What will I actually net after selling my Deep Ellum loft or condo in 2026 once agent fees, HOA transfer costs, and capital gains are factored in?
On a typical $400,000 Deep Ellum condo sale, you can expect to walk away with roughly $355,000 to $365,000 after commissions, HOA transfer fees, title insurance, and closing costs, and most long-term owners will owe zero in capital gains tax thanks to the federal primary residence exclusion.
Why This Matters Right Now for Deep Ellum Sellers
If you’ve been watching the Deep Ellum market and wondering whether 2026 is the right time to sell your loft or condo, you’re not alone. The median home price in Deep Ellum sits at approximately $548,000, essentially flat year over year (up just 0.07%). Meanwhile, the broader Dallas metro has seen a -3.35% year-over-year price decline. That means Deep Ellum has actually held up better than most DFW neighborhoods, but the window is worth watching carefully.
We’ve worked with several Deep Ellum sellers over the past year who came to us with the same question: “After everything gets taken out, what do I actually keep?” Having closed over 148 transactions across the DFW market, we know that the difference between what you think you’ll net and what you actually net can be $20,000 or more if you’re not running the numbers correctly. So let’s run them together right now.
Agent Commissions on Deep Ellum Condo Sales in 2026
Since the NAR settlement took effect in August 2024, the way commissions work has changed. You now negotiate your listing agent’s commission separately, and buyer’s agent compensation is no longer automatically offered through the MLS. In DFW, total commission typically ranges from 4% to 6% of your sale price, though we’re seeing more variation than ever.
Here’s what that looks like on real Deep Ellum numbers:
- $300,000 condo at 5% total commission: $15,000 in agent fees
- $400,000 loft at 5% total commission: $20,000 in agent fees
- $400,000 loft at 4% total commission: $16,000 in agent fees
- $550,000 unit at 5% total commission: $27,500 in agent fees
What we tell our clients is this: your agent’s commission is the most visible cost, but it’s also where the biggest value gets created. A properly priced, well-marketed Deep Ellum loft can sell weeks faster than one that’s overpriced, and in a market where homes are sitting more than 200 days on average, that speed translates directly into dollars you keep. As a Real Estate Negotiation Expert (RENE), we’ve seen skilled negotiation recover thousands at the closing table that more than offsets the commission cost.
HOA Transfer Costs Specific to Deep Ellum Buildings
This is where Deep Ellum gets unique. Your loft or condo building, whether it’s Canton Lofts on Canton Street, Continental Lofts at 3311 Elm, Adam Hats, Kirby Residences, Futura at 3221 Commerce, or American Beauty Mill, has its own HOA structure with its own fee schedule at closing.
Here’s what you should budget for as a seller:
- Resale certificate or disclosure package: $200 to $500 (required by Texas Property Code §82.157)
- HOA transfer fee: $100 to $500
- Capital contribution fee: Typically 1 to 2 months of your HOA dues (some buildings charge the buyer, some charge the seller, so check your governing documents)
- Estoppel letter: $100 to $250
- Outstanding special assessments: Variable, and this is the one that catches people off guard
One couple selling their Canton Lofts unit came to us thinking their HOA costs at closing would be around $300. When we pulled the resale certificate, we discovered a recently approved special assessment for building envelope repairs that added $2,800 to their seller obligations. They were understandably frustrated, but because we caught it early, we factored it into their pricing strategy from day one instead of having it blow up the deal at the closing table.
So what’s the total HOA-related cost? Budget between $500 and $2,000 on most Deep Ellum buildings, but always request documentation early. Buildings that converted from century-old cotton-gin or Ford-plant warehouses can have deferred maintenance surprises that newer construction doesn’t.
Capital Gains Tax: The Number Deep Ellum Downsizers Fear Most
Here’s where we get to share some genuinely good news. If you’ve lived in your Deep Ellum loft as your primary residence for at least two of the last five years, and you haven’t claimed this exclusion on another property within the past two years, the IRS lets you exclude up to $250,000 in profit if you’re single, or $500,000 if you’re married filing jointly. And because Texas has no state income tax, there’s no state capital gains layer on top.
Let’s walk through a real scenario. Say you’re a single seller who purchased a Deep Ellum condo in 2012 for $180,000. You’ve put $35,000 into renovations over the years, giving you an adjusted cost basis of $215,000. If you sell in 2026 for $400,000, your gross profit is $185,000. That falls entirely within your $250,000 exclusion, so your federal capital gains tax bill is zero. Your Texas state tax bill is also zero.
Even for a married couple who bought a higher-value loft in 2008 for $225,000, added $50,000 in improvements, and sells at $550,000, the gain of $275,000 is comfortably under the $500,000 married exclusion. Again, zero taxes owed.
When would you owe capital gains? If your gain exceeds those thresholds, if the property was used as a rental or investment for part of your ownership, or if you haven’t met the two-out-of-five-year residency requirement. For high earners with modified adjusted gross income above $200,000 (single) or $250,000 (married filing jointly), the 3.8% Net Investment Income Tax can also apply on top of the standard rate, potentially pushing your combined federal rate to 23.8% on gains above the exclusion.
For 2026, the federal long-term capital gains brackets are 0% for single filers with taxable income up to $49,450, 15% for income between $49,450 and $545,500, and 20% above that.
How Neighborhood Perception Affects Your Deep Ellum Net Proceeds
Here’s something most net-proceeds calculators won’t factor in, but it absolutely affects your bottom line: buyer perception.
Deep Ellum remains one of Dallas’ most vibrant areas. You can walk from your front door to Pecan Lodge for world-class brisket, catch a show at The Bomb Factory or Trees, and grab a nightcap at Deep Ellum Brewing Company, all without touching your car keys. With a Walk Score of 98, a Transit Score of 81, and a Bike Score of 82, Deep Ellum is a genuine urban walkability standout in a city that’s not known for walkability.
But we’ll be honest with you: public safety continues to shape how people perceive entertainment districts like Deep Ellum. Isolated incidents of late-night violence, even when they don’t dramatically change overall crime statistics, can make out-of-state relocation buyers more cautious. Some condo buyers and renters will ask more questions about building security, parking lot lighting, and proximity to nightlife corridors.
What does that mean for your sale? It means pricing, presentation, and addressing buyer concerns proactively are even more important here than in quieter neighborhoods. Buyers should evaluate long-term neighborhood trends rather than reacting to any single incident, and it’s our job as your listing team to frame that narrative properly. With 6 years of experience and a focus on East Dallas neighborhoods, we’ve guided Deep Ellum sellers through these conversations many times. The neighborhood’s ongoing redevelopment, walkability, and employment-driven demand continue to be the primary market drivers.
If similar safety concerns persist without visible improvements, it could slow demand short-term. But increased police presence and community safety initiatives have historically restored buyer confidence, and investment in Deep Ellum’s commercial and residential infrastructure shows no signs of slowing.
Your Full Net Proceeds Breakdown for a Deep Ellum Sale
Let’s put it all together for a $400,000 Deep Ellum condo sale. Here’s every dollar that comes off the top:
- Agent commissions (5%): $20,000
- Title insurance (owner’s policy, customarily paid by seller in Texas): $1,800 to $2,400
- Escrow and closing fees: $500 to $1,000
- HOA transfer costs (resale certificate, transfer fee, estoppel): $500 to $2,000
- Property tax prorations: Variable based on closing date
- Mortgage payoff: Whatever you still owe
- Capital gains tax: $0 for most long-term primary residence sellers
Total estimated closing costs (before mortgage payoff): $23,000 to $26,000
Estimated net on a $400,000 sale (assuming no mortgage): $374,000 to $377,000
One Deep Ellum downsizer we worked with last year was stunned when the initial estimate came back. She had mentally prepared for a much bigger tax hit based on what a friend in California told her. After we walked through the Texas advantage for capital gains (no state income tax, no state capital gains) and confirmed her Section 121 exclusion applied, her actual net was nearly $30,000 more than she expected. That changed her entire plan for her next chapter, opening up options in 55+ communities she hadn’t previously considered.
Frequently Asked Questions
Do I pay state capital gains tax when selling a Deep Ellum condo?
No. Texas does not levy a state income tax, and since capital gains are a form of income, there is no Texas state capital gains tax on your property sale. Your only capital gains liability, if any, is federal. Most long-term Deep Ellum owner-occupants will owe $0 thanks to the Section 121 exclusion.
How much are HOA transfer fees in Deep Ellum loft buildings?
HOA transfer costs in Deep Ellum buildings like Canton Lofts, Adam Hats, Continental Lofts, and Kirby Residences typically range from $500 to $2,000 total. This includes the resale certificate ($200 to $500), transfer fee ($100 to $500), and estoppel letter ($100 to $250). Always request your building’s specific fee schedule early.
What is the Section 121 capital gains exclusion for 2026?
If you’ve lived in your Deep Ellum loft as your primary residence for at least two of the last five years, you can exclude up to $250,000 in profit (single) or $500,000 (married filing jointly) from federal capital gains taxes. This has not changed under recent tax legislation.
How long are Deep Ellum condos sitting on the market in 2026?
Ownership inventory in Deep Ellum is thin (roughly 95% of the neighborhood rents), and homes often sit more than 200 days before selling. Proper pricing is critical to avoid extended market time, which increases your carrying costs and eats into net proceeds.
What commission do I pay to sell a Deep Ellum condo in 2026?
Since the August 2024 NAR settlement, commissions are fully negotiable. Total commission in DFW typically ranges from 4% to 6%. On a $400,000 Deep Ellum condo, that means $16,000 to $24,000 depending on your agreement.
Does public safety in Deep Ellum affect my sale price?
It can influence buyer sentiment, especially for out-of-state relocation buyers who research neighborhoods through news reports. However, individual safety incidents are generally not market-moving events. Deep Ellum’s demand is driven primarily by walkability, employment growth, and redevelopment, not any single headline.
What is the median condo price in Deep Ellum right now?
Condos in Deep Ellum start around $225,000, while the overall median home price is approximately $548,000. Townhomes run closer to $540,000. The wide range makes building-specific analysis far more important than neighborhood averages.
Will Deep Ellum prices recover in 2027?
Industry experts are cautiously optimistic. According to the Q1 2026 Home Price Expectations Survey, 58% of housing professionals expect markets currently experiencing softness in Dallas to return to positive price growth by end of 2027.
What is the Net Investment Income Tax and does it apply to me?
The NIIT adds 3.8% on top of your standard capital gains rate if your modified adjusted gross income exceeds $200,000 (single) or $250,000 (married filing jointly). Combined with the 20% top bracket, this could mean a 23.8% federal rate on gains above your exclusion.
Should I sell my Deep Ellum loft now or wait until 2027?
This depends on your personal timeline, equity position, and financial goals. Deep Ellum prices are flat while the broader DFW market is declining 3.35% year over year. Waiting risks further softening, but improving mortgage rates could bring more buyers. We recommend running your specific numbers with a local agent before deciding.
The Bottom Line
Your net proceeds after selling a Deep Ellum loft or condo in 2026 depend on your specific building, purchase price, improvements, and filing status, but the math is more favorable than most sellers expect. Texas charges no state capital gains tax, the federal exclusion covers the vast majority of long-term Deep Ellum owners, and your total closing costs will typically run 6% to 7% of your sale price.
Deep Ellum’s energy, walkability, and cultural identity continue to attract buyers even in a softer market. But pricing strategy, building-specific knowledge, and proactive buyer confidence-building matter more here than in almost any other Dallas neighborhood.
With 84 five-star reviews, recognition as a D Magazine Best Real Estate Agent since 2020, and a MetroTex 40 Under 40 honoree, we take this work personally. If you’re ready to run your specific numbers and figure out exactly what your Deep Ellum sale will put in your pocket, reach out to us at Unlocking DFW Realty. Call or text Jamie Simpson at 214-509-8094, and let’s build your net proceeds plan together.
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