When it is time to sell your home, the most important question to answer is how much am I going to make off the sale? Ask your real estate agent to give you an estimate of the net proceeds/net proceeds worksheet. If you are interested to know how the net proceeds are calculated (keep in mind the agent is likely using a net proceeds calculator, and you can also reach out to the title company you choose to work with to give you this information), see below:
Step 1: Determine the sale price of your home
The first step in calculating seller proceeds is to determine the sale price of your home. This is the amount of money that the buyer will pay for your home. It’s important to note that the sale price may be different from the list price, which is the price that the seller initially sets for the home.
Step 2: Calculate your outstanding mortgage balance
The second step in calculating seller proceeds is to calculate your outstanding mortgage balance. This is the amount of money that you still owe on your mortgage. To calculate your outstanding mortgage balance, you can contact your lender or check your most recent mortgage statement. It’s important to note that your most recent statement won’t include any loan satisfaction charges or additional accrued interest, and if you have a prepayment penalty on your mortgage, you will need to factor that into your calculations.
Step 3: Determine your closing costs
The third step in calculating seller proceeds is to determine your closing costs. Closing costs are fees associated with the sale of your home, such as real estate agent commissions, title insurance, and transfer taxes. The amount of your closing costs will depend on a number of factors, including your location and the sale price of your home. Again, reach out to your real estate agent for a closing cost estimate as part of your seller net sheet.
Step 4: Subtract your outstanding mortgage balance and closing costs from the sale price
The final step in calculating seller proceeds is to subtract your outstanding mortgage balance and closing costs from the sale price of your home. The resulting amount is your seller proceeds. For example, if you sell your home for $500,000, your outstanding mortgage balance is $200,000, and your closing costs are $20,000, your seller proceeds would be $280,000 ($500,000 – $200,000 – $20,000).