Selling a house with a mortgage can leave you with a profit if the price is higher than what you owe. But some sellers walk away with little or even owe money after fees. To help you estimate where you’ll land, here’s a plain-English breakdown inspired by Local Records Office’s list.

Where You Pay the Most at Closing

Closing is handled by a neutral third party. Depending on your state, that could be a title company, an escrow company, or an attorney. They collect the buyer’s money, pay off your mortgage, and then pay everyone else who is owed. Many sellers are surprised by how much gets paid out before they see what’s left. You won’t always get “hit hard,” but you will see a lot of deductions.

Common Commission Fees

Before you get your proceeds, agents are paid. The listing agent and the buyer’s agent typically share a commission that’s agreed to in your listing contract. It’s a percentage of the sale price. If the sale proceeds aren’t enough to cover what’s owed and the agreed fees, you may need to make up the difference out of pocket. No one likes that, but it can happen.

Other Closing Costs

Beyond commissions, there are closing costs. These can include title and escrow fees, attorney fees, recording fees, and insurance items. A common ballpark for the buyer’s side is about 1% of the purchase price, sometimes up to 3%, and sellers have their own smaller set of fees. Costs aren’t the same in every state or deal, so don’t assume they’ll all be high. Ask for a detailed estimate early.

Property Taxes You Might Still Owe

After paying the people involved, taxes come next. In many places, property taxes are paid in arrears, which means you may owe for the time you have already lived in the home. The buyer usually doesn’t cover your past-due share. Amounts vary a lot by location. A rural property might be very low, while a downtown condo could run a few hundred dollars a month. For example, if taxes are $300 a month and you owe two years, that’s $7,200 due at closing.

Selling With a Mortgage Still on the Home

Yes, you can sell even if you still owe on your mortgage. The closing agent uses the sale money to pay off the loan and any other liens. If the sale price is higher than all debts and fees, you get the leftover as your profit. If it’s lower, you’ll have to cover the shortfall. That’s why getting an early net sheet from your agent or closing company is key. It shows whether you’ll make money or need to bring cash.