Most listing appointments are won or lost on one number, and it isn't the list price. It's what the seller actually keeps.
Agents who lead with "I think we can get $1.4M" are competing on optimism. Agents who put a net sheet on the table are competing on competence — and the second one is much harder to out-promise.
What comes out of a California sale
Working from a $1,400,000 sale in Los Angeles County, outside the City of LA:
Sale price $1,400,000
Mortgage payoff -$ 620,000
Listing brokerage compensation (2.5%) -$ 35,000
Buyer-side compensation, if seller pays -$ 35,000
County transfer tax ($1.10 per $1,000) -$ 1,540
City transfer tax (varies — 0 to 0.45%+) -$ 0
Escrow fee (~$2 per $1,000 + $250) -$ 3,050
Owner's title policy -$ 2,800
Natural hazard disclosure report -$ 125
County + city retrofit compliance -$ 400
Home warranty, if offered -$ 600
Termite/pest work, if negotiated -$ 1,500
Repairs from request-for-repairs -$ 4,000
Property tax proration -$ 2,300
HOA docs + transfer fee, if applicable -$ 500
Recording + misc -$ 150
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Estimated seller net $ 693,035
That seller has been telling friends they're "getting 1.4." They're getting about $693,000, before any capital gains exposure.
Numbers vary by county, city and negotiation. Escrow and title in Northern California are often structured differently from the south, and who pays which fee is customary rather than statutory — it's negotiable, and it changes.
The line items that surprise people
Buyer-side compensation. Since the NAR settlement changes took effect, this is negotiated rather than assumed, and it must be discussed explicitly. Some sellers now offer nothing; many still offer something to stay competitive. Either way, put it on the net sheet as a scenario, not a footnote — and show them both versions.
Transfer taxes stack. County plus city. Los Angeles City adds its own on top of the county's, and above $5M, Measure ULA adds 4% of the entire price. Santa Monica, Culver City and others have their own high-value tiers. Confirm the specific jurisdiction — the mailing address is not the jurisdiction.
Property tax proration. California bills in arrears on a July–June fiscal year. Depending on close date, the seller may owe several months at closing. Sellers routinely forget this and treat it as a surprise.
Repairs. Not knowable up front, which is exactly why you should carry a placeholder. A net sheet showing $0 for repairs is a net sheet that will be wrong.
Capital gains — flag it, don't calculate it
Primary residence exclusion is $250,000 single / $500,000 married filing jointly, subject to the ownership and use tests.
A couple who bought in 1998 for $310,000 and sells at $1.4M has roughly $1.09M of gain before adjustments. The $500,000 exclusion leaves meaningful taxable gain — federal, plus California, which taxes capital gains as ordinary income.
Do not compute this for them. Basis adjustments, improvements, depreciation recapture on any rental period, and prior deferrals all change the answer. Say this instead:
"There's likely a taxable gain here beyond the exclusion. I'm not the right person to size it, but you want to know the number before you commit to a price — can we get your CPA on a call this week?"
You can sketch the shape with our capital gains calculator — as a conversation starter, not a filing position.
How to use a net sheet to win the listing
Bring three, not one. Ask price, likely price, and a realistic low. Sellers who see the range trust the middle number more than they'd trust a single confident figure.
Show it before you're asked. The agent who volunteers the net number reads as honest. The agent who produces it after the seller asks reads as caught out.
Put your assumptions in writing on the sheet. "Assumes 2.5% buyer-side compensation, $4,000 repair credit, close 15 August." When something changes, you update an assumption rather than defending a number.
Never round in your own favour. If you're unsure, estimate high on costs. A seller who nets more than you projected is delighted. One who nets less remembers it at the next listing, and tells people.
The competitive point
Most sellers interview two or three agents. In our experience they are usually shown one list price, one commission conversation, and no net sheet at all.
Being the only person in that process who tells them what they actually keep is a much stronger position than being the one who guessed the highest price.
Full breakdown, editable with a client on a call: net proceeds calculator.
General information for licensed agents, not tax or legal advice. Fees, customs and transfer taxes vary by county, city and negotiation; capital gains depends on facts only a CPA can properly assess. Verify current figures before presenting them to a client.