A seller needs to be able to estimate the net proceeds that he will achieve from the sale of his home. It is possible to make a fairly accurate estimate based on standard guidelines, although there will always be some minor adjustments to be made before the title company comes to the final figure at closing.

Before you get to the closing table there are two early costs that you may incur. One is the cost of any minor repairs that the buyer may request following a home inspection. The maximum amount that you are required to contribute is agreed by both sides in the contract, and is typically in the range $500 to $2000 for general repairs, and a similar amount for any wood rot that is discovered.

The second item is optional. You may want to encourage potential purchasers by offering a home buyers warranty to protect them against breakdown of electrical and other equipment in the home for a year after the purchase date. If you opt to do this it will usually cost between $450 and $650. This item can often be included in the closing calculations rather than being paid up front.

In calculating closing costs, I have made a number of assumptions, the most important of which is that the listing broker's commission is 6% of the contract price.

If your broker works to a different commission level, as many do, then you should adjust the calculations to take this into account. Some brokers also add a transaction fee in addition to the commission.

If there is a mortgage, then you will need to obtain a settlement figure from your lender, including any settlement charges that they impose, and deduct this figure from the bottom line.

When you get close to the closing date for your sale, the title company's closing agent will provide you with a settlement statement that will show their final calculations and details of each adjustment they have made.

We will receive a copy of this at the same time, so if you have any questions or concerns about any figures on the statement you will be able to discuss them with us before you sign the final documents that commit you to closing the sale.

Typical sellers' costs

Agent's commission. Variable - typically 6% of the contract price.

Transaction fee. Variable - in our case, none.

Documentary stamps. 0.7% of the contract price.

Title insurance. Sliding scale, typically around 0.6% of the contract price.

Title company charges (search, closing). Typically around $325.

Mail-away charges if you are not present at closing. Typically around $75.

Property tax adjustment. Paid in arrears, so seller will owe from the start of year to closing.

HOA and other fees paid in advance. Seller receives credit from closing to end of the year.

Taking average figures for each item, and ignoring any mortgage settlement figure and adjustments for payments pre-paid or due, the following would be typical figures for cash to the seller at closing. I need to repeat that these are only guesses, though, so don't expect your bottom line to match exactly.

Selling price $200,000. Net to seller $185,000

Selling price $225,000. Net to seller $208,000

Selling price $250,000. Net to seller $231,250

Selling price $275,000. Net to seller $254,500

Selling price $300,000. Net to seller $277,500

Selling price $400,000. Net to seller $370,000

Selling price $500,000. Net to seller $462,500