Use this calculator to accurately estimate your total closing costs when selling a home and determine your net proceeds. Understanding these expenses is crucial for budgeting your next move.
Seller’s Closing Costs Calculator
Estimated Net Proceeds to Seller
$0.00
Seller’s Closing Costs Formula
The calculation is a simple subtraction of all costs and remaining debt from the gross sale price.
Where:
Commission Fee = Sale Price × Commission Rate
Other Closing Costs = Sale Price × Other Costs Percentage Formula Source: Forbes Advisor | Formula Source: Rocket Mortgage
Variables Explained
A breakdown of the key inputs used in this calculator:
- Home Sale Price: The final agreed-upon price of the home.
- Total Real Estate Commission Rate (%): The percentage of the sale price paid to the real estate agents (typically 5% to 6%).
- Estimated Other Closing Costs (%): An estimate of various fees (transfer taxes, title insurance, attorney fees, escrow fees) expressed as a percentage of the sale price. Typically ranges from 1% to 3%.
- Remaining Mortgage Payoff ($): The outstanding balance on your current mortgage and any other loans secured by the property that must be cleared at closing.
Related Calculators
Explore these other financial calculators to plan your home sale and purchase:
- Mortgage Affordability Calculator
- Capital Gains Tax Calculator
- Home Equity Calculator
- New Home Purchase Calculator
What are Seller’s Closing Costs?
Seller’s closing costs are the fees and expenses a homeowner must pay at the closing of a real estate transaction. Unlike the buyer, who pays for loan-related costs, the seller is primarily responsible for expenses related to transferring ownership and compensating their agent. These costs can significantly reduce the profit (equity) received from the sale.
The three largest components of the seller’s closing costs are typically the real estate agent commissions, transfer taxes (or stamp duty, depending on the state), and title/attorney fees. It is common for total closing costs to fall within the range of 5% to 10% of the sale price, depending heavily on the negotiated commission rate and local transfer taxes.
How to Calculate Seller’s Closing Costs (Example)
Assume a Sale Price of $400,000, a 6% commission rate, 2% in other costs, and a $250,000 mortgage payoff:
- Calculate Commission Fee: $400,000 × 0.06 = $24,000
- Calculate Other Closing Costs: $400,000 × 0.02 = $8,000
- Determine Total Closing Costs (TCC): $24,000 (Commission) + $8,000 (Other Costs) = $32,000
- Calculate Net Proceeds: $400,000 (Sale Price) – $32,000 (TCC) – $250,000 (Mortgage Payoff) = $118,000
Frequently Asked Questions (FAQ)
What is the biggest closing cost for the seller?
The largest closing cost for the seller is almost always the real estate agent commission. This fee, which typically ranges from 5% to 6% of the sale price, covers the services of both the seller’s and buyer’s agents.
Are property taxes included in the closing costs?
Property taxes are typically prorated at closing. The seller is responsible for the taxes up to the day of closing, and the buyer takes over from that day. The cost is often handled through a credit/debit on the closing statement rather than being a traditional “cost.”
What is the difference between closing costs and net proceeds?
Closing costs are the *expenses* paid to facilitate the sale. Net proceeds are the total *cash* the seller receives after all costs, fees, and the remaining mortgage balance have been paid off.
Can I negotiate seller closing costs?
Yes, commission rates are often negotiable. Additionally, some fees like attorney or title insurance fees may vary between providers, allowing the seller to shop around and potentially reduce their total costs.