1. What is Net Proceeds Calculation?

The net proceeds calculation determines how much money you'll actually receive from selling your home after accounting for agent fees and closing costs. It's the final amount that will be transferred to you after all deductions.

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

• Sale Price — The amount your home sells for
• Agent Fees — Typically 5-6% of sale price (paid to real estate agents)
• Closing Costs — Various fees associated with finalizing the sale (typically 1-3% of sale price)

Explanation: This calculation shows you the actual amount you'll receive after paying all selling expenses.

3. Importance of Net Proceeds Calculation

Details: Knowing your net proceeds helps with financial planning for your next home purchase, paying off existing mortgages, or other financial obligations. It prevents surprises at closing.

4. Using the Calculator

Tips: Enter all values in dollars. For accurate results, get estimates of agent fees (usually a percentage of sale price) and typical closing costs for your area.

5. Frequently Asked Questions (FAQ)

Q1: What's included in closing costs?
A: Typically includes title insurance, escrow fees, transfer taxes, prorated property taxes, and possibly other local fees.

Q2: Are agent fees negotiable?
A: Yes, commission rates are negotiable. Typical range is 5-6% but can vary by market and agent.

Q3: How accurate is this calculator?
A: It provides a good estimate, but actual closing costs may vary based on location, lender fees, and other factors.

Q4: When will I receive my net proceeds?
A: Typically at closing, when all documents are signed and funds are disbursed.

Q5: Are there any hidden costs not included here?
A: Possible additional costs include mortgage payoff, liens, or repairs required by the buyer.