What does selling actually cost?

1. Agent commissions

Commissions have traditionally been the largest cost, often 5–6% of the sale price split between the two sides’ agents. That said, commissions are negotiable and always have been. Since the 2024 NAR settlement, sellers are no longer expected to set the buyer’s agent fee through the listing service. Buyers now negotiate their agent’s compensation directly, which has put downward pressure on total commissions. On a $2,000,000 sale, every percentage point you negotiate away is $20,000 kept.

A private, direct sale, where buyer and seller each hire a real estate attorney instead of two agents, can reduce this line to a few thousand dollars in legal fees. It’s not for everyone, but for a straightforward sale it’s worth understanding.

2. San Francisco transfer tax

San Francisco charges a transfer tax when property changes hands. The rate depends on the sale price, and the rate for your bracket applies to the whole price, not just the part above the line. These are the current city rates:

Notice the jump at $5 million: a home that sells for $4,999,999 owes about $37,500, while one that sells for $5,000,000 owes $112,500. By custom in SF the seller usually pays this tax, though it’s negotiable. Current rates are published by the Office of the Assessor-Recorder.

3. Getting the home ready

• Staging: roughly $5,000–$15,000 for a full SF house, with vacant homes and luxury listings at the top of that range or beyond. Monthly furniture rental adds up if the home sits.
• Pre-sale repairs and paint: highly variable, anywhere from a few thousand dollars to much more if inspections turn up section-one work.
• Inspections and disclosures: usually around $800–$2,000 for the standard SF pre-sale package (general inspection $350–$700, pest $100–$250, sewer scope $200–$400, plus report fees and any compliance items).

4. Capital gains tax (read this part)

If you’ve owned a San Francisco home for decades, this can be the biggest number on the page, and it’s the one people are most often surprised by.

• The federal Section 121 exclusion lets you exclude up to $250,000 of gain if you file single, or $500,000 married filing jointly, provided the home was your primary residence for at least two of the last five years.
• Gains above the exclusion are taxed: federal long-term capital gains (up to 20%), the 3.8% net investment income tax for higher incomes, and California income tax (up to 13.3%, since California taxes gains as ordinary income).
• Your gain is the sale price minus your cost basis: what you paid, plus documented capital improvements over the years, plus selling costs. Old receipts for that foundation work or the remodel in 1998 are suddenly worth serious money. Gather them.

If you bought long ago, talk to a CPA before you list. The difference between a well-planned sale and a surprise tax bill can be six figures. This page is not tax advice. A one-hour conversation with a professional who can see your numbers is cheap insurance.

5. The move itself

For a local move, the movers themselves run about $2,000–$5,000 for a four-bedroom house. Overlap between homes, storage, and the general friction of relocating usually bring the all-in cost to $3,000–$15,000, more for long distances. It’s smaller than the items above, but you still pay it.