Home Selling Calculator: Calculating Your Net Proceeds
Selling a home is one of the largest financial transactions most people will ever make. However, the sale price is rarely the amount that ends up in your bank account. After deducting mortgage balances, agent commissions, closing costs, and taxes, your "Net Proceeds" can be significantly lower. Our **Home Selling Calculator** is designed to give you a clear, transparent breakdown of these costs so you can plan your next move with confidence.
What are Net Proceeds?
Net proceeds refer to the amount of money a seller receives from the sale of a property after all costs and liens (like a mortgage) have been paid.
Formula: Sale Price - Mortgage Payoff - Commissions - Closing Costs = Net Proceeds.
Key Costs When Selling a House
To use the **home selling calculator** effectively, it helps to understand where the money goes:
1. Real Estate Agent Commissions
This is typically the largest expense for a seller. In the US, the standard commission is often around 5% to 6% of the sale price, split between the seller's agent and the buyer's agent.
Example: On a $400,000 home, a 6% commission is $24,000. Our **real estate commission calculator** section allows you to adjust these percentages if you negotiate a lower rate.
2. Mortgage Payoff
You must pay off your existing loan balance at closing. Note that your "Payoff Amount" is often slightly higher than the "Current Balance" shown on your statement due to prorated daily interest. It's wise to add a small buffer in the **net proceeds calculator**.
3. Closing Costs for Sellers
Buyers aren't the only ones who pay closing costs. Sellers typically pay:
• Title Insurance (Owner's Policy): Protects the buyer against title defects.
• Transfer Taxes: A tax charged by the city, county, or state to transfer the deed.
• Escrow/Attorney Fees: The cost of the neutral third party handling the funds.
4. Prorated Property Taxes & HOA Fees
You are responsible for property taxes up until the day of closing. If you haven't paid taxes yet for the current period, money will be deducted from your proceeds to credit the buyer.
How to Maximize Your Profit
Using the **cost to sell house calculator**, you can test scenarios to see how to keep more money:
- Negotiate Commission: Even a 0.5% reduction can save you thousands.
- Sell "For Sale By Owner" (FSBO): You save the listing agent commission (approx 3%) but still usually pay the buyer's agent.
- Minimal Repairs: Focus on cosmetic fixes (paint, cleaning) rather than major renovations which rarely return 100% on investment.
FAQ
Are home sale proceeds taxable?
Usually, no, if it's your primary residence. In the US, individuals can exclude up to $250,000 (couples $500,000) of capital gains from taxes if they lived in the home for 2 of the last 5 years.
Who pays for closing costs?
It is negotiable, but typically sellers pay commissions, transfer taxes, and the owner's title policy. Buyers pay for their loan origination fees and appraisals.
Disclaimer: This calculator provides an estimate. Actual closing costs vary by location, local tax laws, and specific contract negotiations. Consult a real estate attorney or tax professional for exact figures.