💰 House Sale Calculator
Calculate your net proceeds and costs when selling your home
Calculate Your Sale Proceeds
Your Sale Summary
Understanding House Sale Proceeds
Selling your home is one of the most significant financial transactions you'll ever make. Understanding what you'll actually walk away with after all costs and fees are deducted is crucial for making informed decisions about your next move, whether it's purchasing another property, investing, or other financial goals.
What Are Net Proceeds?
Net proceeds represent the actual amount of money you receive after selling your home and paying all associated costs. This includes paying off your remaining mortgage balance, real estate agent commissions, closing costs, and any other expenses related to the sale. Many homeowners are surprised to find that their net proceeds are significantly less than their home's sale price.
Major Costs When Selling a Home
Real Estate Agent Commission: This is typically the largest expense when selling a home, usually ranging from 5% to 6% of the sale price. In most cases, this commission is split between the buyer's agent and seller's agent. On a $400,000 home with a 6% commission, that's $24,000 in agent fees alone.
Mortgage Payoff: Your remaining mortgage balance must be paid in full from the sale proceeds. If you've lived in your home for many years, this balance may be relatively low. However, if you purchased recently or refinanced, you might still owe a substantial amount.
Closing Costs: These include various fees such as attorney fees, title search and insurance, transfer taxes, recording fees, and escrow fees. Seller closing costs typically range from 1% to 3% of the sale price, though this varies by location.
Repairs and Staging: To maximize your sale price, you may need to invest in repairs, fresh paint, landscaping, or professional staging. These costs can range from a few thousand dollars to tens of thousands for major renovations.
Hidden Costs to Consider
- Property taxes: You may need to pay prorated property taxes up to the closing date
- HOA fees: If applicable, these must be current and sometimes prepaid
- Home warranty: Many sellers offer a home warranty to buyers as an incentive
- Moving costs: Professional movers, truck rentals, and storage units add up quickly
- Capital gains tax: If your profit exceeds $250,000 (single) or $500,000 (married), you may owe taxes
Maximizing Your Net Proceeds
To get the most money from your home sale, consider these strategies: Price your home competitively based on recent comparable sales to avoid lengthy market time. Make strategic repairs that offer the best return on investment, such as fresh paint and minor kitchen updates. Negotiate commission rates with agents – some may work for less than the standard rate. Time your sale during peak market season (typically spring) when demand is highest.
Tax Implications
Under current U.S. tax law, if you've lived in your home as your primary residence for at least two of the last five years, you can exclude up to $250,000 of capital gains if you're single, or up to $500,000 if married filing jointly. This exclusion can result in significant tax savings. However, any profit above these thresholds is subject to capital gains tax.
Planning Your Next Move
Once you know your expected net proceeds, you can make informed decisions about your next home purchase. If you're buying another property, you'll know exactly how much you can put toward a down payment. If you're downsizing or relocating to a less expensive area, you might have substantial funds left over for investments or other financial goals.
When to Consult Professionals
While this calculator provides a good estimate, consider consulting with a real estate professional, tax advisor, or financial planner for personalized advice. They can help you understand local market conditions, optimize your tax situation, and ensure you're making the best financial decision for your circumstances.