your payoff includes accrued interest through the day you close. If your monthly payment covers interest through the first of the month and you close on the 18th, you owe another 17 days of per-diem interest.
On a $280K loan at 4.5%, that's about $55 a day. Over two weeks, call it $850.
Also, some lenders charge a small payoff processing fee—$50 to $150. It's annoying but legal.
And if you have a second mortgage, HELOC, or solar lien, those get paid too. I've had sellers forget to mention a $30K HELOC until a week before closing. It's always better to get your payoff statements 30 days out so there are no surprises.
Maryland property taxes are paid in arrears. If you close in September but you've only paid through June, the title company will prorate what you owe for July, August, and September and deduct it from your proceeds. The buyer gets a credit; you get a debit.
On a $5,000 annual tax bill, three months is $1,250.
If you're in a community with an HOA, same deal. If your quarterly dues are paid through October but you close in September, you'll get a small credit back. But if you're behind, you'll owe it at closing—plus any late fees or special assessments the HOA has levied.
Water and sewer bills in some Maryland counties (looking at you, Harford and Baltimore County) are also prorated and sometimes held in escrow until the final meter read comes in. Budget another $100 to $300 depending on timing.
Let's say the home inspection comes back and the buyer asks for $4,500 in repairs or a credit. You negotiate down to $3,000. That $3,000 comes off your net.
Or the buyer asks you to cover part of their closing costs so they can buy down their rate a bit in this 7%+ mortgage environment. You agree to $2,500 in seller concessions. Again, that's deducted at settlement.
I always build a $2,000 to $5,000 repair/credit cushion into my seller net sheets. Sometimes we don't need it. But when the septic inspection in Cecil County reveals a baffle issue or the roof in Anne Arundel needs three shingles replaced and some flashing, you'll be glad we planned for it.
In Maryland, the buyer typically pays for the lender's title insurance policy, but the seller often pays for the owner's title policy—though again, this is negotiable.
Budget around $1,000 to $1,500 for your share of title work.
Settlement company fees (the folks who run the closing) are usually split or assigned by custom in your county. In some places, the seller pays; in others, it's 50/50. Call it $400 to $800.
If you're using a real estate attorney (common in some parts of Pennsylvania and Delaware, less so in Maryland unless it's a complex estate or trust situation), add another $500 to $1,500 depending on scope.
None of these alone will break you. Together, they're another $1,000 to $2,000.
Let's put it all together with that couple from Bel Air.
Total deductions: $321,300
Net proceeds: $188,700
That's about $191K once you round and adjust for a few minor items I didn't list. And that's after they'd paid off a small credit card balance that had shown up as a lien during title search. (Always clear those before you list.)
They walked away with enough to put 20% down on a smaller place in New Castle County, Delaware, and still have a cushion. But only because we'd planned for it in advance.
I build a net sheet for every seller before we talk about list price. It takes ten minutes and it saves everyone a minor coronary at closing.
You can ask any competent Harford County realtor or Baltimore County realtor to do this for you before you sign a listing agreement. If they won't, find someone else.
You'll need:
Plug it all into a spreadsheet or let me do it. Then we'll know if your plans are realistic.
If you're thinking about selling and want to see what you'd actually walk away with, reach out here and I'll run the numbers with you. No obligation, no pressure, just math.
Right now, with rates above 7% and buyers stretching to qualify, a lot of sellers are being asked to chip in on closing costs or offer credits to make deals work. I'm seeing it across Cecil County, Baltimore City, and even in stronger seller markets like parts of Howard County.
If you've planned your net proceeds down to the dollar because you need exactly $200K to close on your next place, and then you agree to $5K in concessions you hadn't budgeted, you're short. And nobody wants to bring money to closing or scramble for a bridge loan in the eleventh hour.
The other thing: if you're selling and buying simultaneously, your down payment on the next house depends on your net from this one. If you're off by $30K, your financing on the next house might fall apart or you'll end up paying PMI when you thought you'd avoid it.
Do the math early. Ask your Maryland realtor to walk through every line item. Get your payoff statements. Check your local transfer tax rates at the Maryland Department of Assessments and Taxation.
And if you're selling in another state I cover—Pennsylvania, Delaware, or D.C.—ask me to adjust for those rules, because they're different and sometimes more expensive.
Your sale price is not your net proceeds.
Your list price minus your mortgage is not your net proceeds.
Your net proceeds are what's left after commission, taxes, payoffs, prorations, repairs, title fees, and all the little stuff that sneaks in at closing.
Most of the time, it's 10% to 15% less than sellers expect when they first start Googling "homes for sale in Harford County" or daydreaming about their next move.
But if you know the number going in, you can plan around it. You can price the house right, negotiate smartly, and walk into closing confident that the check you're getting matches the check you need.
That's the whole point of working with someone who'll do the math with you instead of just smiling and telling you what your house is worth.
If you're thinking about selling anywhere in my footprint—Maryland (Cecil, Harford, Baltimore, Howard, Anne Arundel, Montgomery, Charles, or Baltimore City), Pennsylvania (York or Lancaster), Delaware (New Castle County), or Washington, D.C.—let's sit down and run your numbers before you make any decisions.
I've got the calculator, the blank sheet of paper, and twenty years of teaching experience that makes me pretty good at explaining this stuff without the jargon.
Check out my current listings here to see how I'm pricing and marketing homes right now, or get in touch and we'll start with your net sheet.
No surprises. Just the real numbers.
Katrina Kirton Sherrod, REALTOR® · Samson Properties · Licensed in MD, DC, PA & DE · 443-616-9770 · Katrina@kkstherealtor.com
“Don’t wait to buy real estate. Buy real estate and wait.” — Will Rogers (attributed)