1. What is the Home Sale Proceeds Calculator?

The Home Sale Proceeds Calculator helps homeowners estimate the net amount they'll receive after selling their property by accounting for sale price, closing costs, and remaining mortgage balance.

2. How Does the Calculator Work?

The calculator uses a simple formula:

Where:

• \( Sale\ Price \) — Final selling price of the home
• \( Closing\ Costs \) — All fees associated with the sale (typically 1-3% of sale price)
• \( Mortgage\ Payoff \) — Remaining balance on your mortgage

Explanation: This calculation shows the actual amount you'll walk away with after all obligations are settled.

3. Importance of Calculating Net Proceeds

Details: Understanding your net proceeds helps with financial planning for your next home purchase, estimating tax obligations, and making informed decisions about whether to sell.

4. Using the Calculator

Tips: For most accurate results:

• Use realistic sale price (consider recent comparable sales)
• Include all closing costs (agent commissions, title fees, transfer taxes)
• Get exact mortgage payoff amount from your lender

5. Frequently Asked Questions (FAQ)

Q1: What's included in closing costs?
A: Typically includes realtor commissions (5-6%), title insurance, escrow fees, transfer taxes, and any seller concessions.

Q2: How do I find my mortgage payoff amount?
A: Contact your lender for a payoff quote, which may differ from your current balance due to per-diem interest.

Q3: Are there other costs I should consider?
A: You may need to account for capital gains taxes, prorated property taxes, or repairs required before closing.

Q4: What if my proceeds are negative?
A: This means you owe more than the sale price - you'll need to bring cash to closing or negotiate a short sale with your lender.

Q5: How accurate is this calculator?
A: It provides a good estimate, but actual proceeds may vary based on final closing costs and adjustments.