Understanding Net Proceeds: What Solon Sellers Actually Walk Away With

Many Solon sellers are surprised when they see their closing statement. The sale price looks great, but the net check is smaller than expected. Understanding what comes out of your proceeds before you list gives you a realistic picture of what you'll actually walk away with.

The biggest closing cost for most sellers is the real estate commission. In Ohio, total commission is typically negotiated between seller and their agent, with the seller's offer of compensation to a buyer's agent being a separate consideration since the August 2024 NAR settlement changes. Understanding how compensation works at your specific brokerage is important before you sign a listing agreement.

Beyond commission, sellers typically pay for the deed preparation, pro-rated property taxes, title transfer fees, and any agreed-upon closing cost credits to the buyer. In Solon, where property tax rates can be meaningful, sellers sometimes underestimate how much of their annual tax bill gets pro-rated at the closing table.

If you have a mortgage, your payoff balance (including any prepayment considerations) will come out of proceeds as well. For sellers who purchased in 2020–2022 with significant equity built up, this may still leave a strong net. For those who refinanced and pulled equity, the calculation looks different.

Your agent should provide you with a seller's estimated net proceeds sheet before you decide on a list price. This document projects your expected bottom line based on sale price, commission, taxes, and typical closing costs. Having this transparency upfront prevents surprises at closing.

Key Takeaways:

• Commission, taxes, and title fees reduce your gross proceeds
• Ask for a seller net sheet before committing to a list price
• Property tax pro-ration can be a significant deduction in Solon
• Mortgage payoff balance reduces net to seller
• NAR settlement changes affect how buyer agent compensation works