Seller Education · August 14, 2026 · 8 min read
I had a seller in Anne Arundel County call me last month, voice tight with panic. She'd listed with another agent six weeks earlier, accepted an offer at full price, and was thrilled. Then she got to settlement and walked out with $42,000 less than she'd budgeted for her next down payment.
Nobody had shown her the math.
She wasn't calling to list with me. She was calling because her sister is my client, and she just needed to vent to someone who'd understand. I let her. Then I explained, line by line, where that money went. It wasn't fraud. It wasn't hidden fees. It was just... the cost of selling a house that no one had bothered to prepare her for.
That conversation is why I'm writing this today.
When you see homes for sale in Harford County listed at $425,000, that number lives in your head as your number. But it's not. It's the gross. What you actually take home—your net proceeds—can be anywhere from 88% to 94% of that sale price, depending on your situation.
Let's do the math on a typical Maryland home sale so you can plan, budget, and avoid that gut-punch at settlement.
Here's the standard lineup of costs that come out of your proceeds. I'm using a $400,000 sale price in Baltimore County as the example, because it's close to the current median and makes the math easy to follow.
First thing that happens: your lender gets paid in full. If you owe $280,000, that's $280,000 off the top. Any second mortgages, HELOCs, or liens (tax, mechanic's, HOA) get paid next. Your title company will order a lien search weeks before closing to catch these.
Example deduction: $280,000
In Maryland, typical total commission runs 5–6% of the sale price, split between the listing agent's brokerage and the buyer's agent's brokerage. On a $400,000 sale at 5.5%, that's $22,000. Yes, commissions are negotiable—always have been, even before the 2026 NAR settlement changes—but this is the range I see most often in the Baltimore-Washington corridor.
Example deduction: $22,000
This is where Maryland gets expensive compared to some states, and it varies by county.
The state charges 0.5% of the sale price. Then each county and municipality adds its own layer. In Baltimore County, you're looking at another 1.5% county transfer tax. Baltimore City? Add another 1.5%. Harford County is a bit gentler at 1%. Howard County sits at 1.25%. Prince George's County charges 1.4%.
On our $400,000 Baltimore County example:
You can look up your specific county rate on the Maryland Department of Assessments and Taxation site, but budget at least 1.5–2% total.
In D.C., the seller pays both transfer and recordation taxes—budget around 2.2–2.9% depending on price tier. Pennsylvania is cheaper: York and Lancaster Counties run around 2% total. Delaware's transfer tax is a flat 4%, but it's customarily split 50/50 between buyer and seller in New Castle County, so you'd pay about 2%.
Example deduction: $8,000
In Maryland, the seller typically pays for the owner's title insurance policy for the buyer. That runs about $1,000–$2,500 depending on sale price. You'll also pay your portion of the settlement company or attorney fees—another $500–$1,200. If you hired a real estate attorney to review your contract or handle negotiations, add another $500–$1,500.
Example deduction: $2,200
If you agreed to pay some of the buyer's closing costs to sweeten the deal—pretty common right now with buyers still hesitant even as rates drop—that comes out of your net. Let's say you agreed to 2% ($8,000) in concessions.
Example deduction: $8,000
You'll owe property taxes up through your settlement date. If you've prepaid the year and close in August, you'll get a credit back. If you haven't paid yet, you'll owe a debit. Same with HOA dues, water/sewer bills, and any other prorated costs. This usually nets close to zero but can swing $1,000–$3,000 either way.
Example deduction/credit: $500
If the buyer's inspection turned up a failing HVAC and you credited them $4,000 at closing instead of replacing it, that's another deduction. If you spent $1,200 on a pre-listing home inspection (smart move, by the way), $800 staging your living room, and $600 on a final cleaning and minor paint touch-ups, those don't appear on the settlement statement but they're real costs.
Example out-of-pocket before closing: $2,500
Let's tally our $400,000 Baltimore County sale:
Net proceeds: $76,800
That's 19.2% of your sale price. If you bought the home years ago and have significant equity, that's still a healthy number. But if you bought recently, owe more, or were counting on a bigger check, you can see how the math gets uncomfortable fast.
Grab a calculator. Seriously, do this before you even call a Maryland realtor to list.
If the number doesn't work for your plans, you have options: price higher (if the market supports it), wait and pay down your mortgage, or negotiate a lower commission. Just don't wait until a week before closing to run this math.
Time your sale carefully. If you're a few months away from paying off a big chunk of principal or refinancing into a lower rate, that might affect your payoff and your net.
Ask about seller assist limits. If a buyer asks you to cover 4% of their closing costs but their loan type only allows 3%, you just saved yourself 1%. Know the rules. FHA allows up to 6%, conventional usually caps at 3–6% depending on down payment, VA allows 4%.
Negotiate commission. I'm not going to lie and say I work for 1%. I don't. But I will have an honest conversation about what services you need, what you're comfortable offering to a buyer's agent, and where we can build a package that makes sense. Transparency beats surprises.
Sell when inventory is tight. Right now, with buyers outnumbering sellers by a record margin, you're in a stronger position to resist repair requests, avoid price cuts, and skip concessions. That directly protects your net.
Get a pre-listing inspection. Costs you $400–$600 upfront, but it lets you fix deal-killers on your timeline and your budget instead of scrambling during the buyer's inspection period or watching them walk. I've seen this save sellers thousands.
If you've lived in the home as your primary residence for at least two of the last five years, you can exclude up to $250,000 in gain if you're single, $500,000 if you're married filing jointly, under current IRS rules. Most Maryland sellers don't owe federal capital gains. But if you're selling a rental, a second home, or you've owned the place for decades and have massive appreciation, talk to a CPA before closing. The tax bill can be substantial, and it's not deducted at settlement—it comes due the following April.
The IRS has details here, but don't rely on a blog post (even mine) for tax advice. Pay a professional.
I spent two decades as an educator. I taught high school students how to read a pay stub, balance a budget, and understand compounding interest. When I moved into real estate, I didn't stop teaching—I just changed the subject matter.
When you reach out to list your home with me, one of the first things I'll do is build you a net sheet. It's a one-page estimate of every cost, every deduction, and your anticipated proceeds. We'll go over it together. I'll explain the county transfer tax rate, show you how different sale prices change your bottom line, and talk through what happens if the appraisal comes in low or a buyer asks for credits.
No surprises. No panic calls after settlement.
You'll know your number before the sign goes in the yard. And if that number doesn't work, we'll talk about your options before we waste your time and money on photos and open houses.
That's the difference between teaching and selling. I'd rather have you walk away informed—even if you decide to wait another year—than have you sign something you don't fully understand.
If you're thinking about selling in Harford, Cecil, Baltimore County, Baltimore City, Anne Arundel, Howard, Montgomery, Charles, Prince George's, Washington D.C., York, Lancaster, or New Castle County and you want to know what you'll actually walk away with, let's talk. I'll run the numbers with you. No pressure. Just math, a little bit of strategy, and a realistic picture of where you stand.
You can browse current market inventory here to get a feel for pricing, or just email me and we'll set up a time to walk through your situation.
Katrina Kirton Sherrod, REALTOR® · Samson Properties · Licensed in MD, DC, PA & DE · 443-616-9770 · Katrina@kkstherealtor.com
“A house is made of walls and beams; a home is built with love and dreams.” — Ralph Waldo Emerson (attributed)