The Money: Costs, Commissions & Net Proceeds

The most important number isn't the "List Price"—it is the number on the check you receive at closing. Below, we break down the math of selling your home, including our unique strategy for handling Buyer Agent Commissions.

Do I have to pay the Buyer's Agent Commission?

No. Following the 2024 real estate law changes, sellers are no longer obligated to set aside a commission for the buyer's realtor. At Oliver Realty, we believe this is the correct path.

Our Philosophy: Why should you automatically pay someone to negotiate against you? Automatically offering a blanket 2.5%–3% co-op fee is an outdated practice that costs sellers money.

Our Strategy: We do not offer a pre-set co-op fee in our listings. Instead, we let the buyer ask for it. When a buyer's agent brings an offer, they will attach a "Seller's Compensation Addendum" requesting their fee. We treat this request exactly like any other concession (like repairs or closing costs).

We then break this fee down and use it as a powerful lever in our negotiation strategy. By treating this cost as a variable rather than a fixed expense, we have found we can consistently get our sellers more money.

(Note: Many "Big Box" brokerages still automatically bake a 2.5%–3.5% fee into their listing contracts because it is "safer" and easier for their agents to manage. We prefer to do the hard work of negotiating it to maximize your profit.)

What other closing costs will I pay?

In Tucson and Oro Valley, sellers typically pay specific closing costs separate from commissions. These usually total roughly 1% of the sales price. They include:

• Owner’s Title Insurance Policy: Protects the buyer from past title defects.
• Escrow & Recording Fees: Standard administrative costs.
• Prorated Property Taxes: You pay the taxes for the days you owned the home this year.

Will I get a net proceeds estimate?

Yes. We do not believe in mental math. We provide a detailed "Net Sheet" that calculates your estimated walk-away money based on different sale price scenarios. We update this sheet every time we receive an offer (factoring in the requested buyer's agent fee) so you can make decisions based on real data.

Can I sell if I still owe on my mortgage?

Absolutely. You do not need to pay off your mortgage before you sell. The Title Company handles this for you. At closing, they use the buyer's funds to pay off your existing loan balance directly to your bank. The remaining profit (your equity) is then wired to you.

How does selling affect my taxes?

The "Capital Gains Exclusion" is one of the best tax benefits in real estate. Generally, if you have lived in the home as your primary residence for 2 of the last 5 years, you can exclude up to $250,000 of profit (if single) or $500,000 (if married) from federal capital gains taxes. (Note: Always verify this with your tax professional.)

What if the appraisal comes in low?

If the bank's appraiser values your home lower than the agreed sale price, it creates an "Appraisal Gap." In this scenario, we negotiate one of three outcomes:

1. The buyer covers the gap with extra cash.
2. You lower the price to the appraised value.
3. We meet in the middle.

We work to prevent this by providing the appraiser with a data packet supporting our price before they even visit the property.

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