Published on October 12, 2026
Think You’re Paying 6%? That Commission Could Eat Up 40% of Your Equity.
Most homeowners know that selling a home can involve a commission. But many don’t realize how much that commission could take out of the money they expect to bring home.
“Six percent” can sound manageable when you’re thinking about the total value of your house. Once you account for your mortgage payoff, it can look very different.
The commission is calculated on the full sale price. Your lender still needs to be paid back. The commission comes out of the equity that would otherwise be available to you.
Before deciding how to sell, look at what that means in actual dollars.
A $60,000 Commission on $150,000 of Equity
Suppose you sell your home for $1 million and your mortgage payoff is $850,000.
After paying off the mortgage, you have $150,000 in equity before selling costs.
At a hypothetical 6% total commission, you would pay $60,000. That leaves $90,000 before other closing costs.
The commission is 6% of the sale price, but it takes 40% of your equity.
And the expenses don’t stop there. Other closing costs, seller concessions, repairs or repair credits, applicable taxes, and fees would reduce that $90,000 further.
That is a substantial portion of the money you may have been counting on for your next home, retirement, debt repayment, or savings.
You spent years making mortgage payments and maintaining your property. Understanding where that equity goes should be part of your selling plan.
The Same Percentage Can Take a Very Different Bite
Here are a few examples using a hypothetical 6% total commission:
| Sale price | Mortgage payoff | Equity before selling costs | Commission | Share of equity paid in commission | Remaining before other costs |
|---|---|---|---|---|---|
| $300,000 | $240,000 | $60,000 | $18,000 | 30% | $42,000 |
| $500,000 | $350,000 | $150,000 | $30,000 | 20% | $120,000 |
| $750,000 | $600,000 | $150,000 | $45,000 | 30% | $105,000 |
| $1,000,000 | $850,000 | $150,000 | $60,000 | 40% | $90,000 |
Commissions are negotiable. These examples use 6% for illustration, not as a standard or required rate. The remaining amounts exclude other closing costs, concessions, repairs, applicable taxes, and fees, which would further reduce the seller’s proceeds.
Notice that the last three homeowners each have $150,000 in equity. Yet the commission ranges from $30,000 to $60,000 because it is based on the sale price, regardless of how much the seller owes.
A higher home value does not necessarily mean you have more money available to absorb the expense.
Even Without a Mortgage, It’s Still Real Money
If your home is debt-free, the commission consumes a smaller share of your equity. But the dollar amount is just as significant.
At 6%, selling a mortgage-free $500,000 home would mean a $30,000 commission. A $750,000 sale would mean $45,000. A $1 million sale would mean $60,000.
Having more equity does not make those dollars less valuable.
For homeowners who still need to pay off a mortgage, however, the commission can feel like an even bigger bite because it takes a larger share of the proceeds they expected to keep.
Focus on What You’ll Take Home
The sale price matters. So does the amount left after the transaction.
Before choosing how to sell, calculate your estimated net proceeds:
Sale price − mortgage payoff − commission (if you sell with an agent) − other selling costs = estimated take-home amount.
The commission is only one expense. Other closing costs, seller concessions, repair expenses or credits, applicable taxes, and fees come out of your equity in addition to the commission.
In the $1 million example above, the $90,000 remaining after the mortgage payoff and commission is not your final take-home amount. Those additional expenses would reduce it further. Some apply whether you sell with an agent or by owner.
Ask what the commission would cost in dollars and what percentage of your equity it represents. Then compare that with the costs of selling by owner, including any professional support you would hire and any buyer-agent compensation you agree to pay.
The goal is a successful sale that leaves you with the strongest practical outcome.
Selling by Owner Is an Option Worth Understanding
Selling by owner takes preparation, time, and follow-through. You need to price thoughtfully, market actively, respond to buyers, make showings convenient, and handle offers and closing.
But you don’t have to figure out every step without help.
You can hire a photographer, seek pricing guidance, or work with a real estate attorney for contracts and legal questions. Paying for specific services may still leave room for meaningful savings.
Your actual savings depend on the sale price you achieve, your expenses, and any buyer-agent compensation you agree to pay. Other closing costs still apply.
The opportunity is to choose the help you need while keeping more of your hard-earned equity.
How SaveOnYourHome.com Can Help
We built SaveOnYourHome.com to give homeowners the tools and information to sell on their own with greater confidence.
Our completely FREE platform and resources include:
A home listing you can create and share.
AI assistance with your listing description.
Private messaging with interested buyers.
A showing scheduler so buyers can select from times you make available.
A free custom yard sign offer once your listing is live.
Seller guides, educational resources, and a weekly FSBO call.
There are no listing fees, no commissions charged by our platform, and no contracts required to use it.
Our goal is to help you understand the process, build a plan, and keep as much of your hard-earned equity as possible where it belongs: with you.
If you’re considering selling, start by running your numbers. You may discover that the potential savings deserve more attention than you expected.
Explore SaveOnYourHome.com, or bring your questions to our free weekly FSBO call, Wednesdays from 3:00–3:45 PM Eastern.
Just because you’re selling by owner doesn’t mean you’re on your own.