How to Calculate Home Sale Proceeds

Net proceeds are what's left after every cost of selling is subtracted from the sale price. The formula is simple — the details are where deals get won or lost.

Net Proceeds = Sale Price
             − Mortgage Payoff
             − Real Estate Commissions
             − Transfer & Recording Taxes
             − Title & Escrow Fees
             − Prorations (taxes, HOA, utilities)
             − Seller Concessions & Repairs
             − Misc. (home warranty, wire fees, etc.)

1. Mortgage payoff (not the loan balance)

Payoff is the loan balance plus interest accrued through the closing date, plus any prepayment penalty or recording fee. Ask the lender for a written payoff statement good through your target closing date — the balance on your last statement is almost always lower than what closing requires.

2. Real estate commissions (post-NAR settlement)

Since August 2024, listing and buyer-agent compensation are separately negotiated and disclosed. Two practical implications:

• Commission is no longer a single 5–6% line item by default. Enter the listing-side rate and any buyer-side concession separately.
• If you offer buyer-agent compensation, it's a seller concession, not a commission — it still comes out of your proceeds, but treat it as a negotiable line you can adjust per offer.

3. Transfer and recording taxes

These vary wildly by state and often by county or city. A few benchmarks:

• Texas, Arizona: no state transfer tax.
• California: ~0.11% county documentary transfer tax; cities like SF and LA add more.
• Florida: 0.70% documentary stamp tax (seller pays).
• Washington: graduated REET, 1.10% up to $525K, scaling to 3.0% above $3.025M.
• New York: 0.40% state + NYC RPTT 1.0–1.425%.

The state-specific calculators in Field Net pre-load these so you don't have to memorize them.

4. Title insurance and escrow

Who pays the owner's title policy is local custom — seller in most of California (Southern), Texas, Illinois, and Arizona; buyer in much of the South and Northern California. Escrow / settlement fees are typically split 50/50, but the contract controls. Title premiums are rate-regulated in some states (TX, FL, NY) and competitive in others (CA, CO).

5. Prorations

The seller credits the buyer for the portion of property taxes, HOA dues, and (sometimes) utilities covering the days afterclosing that the seller hasn't yet paid. In states where taxes are paid in arrears (Florida, Illinois, parts of Texas), this number can be material — sometimes thousands of dollars.

6. Seller concessions and repairs

Inspection negotiations land here: closing-cost credits, repair credits, home warranty for the buyer, and any agreed repairs the seller funds. Build a buffer line for unknown post-inspection asks when you prepare a pre-listing net sheet.

7. The line items everyone forgets

• HOA transfer / status letter fees ($200–$500 typical)
• Wire fees and courier fees ($25–$75)
• Attorney fees in attorney-states (NY, GA, NC, IL, SC)
• Mansion tax (NY sales above $1M — buyer pays, but factor into pricing)
• Capital gains if the gain exceeds the §121 exclusion ($250K single / $500K married)

Net sheet vs. Closing Disclosure

A net sheet is your best estimate. The Closing Disclosure is the final, binding accounting from the settlement agent. Expect movement in title premiums, prorated taxes, and payoff interest between the two. Reset your client's expectations early: net sheets are decision tools, not promises.

Skip the math — use the calculator

Open the Field Net calculator to plug in real numbers, see your estimated proceeds, and download a branded PDF for your listing appointment.

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