Your sale price and the amount that lands in your account are two very different numbers. Many Sioux Falls sellers use 7% to 9% of the sale price as a rough planning range for selling expenses before subtracting their mortgage payoff, but your actual costs depend on the services and compensation you negotiate, taxes, title charges, and the terms of your sale.
Here’s the question I get from almost every seller before we list: “After everything, what do I actually walk away with?” It’s the right question. Let me walk you through a practical way to estimate your bottom line.
What are net proceeds?
Your net proceeds are what remains after selling expenses, your mortgage payoff, and any buyer credits are subtracted from the sale price. The sale price is the exciting number. The net is the one that actually matters to your next move.
Costs that may come out of your sale price
Real estate compensation
This is often the largest selling expense, but there is no standard or legally fixed commission rate. Compensation is fully negotiable. Since the real estate practice changes that took effect in August 2024, offers of compensation to a buyer’s broker are not displayed on an MLS. A seller may still choose to offer buyer-broker compensation off-MLS, but the amount and whether it is offered are decisions made through negotiation. The National Association of REALTORS® explains the current rules here.
South Dakota’s real estate transfer fee
South Dakota law imposes a transfer fee of $0.50 for each $500 of value, or fraction thereof, paid by the grantor. That works out to approximately $330 on a $330,000 sale. You can review the exact rule in South Dakota Codified Law 43-4-21.
Title and closing charges
Your closing statement may include the owner’s title insurance policy, settlement or closing fees, recording charges, and other transaction-specific items. The amount varies with the sale price, title company, contract, and which party agrees to pay each charge.
Prorated property taxes
South Dakota property taxes are paid in arrears. At closing, the parties settle the seller’s share for the period the seller owned the home. This is less an extra fee than an accounting of your portion of the tax bill.
Buyer concessions and repairs
A seller may agree to contribute toward a buyer’s closing costs or provide a credit after inspections. Whether that makes sense depends on your home’s condition, pricing, competing offers, and the overall terms—not just the headline price.
Then subtract your mortgage payoff
Your mortgage payoff is the remaining loan balance plus interest through the closing date and, in some cases, a processing fee. It is not always identical to the balance on your latest statement. Your lender supplies the official payoff amount during the transaction.
This is why two people selling similar homes for the same price can receive very different proceeds: the amount each still owes may be dramatically different.
A simple way to estimate your net
- Start with a realistic expected sale price based on recent comparable sales.
- Subtract estimated selling expenses.
- Subtract your current mortgage payoff.
- Subtract any buyer credits, repair allowances, or other agreed costs.
Example: A $330,000 sale minus an illustrative 8% in selling expenses ($26,400) and a $180,000 mortgage payoff leaves estimated proceeds of $123,600 before any additional credits or adjustments.
This example is for planning purposes only. A personalized seller net sheet uses your estimated price, actual loan payoff, negotiated compensation, taxes, title charges, and likely concessions.
What can help protect your net?
- Price strategically from the start. A realistic price can attract stronger attention and reduce the risk of chasing the market through repeated reductions.
- Evaluate the full value of your representation. Compensation matters, but so do preparation, marketing, communication, negotiation, and the final net result.
- Prepare thoughtfully. Cleaning, repairs, and presentation can help, while large presale renovations do not always return what they cost.
- Compare the entire offer. Price, financing, inspection terms, closing date, concessions, and certainty all affect your bottom line.
If you are planning your next move, explore my Sioux Falls neighborhood guides to compare areas and find the right fit.
Frequently asked questions
How much do sellers pay in closing costs in South Dakota?
There is no single amount that applies to every sale. Your expenses may include negotiated real estate compensation, South Dakota’s transfer fee, title and closing charges, prorated property taxes, mortgage payoff expenses, repairs, and buyer concessions. A seller net sheet is the best way to estimate your specific transaction.
Does the seller have to pay the buyer’s agent?
No automatic or standard payment applies. Compensation is negotiable. A seller may choose to offer buyer-broker compensation off-MLS, or a buyer may request it as part of an offer, but it is a transaction-specific decision.
Is there a transfer tax when I sell a house in South Dakota?
South Dakota imposes a real estate transfer fee of $0.50 per $500 of value or fraction thereof, paid by the grantor under state law.
Do I pay capital gains tax when I sell my home?
You may qualify to exclude up to $250,000 of gain, or up to $500,000 on many joint returns, if you meet the federal ownership and use tests. The rules include exceptions and reporting requirements, so review the IRS guidance for selling your home and consult a qualified tax professional about your circumstances. South Dakota does not impose an individual state income tax, but federal tax rules still apply.
What is the difference between sale price and net proceeds?
Sale price is the amount the buyer agrees to pay. Net proceeds are what remains after all selling expenses, mortgage payoff amounts, credits, and closing adjustments are deducted.
Want your real bottom-line number?
If you are thinking about selling in Sioux Falls, I’m happy to prepare a personalized net sheet using your estimated sale price, loan payoff, and likely costs—so you can make decisions with a clearer picture before you list.
This article provides general educational information and is not legal, tax, or financial advice. Costs and tax treatment vary. Consult your closing professional, lender, attorney, or tax adviser about your situation.