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Seller Net After Price Cut Calculator

A price cut hurts less than the headline suggests — commission and transfer tax also scale down. This calculator shows the real seller net after a price reduction, including the cascade savings that partially absorb the cut.

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Seller net after cut

$123,950

Net at original list

$137,975

Net reduction from cut

$14,025

Cascade savings (lower commission etc)

$975

pos = cut hurts less than headline

How the math works

A $15k price cut doesn't reduce seller net by $15k — commission and transfer tax scale with price, so a portion of the cut is absorbed by the agents and tax man. On a 6% commission + 0.5% transfer tax, a $15k cut reduces seller net by about $14,025 — $975 cascade savings.

The cascade effect makes price cuts slightly more palatable than the headline suggests. Useful to remind sellers when they're reluctant to cut. Also helps negotiate more comfortably on price concessions during inspection.

How to Use

  1. Enter original list price.
  2. Enter planned price cut.
  3. Enter commission %, transfer tax %, and other selling costs.
  4. Enter mortgage payoff amount.

Frequently Asked Questions

Why does a cut hurt less than it looks?

Commission and transfer tax scale with price. Cutting $15k on a listing with 6% commission means $900 less in commission. The cascade absorbs 6-8% of the cut, depending on local commission and tax rates.

Does this also apply to negotiated concessions?

Yes — same math. When accepting a $10k price reduction vs a $10k seller credit during negotiation, the cascade applies to the price reduction path. Credit doesn't benefit from the cascade.

How do I time multiple cuts?

Avoid. Multiple small cuts condition buyers to wait for more. One meaningful cut (5%+) draws action. If the first cut doesn't work within 30 days, the listing strategy may need a broader rethink.

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