Home Sale Net Proceeds Calculator
Estimated Sale Summary
Total Commission:
Total Deductions:
Estimated Net Proceeds:
Understanding Your Home Sale Net Proceeds
When selling a home, the final price agreed upon with a buyer is rarely the amount that ends up in your bank account. Various expenses, known as selling costs, are subtracted from the gross sale price during the closing process. Using a Home Sale Net Proceeds Calculator helps you estimate your actual profit so you can plan your next move with confidence.
Major Costs Involved in Selling a House
- Mortgage Payoff: This is usually the largest deduction. It includes the remaining principal on your loan, plus any accrued interest and potential prepayment penalties.
- Real Estate Commissions: Typically ranging from 5% to 6% of the sale price, this fee is split between the buyer's agent and the listing agent.
- Closing Costs: These include transfer taxes, title insurance, escrow fees, and attorney fees. Depending on your location, these usually account for 1% to 3% of the sale price.
- Seller Concessions: If the market is slow or the home needs work, you might agree to pay a portion of the buyer's closing costs or provide a credit for specific repairs.
Calculation Example
Imagine you sell your home for $500,000. Here is how the math might look:
| Sale Price | $500,000 |
| Mortgage Balance | – $320,000 |
| Commission (6%) | – $30,000 |
| Closing Costs & Taxes | – $5,000 |
| Net Proceeds | $145,000 |
Tips for Maximizing Your Sale Profit
To walk away with the highest possible amount, consider the following strategies:
- Boost Curb Appeal: Simple, low-cost landscaping and a fresh coat of paint on the front door can increase the perceived value and lead to higher offers.
- Negotiate Commissions: While 6% is standard, some agents may negotiate their rate, especially in high-priced markets or if you are also buying your next home through them.
- Time the Market: Selling during peak seasons (usually spring) can lead to multiple offers, potentially driving the price above your asking amount and offsetting closing costs.
- Pre-Inspection: Handling major repairs before listing can prevent buyers from asking for large repair credits during the due diligence period.