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Home sale proceeds are calculated by adding up the costs that you will incur at the time of selling your home, such as legal fees, outstanding mortgage, taxes, realtor commission, moving cost and deduct it from the selling price of the home. The amount you get from subtracting the costs from the sale price is the final home proceeds you will get.
- Home Sale Calculator
- How to Calculate Your Home Sale Proceeds
- Breaking Down The Cost of Selling A House
- Ways to Maximize Your Home Sale Profit
- Sources
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How this calculator works
You can adjust the numbers in our home sale calculator based on variables like: 1. Your estimated sale price 2. Additional selling costs (like moving) 3. Realtor fees Use our other calculators to drill down on specific costs for selling👇 Real estate commission | Closing costs | Capital gains | Mortgage payoff
Realtor commission
Real estate agents typically charge 5-6% of the sale price to sell your home. Realtor commissionis usually split between the: 1. Buyer’s agent (1.5%) 2. Buyer’s broker (1.5%) 3. Listing agent (1.5%) 4. Listing agent’s broker (1.5%) *Assumes a total 6% commission a 50/50 split between each agent and their broker. In other words, when $18,000 (6%) is deducted from your $300,000 home sale at closing, your agent only walks away with about a quarter of it (roughly $4,500, in this scenario).
Closing costs
Seller closing costs range from 1-3% of the final sale price. Some of these costs can be negotiated, but typically seller closing costs include: 1. Prorated property taxes— The remaining portion of property taxes that you owe in the calendar year may be due at the time of the sale. 2. Title fees— Fees for changing the ownership on the property’s title. 3. Transfer taxes — Taxes that some counties/municipalities charge for transferring ownership of a residential property.
Capital gains taxes
Capital gain occurs when you make a profit from the sale of your home. Use our capital gains calculator to figure out what your gain might be. The total tax on the gain depends on your marginal tax rate, and whether or not you qualify for the $250,000 or $500,000 exemption based on two years or more of residency. (see above) We’re not tax professionals, but we recommend speaking with one if you have any questions about your tax situation!
Get a lower commission rate
Most people pay 5-6% commission (2.5-3% per side) without realizing that realtor commissions can be negotiated. As a home seller, it’s difficult to negotiate buyer’s agent commission — sellers usually offer a standard rate in your area, but you can negotiate realtor fees with your listing agent. Local agents might not agree to reduce their listing fee for you, but a reduction of even 1% could save you thousands of dollars. We pre-negotiate a reduced commission with top agents from well-known...
Don’t sell before 2 years
If possible, you should wait to sell until you’ve owned your home for at least two years. Life circumstances might force you to sell, but selling before the two-year mark will result in a steep capital gains tax that could affect your profits. Thanks to the IRS’s Section 121 exemption, it’s unlikely that you’ll have to pay any capital gains taxes. The exemption makes that first $250,000 gain tax free, or the first $500,000 if you’re married and filing jointly. » READ: Selling a House Before T...
Build more equity in your home
You’ll net more money from your home sale by continuing to pay off your mortgage. That’s because the more of your debt that you pay off, the more of the home you actually own — a concept called “equity”. Home equity represents the dollar amount of how much of your home you own once your current mortgage balance is factored out. Home equity = Current home value – current mortgage balance For example, if Susan’s house is currently worth $350k and she’s got $100k left on her mortgage, her equity...
Internal Revenue Service. ‘Topic No. 701: Sale of Your Home.’ Jan. 24, 2022. https://www.irs.gov/taxtopics/tc701National Association of Realtors. ‘NAR Reaches Agreement to Resolve Nationwide Claims Brought by Home Sellers.’ March 2024. https://www.nar.realtor/newsroom/nar-reaches-agreement-to-resolve-nationw...Consumer Financial Protection Bureau. ‘Know Your Rights: Your Mortgage Servicer Must Comply with Federal Rules.’ Sept. 2020. https://files.consumerfinance.gov/f/documents/cfpb_know_your_rights_mort...Remodeling Magazine. ‘2022 Cost vs. Value Report.’ https://www.remodeling.hw.net/cost-vs-value/2022/How Much Does it Cost to Sell a House? True Costs Revealed. Learn more about the hidden costs of selling,and how you can save when you’re ready to list your home. What Companies Offer the Lowest Real Estate Commission Fees?We break down the best low commission services in real estate. Learn where to go to save money on realtor commissions without c...
Net Proceeds Calculator. Use net proceeds cost calculator to help estimate your closing costs and net proceeds from the sale of a home. You will need to know your closing date, sale price and information about your mortgages and other payments. Please remember that this is an estimate, the actual fees, expenses and final mortgage balances may ...
Our home sale calculator estimates how much money you will make selling your home. ESTIMATED NET PROCEEDS $269,830. Desired selling price. $ 302,000. Remaining mortgage owed. $ 0. Est. selling costs (10.65 %) $ 32,170.
Use our home sale calculator to estimate the cost of selling and the net proceeds you could earn from the sale. Home sale price Enter the selling price of your home. Real estate agent fees In a traditional home sale, the seller pays fees to both their agent and the buyer's agent. It's common for the total commission to be around 5-6% of the ...
Aug 15, 2022 · To calculate your home proceeds, you will need to add up the costs of selling your home, which includes your remaining mortgage, taxes, legal fees, commissions and more. You will then subtract the total cost of selling your home from the final sale price of your property and you will get your home proceeds.
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Total Costs as Percentage of Sale Price: The total selling costs expressed as a percentage of the home sale price. Estimated Net Proceeds: Your expected net proceeds from the sale, calculated by subtracting the mortgage balance and total costs from the home sale price. Use this information to make informed decisions regarding your property sale.
