If you're thinking about selling in San Francisco, the first question is usually the most practical one: after everything is paid, how much do I actually walk away with? It's a fair question — and the honest answer is that selling here costs more than in most of the country, largely because of one line item unique to our city. Here's exactly where the money goes.
Agent commission
Commission is the largest cost for most sellers, and since the 2024 industry changes it's more negotiable and transparent than ever. There's no fixed rate. In California, total commissions have historically run between 4% and 6%, with the listing side commonly around 2.5%. Sellers now decide separately whether to offer compensation to the buyer's agent — and in a competitive market like ours, most still do, because it widens your buyer pool and protects your final price. I'll always walk you through those trade-offs before you commit to a number.
San Francisco's transfer tax — the big one
This is the cost that surprises most sellers, and it's where San Francisco stands apart. The city charges a graduated transfer tax, paid by the seller, that climbs sharply with price:
- $1M–$5M: 0.75%
- $5M–$10M: 2.25%
- $10M–$25M: 5.5%
- $25M and above: 6%
On a typical $1.5M sale, that's about $11,250. But notice how steeply it jumps: the moment a sale crosses $5 million, the rate triples. That's exactly why pricing strategy near these thresholds matters so much — for a home that could sell right around $5M, a few thousand dollars in list price can swing your tax bill by tens of thousands. This is the kind of thing worth planning long before we list.
Preparing the home to sell
San Francisco buyers expect a home that shows beautifully, and presentation has a direct effect on your final price. Plan for some combination of staging, fresh paint, minor repairs, deep cleaning, and professional photography. Many sellers also complete pre-sale inspections and a disclosure package up front, which builds buyer confidence and heads off renegotiation later. These costs vary widely by property, but done well, they tend to pay for themselves in a stronger sale.
Escrow, title, and closing fees
These are the smaller, unavoidable administrative costs — escrow services, title insurance, recording fees, and a modest state documentary tax. Minor on their own, but worth accounting for together.
Capital gains tax
If your home has appreciated significantly, you may owe tax on the profit above the IRS exclusion — $250,000 if you're single, $500,000 if married filing jointly — and California taxes that gain as ordinary income. This one is very situation-specific, so I always recommend confirming the details with your CPA before you sell.
So what's left?
After commission, transfer tax, and preparation, most San Francisco sellers should plan to net somewhere in the range of 88–93% of their sale price, before any capital gains. The exact figure depends entirely on your home, your price point, and the choices we make together.
That's why I prepare a personalized seller's net sheet for every client — a clear, line-by-line estimate of your costs and your expected proceeds, before we ever list. No surprises. Just a real number you can plan around.
Thinking about selling this year? I'd be glad to put together your net sheet and walk you through it. Reach out anytime.
