Seller Guides
What it actually costs to sell a home in San Francisco
The number that matters is not your sale price. It is what lands in your account after the costs come out. Here is an honest walk through every line on a San Francisco seller's net sheet, so there are no surprises at closing.
By Paulo Serna, San Francisco Real Estate Agent, Compass | Level Up Group · CA DRE# 02150409 · Living in San Francisco since 1995 · Updated June 2026
When sellers ask me what their home is worth, the real question underneath is usually different: how much do I actually walk away with? Sale price is the headline. Net proceeds are the story. Let's walk the net sheet line by line so you can plan with real numbers, not a guess.
This is general information, not tax or legal advice. The figures below move with the market and the rules change, so we build your specific net sheet together and your CPA or tax advisor confirms anything tax-related before you rely on it.
Brokerage commissions
Commissions are negotiable and always have been, and since the 2024 industry settlement the way buyer and seller agents are paid has changed and is negotiated more explicitly than before. There is no legally set rate. What you pay depends on what we agree to, the scope of service, and whether and how you choose to compensate the buyer's agent. We put this in writing up front so it is never a surprise, and I will explain exactly what your fee buys.
San Francisco transfer tax
The city charges a real property transfer tax, and in San Francisco the seller customarily pays it. It is tiered by sale price and rises steeply at the top of the market. As a rough guide, recent rates run around 0.68 percent for homes between $250,000 and $1,000,000, then step up into roughly the 1.1 to 1.5 percent range from $1,000,000 to $5,000,000, with much higher rates above $5,000,000. Because the schedule changes and the tiers matter, we confirm the exact current rate for your price on the city's official transfer tax page before we finalize your net sheet. On a typical San Francisco home this is one of your largest single closing costs, so it belongs in the plan early.
Pre-sale preparation
Paint, cleaning, light staging, and resolving obvious condition issues are usually the highest-return dollars you will spend, and they are a real line item. Major renovations rarely pay off right before a sale. Compass Concierge can front the cost of certain approved improvements, repaid at closing subject to eligibility and terms, which helps cash flow but is not free money. We scope prep to the work that actually moves your net result. More in what to fix before selling.
Standard closing costs
Expect title and escrow fees, a county recording fee, a natural hazard disclosure report, any city reports or compliance items for your property, and prorated property taxes and HOA dues through the close. Individually small, together meaningful, and all predictable once we have your details.
Your mortgage payoff
Whatever you still owe gets paid off from the proceeds, including any prepayment items and interest through the payoff date. We pull a current payoff figure so your net is based on the real number, not last year's statement.
Capital gains, and the exclusion that often protects you
If the home has been your primary residence, federal rules let many sellers exclude up to $250,000 of gain if you file single, or up to $500,000 if you are married filing jointly, provided you owned and lived in the home at least two of the last five years. Gain above the exclusion, or a property that does not qualify, can be taxable at both the federal and California level. The math depends on your cost basis, improvements, depreciation if you ever rented it, and your filing situation, so this is exactly where your CPA earns their fee. I will flag it early; they will run your numbers.
Putting it together: the net sheet
Your estimated net is your sale price minus commissions, transfer tax, prep, standard closing costs, and your mortgage payoff, with any capital gains handled separately by your tax advisor. I build this for your specific home before we list, and we update it as offers come in, so you are always deciding on the number that actually matters.
- Plan around net proceeds, not sale price.
- Commissions are negotiable and were restructured by the 2024 settlement; we put yours in writing up front.
- In San Francisco the seller customarily pays the transfer tax; it is tiered and rises steeply above $1M, so we confirm the exact current rate.
- Prep, title and escrow, reports, and your mortgage payoff all come out of proceeds.
- Many primary-residence sellers exclude up to $250k of gain ($500k married); your CPA confirms your situation.
- I build your specific net sheet before listing and update it as offers arrive.
Related reading
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