Know Before You Sell

The complete seller guide: NAR settlement explained, net proceeds calculator, capital gains rules, and local expertise that moves homes.

Estimate My Proceeds What Changed in 2024

The NAR Lawsuit, Explained

The real estate industry changed fundamentally in 2024. Here is what happened and what it means for you as a seller.

2019

Sitzer/Burnett Case Filed

Missouri home sellers sued NAR and major brokerages, alleging that the requirement to offer buyer-agent compensation through the MLS artificially inflated commissions and violated antitrust law.

Oct 2023

$1.8 Billion Verdict

A federal jury found NAR and the brokerages liable. The verdict, subject to trebling, exposed the industry to billions in damages and put the entire commission structure under scrutiny.

Mar 2024

$418M Settlement Reached

NAR agreed to pay $418 million and change its rules. Sellers would no longer be required to offer buyer-agent compensation through the MLS.

Aug 17, 2024

New Rules Take Effect

MLS platforms removed blanket buyer-agent compensation offers. Buyers must now sign written representation agreements before touring homes. Seller obligations shifted significantly.

What Changed for Sellers

The settlement rewrote long-standing norms. Understanding the differences helps you negotiate from a position of strength.

Before · Pre-August 2024

  • xSellers routinely offered 2.5-3% to buyer's agent via MLS
  • xBuyer agent compensation was baked into listing agreements
  • xBuyers rarely negotiated or paid their own agent directly
  • xTotal commission 5-6% was industry standard
  • xCompensation terms not always disclosed upfront

After · Post-August 2024

  • vSeller decides whether to offer buyer-agent compensation
  • vBuyers must sign written agreements before touring your home
  • vCompensation is fully negotiable and must be disclosed
  • vTotal commissions trending lower in competitive markets
  • vSellers have more control and clarity on net proceeds
01

You Are Not Required to Pay

Offering buyer-agent compensation is now optional. However, strategically offering it can attract more buyers and offers, especially in a slower market.

02

Buyers Come Pre-Committed

Every buyer who tours your home has signed a representation agreement. They are serious, pre-qualified, and ready to move, which reduces wasted showings.

03

Transparent Negotiation

All compensation terms must be in writing and disclosed. This creates a cleaner transaction with no surprises at closing for either party.

Net Proceeds Calculator

Get a realistic picture of what you take home. Adjust any field and the estimate updates instantly.

Sale Price$950,000
Mortgage Payoff-$420,000
Your Agent (2.5%)-$23,750
Buyer Agent Offer (2.5%)-$23,750
Escrow & Title-$4,500
Transfer Tax-$1,045
Repairs & Staging-$3,000
Other-$0

Estimated Net Proceeds $473,955

This is an estimate for planning purposes only. Actual closing costs vary. Contact Allure Real Estate for a precise seller net sheet tailored to your property.

Frequently Asked Questions

Clear answers to the questions sellers ask most in today's market.

Before August 2024, sellers almost universally offered buyer-agent compensation through the MLS, typically 2.5-3% of the sale price. That requirement is now gone.

You choose whether to offer buyer-agent compensation, how much, and under what terms. Many sellers still offer it strategically to attract more offers, but it is no longer mandated.

No, you are not required to. However, this is a nuanced negotiating decision. In a hot seller's market, you may choose not to offer it. In a balanced or buyer's market, offering it can significantly increase your buyer pool and drive up your final sale price.

The key insight: a higher offer from a buyer who needs you to cover their agent's fee may still net you more than a lower offer where you pay nothing. Run the numbers on each offer, not just the commission line.

If the home is your primary residence, you may qualify for the Section 121 exclusion: up to $250,000 in capital gains if you file single, or $500,000 if married filing jointly.

To qualify, you must have lived in the home as your primary residence for at least 2 of the last 5 years. If your gain exceeds the exclusion, the overage is taxed at long-term capital gains rates. Consult a tax advisor for your specific situation.

A 1031 exchange (like-kind exchange) lets you defer capital gains taxes by reinvesting proceeds from a sold investment property into another investment property of equal or greater value.

It does not apply to primary residences. However, if you own a rental property, a 1031 could be a powerful tax strategy. You have 45 days to identify the replacement property and 180 days to close. Work with a qualified intermediary.

Historically, spring (March through May) brings the most active buyers and strongest offers in the East Bay. Inventory is limited and motivated buyers compete aggressively.

That said, the East Bay's desirability as a BART-accessible region means demand is relatively consistent year-round. The best time to sell is when your home is truly ready: staged, cleaned, any deferred maintenance addressed, and priced correctly from day one.

Look for three things: hyper-local market knowledge specific to East Bay neighborhoods, a proven track record of sales-to-list-price ratios above market average, and a transparent marketing plan.

Interview at least two agents. Ask for a comparative market analysis (CMA), their average days on market, and exactly how they will market your property beyond the MLS. Agent quality has a measurable impact on your final sale price.

Ready to Know Your Number?

Get a precise seller net sheet, a current market analysis, and a clear plan tailored to your East Bay property.

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Is Now a Good Time to Sell in Daly City?

Daly City's proximity to San Francisco keeps demand steady year-round. Here's what the current market tells us.

~21

Average Days on Market

Well-priced Daly City homes are moving in under 3 weeks. Overpriced homes sit 60+ days and often require price cuts that signal weakness to buyers.

103%

Sale-to-List Ratio

Homes in Daly City are selling above asking price on average. Multiple-offer situations remain common in the Westlake and Serramonte neighborhoods.

Spring

Peak Selling Season

March through June drives the highest buyer activity. That said, limited inventory in fall and winter means less competition from other sellers, which can work in your favor.

SF

Driven by SF Demand

Daly City benefits directly from San Francisco's job market. When tech hiring is strong, buyer demand here rises. Remote work flexibility has also brought more buyers who want value without leaving the Peninsula.

How Do You Price Your Home Right?

Pricing is the single biggest decision you'll make. Too high and buyers walk. Too low and you leave money on the table.

CMA

Comparative Market Analysis

A CMA compares your home to recently sold properties of similar size, condition, and location. This is the foundation of any honest pricing conversation and what Allure provides for free.

↑↓

List Price vs. Sale Price

List price is what you ask. Sale price is what you get. In a strong market, strategic underpricing can trigger bidding wars that push your final price well above asking. Your agent's job is to read which strategy fits your home.

The Cost of Overpricing

Homes that sit on the market accumulate stigma. Buyers assume something is wrong. After 30+ days you're likely to get lowball offers and end up netting less than if you had priced correctly from day one.

$/ft

Daly City Price Range

Single-family homes in Daly City currently range from $800K to $1.4M depending on neighborhood, size, and condition. Westlake and St. Francis Heights command the highest premiums. Southern Hills offers the most value per square foot.

Should You Renovate or Sell As-Is?

Not every dollar spent on improvements comes back at closing. Here's how to spend smart.

Worth Doing

  • Fresh interior paint in neutral tones
  • Deep cleaning and decluttering
  • Professional staging
  • Landscaping and curb appeal
  • Fixing obvious defects (leaks, broken fixtures)
  • New hardware on cabinets and doors
  • Professional photography and video

Usually Skip

  • Full kitchen remodel
  • Bathroom gut renovation
  • New flooring throughout
  • Roof replacement (unless required)
  • Additions or structural changes
  • Pool installation
  • High-end appliance upgrades

On Staging

Staged homes sell 73% faster and for 1–5% more than non-staged homes, according to the National Association of Realtors. For a $1M home, that's $10,000–$50,000 in additional proceeds from an investment that typically costs $2,000–$5,000. It is almost always worth it.

From Listing to Close

A California home sale has clear stages. Knowing them keeps you in control.

Week 1–2

Prep & List

Sign the listing agreement, complete required California disclosures, do any agreed-upon repairs or staging, schedule professional photography. Your home goes live on MLS and all major portals.

Week 2–3

Showings & Offers

Open houses and private showings begin. In a healthy Daly City market, well-priced homes receive offers within 7–14 days. Your agent reviews all offers with you and helps you evaluate price, contingencies, and buyer strength.

Week 3–4

Accept an Offer & Open Escrow

Once you accept, escrow opens with a neutral third party. The buyer deposits earnest money (typically 1–3% of purchase price). A 30-day escrow is standard in California, though 21 or 45 days are also common.

Week 4–6

Inspections & Contingencies

The buyer conducts their home inspection, review disclosures, and complete their loan appraisal. California sellers are required to disclose all known material defects. Most contingencies are removed within 17 days by default.

Close

Sign, Fund & Transfer

You sign closing documents at the title company. The buyer's lender funds the loan. The deed records with San Mateo County, and proceeds are wired to you - typically within 1–2 business days of recording.

California Disclosure Requirement: Sellers must complete the Transfer Disclosure Statement (TDS), Natural Hazard Disclosure (NHD), and Seller Property Questionnaire (SPQ), among others. Failure to disclose known material defects can result in legal liability even after closing.

What Are Your Actual Closing Costs?

Sellers in California typically net 6–8% less than the sale price after all costs. Here's the breakdown.

Cost Item Typical Amount Notes
Seller Agent Commission 2–3% Negotiable since NAR settlement
Buyer Agent Commission 0–2.5% Now optional - sellers may offer to attract buyers
San Mateo County Transfer Tax $1.10 per $1,000 On a $1M sale: ~$1,100
Daly City Transfer Tax $7.50 per $1,000 On a $1M sale: ~$7,500
Escrow Fees $1,500–$3,000 Split between buyer and seller typically
Title Insurance (Owner's) $1,000–$2,500 In San Mateo County, seller typically pays owner's policy
Home Warranty (optional) $400–$700 Often offered by seller to attract buyers
Staging & Repairs $2,000–$10,000+ Varies widely by property condition

Estimates only. Actual costs vary by transaction. Use the proceeds calculator above for a personalized estimate.

What Happens After You Sell?

The sale is just the beginning. Here's how to think about what comes next.

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What to Do with the Proceeds

Your options include purchasing another home (potentially tax-deferred via a 1031 exchange), investing in the market, paying off debt, or a combination. A financial advisor can help you optimize based on your tax situation and goals.

Buying and Selling Simultaneously

It's possible, but requires careful coordination. Common strategies include a contingent offer on your next home, a rent-back agreement (staying in your sold home for up to 60 days), or buying first with a bridge loan. We help sellers navigate all three.

Where Daly City Sellers Move

The most common moves we see: upsizing to Pacifica, San Bruno, or South San Francisco for more space; downsizing to a condo in Daly City or Colma; relocating to the East Bay or South Bay for lower prices; or leaving the Bay Area entirely to maximize equity in a lower cost-of-living market.

%

Capital Gains Reminder

If you've lived in your home for at least 2 of the last 5 years, you can exclude up to $250,000 in gains ($500,000 for married couples) from federal capital gains tax. Gains above that threshold are taxed at 0%, 15%, or 20% depending on your income. California taxes all capital gains as ordinary income.

Let's Talk About Your Home

Allure Real Estate

Address 1255 Treat Blvd, Suite 300
Walnut Creek, CA 94597
Our Agents
Parm Rahi Broker · Owner (510) 421-1455
parmrahi@gmail.com
DRE #01727873
Michael Brown Realtor Partner (415) 794-2968
darkbrownie@gmail.com
DRE #01361903
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