How We Calculate Your Home Sale Proceeds
The home sale proceeds calculator estimates how much you’ll walk away with after selling your home by accounting for costs specific to your area. Here’s a breakdown of how we calculate your net proceeds and what each factor means.
Estimated Home Sale Proceeds
This is the amount you’ll receive after deducting costs like mortgage payoff, agent fees, and taxes from the sale price.
- Key Components: Sale price, mortgage balance, and various transaction fees.
- Why It’s Important: It helps you understand your final takeaway after selling your property.
Key Components
- Sale Price: The final price agreed upon with the buyer.
- Mortgage Balance: The remaining balance on your home loan.
- Transaction Fees: Includes closing costs, title insurance, and other expenses.
Why It’s Important: Knowing your net proceeds gives you a clear picture of how much cash you’ll have for your next move.
Estimated Sale Price
Your home’s estimated sale price is the foundation for calculating net proceeds.
How to Estimate:
- Use free valuation tools or request a local VetHomeSearch agent for a professional market analysis.
- Compare recent sales of similar homes in your area for a realistic estimate.
Market Impact:
- Your sale price is influenced by local trends, demand, and the condition of your property.
Real Estate Agent Commission
Agent commissions represent one of the most significant costs in a home sale.
Standard Fees:
- Traditional agents charge 5–6%, split between the listing and buyer’s agents.
Outstanding Mortgage Balance
Your current mortgage balance is subtracted from the sale price to determine your net proceeds.
- Why It Matters: Your mortgage balance directly impacts how much you’ll take home.
- Accurate Estimate: Use your latest statement to ensure accurate calculations.
Excise Tax
This tax is a fee for transferring ownership of the property to the buyer.
- Cost Basis: The tax is based on the home’s sale price and varies by state.
- Paid At Closing: Deducted as part of the closing costs.
Title Insurance
Title insurance protects the buyer against any claims or defects in the home’s title.
- Seller’s Responsibility: In some states, sellers are required to cover this cost.
- Coverage: Protects the buyer from liens or ownership disputes.
Escrow Fees
Escrow fees cover the services of an escrow or title company during the transaction.
- Role of Escrow: They manage funds, documents, and ensure a smooth closing process.
- Flat Fee: Typically included in your closing costs.
Miscellaneous Fees
Additional costs can arise during the home sale process.
- Examples: Recording fees, HOA dues, or transfer fees.
- Considerations: These small costs can add up, so factor them into your budget.
Thinking About Selling Your Home?
Ready to take the next step in your home-selling journey? Connect with a local VetHomeSearch agent today. We specialize in helping veterans and their families navigate the selling process, ensuring you get the most out of your sale.