Estimate how much money you could make selling your home.
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The profits you make from selling your home are called net proceeds. Your net proceeds are determined by your home’s sale price minus expenses, such as home improvements, staging costs, agent fees and paying off your remaining mortgage.
There are a number of expenses to consider when selling your home. Some are unavoidable, but most costs depend on the services you choose to use.
Common costs include:
Our home sale calculator takes these costs into account when calculating your net proceeds, so you can estimate how much you’re likely to make on your house.
Your house can be sold even if there’s still a mortgage on it. In fact, home sales are one of the most common ways mortgages are paid off. The title company ensures the original mortgage is paid from your home sale proceeds as part of your loan closing.
For most homeowners, the bulk of their home sale proceeds go toward paying off their loan balance, along with closing costs and seller concessions. Any equity leftover can be considered profit from the sale.
The housing market ebbs and flows, but property values tend to rise over time.
Your home equity is determined by comparing what your home is worth to what you currently owe on your mortgage. For example, if you owe $200,000 on your mortgage and are under contract to sell your home for $300,000, then you’re sitting on $100,000 in equity.
It’s important to note that equity does not equal profit. You must factor in the costs of selling your home to estimate your net proceeds.
A net sheet is a document provided by a seller’s real estate agent that estimates home sale proceeds. This typically includes the estimated sale price, closing costs and a rough estimate of the remaining mortgage balance to be paid off at closing.
Any net proceeds you receive as a seller are usually paid to you by the escrow company within 24 hours of closing, and you’ll often receive payment the same day as the sale. Your title company should be able to confirm what to expect prior to closing.
The total amount sellers pay in closing costs can be negotiated with the buyer before an offer is accepted and during the inspection and appraisal processes. After including real estate commissions, sellers often pay 8–10% of the sale price.