Why the sale price isn't the payday
Sellers fixate on the sale price, but the number that lands in your bank account is net proceeds — what's left after paying off the mortgage and covering the surprisingly large costs of selling. The gap between "sold for $450,000" and "walked away with $161,000" catches many sellers off guard. This calculator makes it concrete.
The costs of selling a home
- Agent commission — usually the biggest cost, often 5–6% of the sale price split between the buyer's and seller's agents. On a $450,000 home that's $22,500–$27,000.
- Closing costs — transfer taxes, title fees, attorney or escrow fees, and sometimes prorated property taxes; roughly 1–3% for the seller.
- Repairs, staging, and concessions — pre-sale fixes, staging, and credits you give the buyer after inspection.
- Mortgage payoff — not a "cost," but it comes straight out of the proceeds. Use your current balance, which may include a small amount of prorated interest.
A worked example
Sell for $450,000 with $260,000 left on the mortgage, 5% commission ($22,500), 1.5% closing costs ($6,750), and $5,000 of repairs. Net proceeds are about $155,750 — the sale "cost" roughly $34,250, or 7.6% of the price, before even counting the mortgage. Knowing this number is essential for planning your next purchase or move.
How to use the result
- Plan your next down payment. Your net proceeds are what you can roll into the next home — feed the figure into our down payment calculator.
- Check you're not underwater. If payoff plus costs exceeds the sale price, you'd need to bring cash to closing. Selling early in a mortgage (when the balance is still high) makes this more likely.
- Negotiate commission. Commission is often negotiable, and even half a percent is real money on a large sale.
This is an estimate — exact figures depend on your local taxes, contract, and final settlement statement — but it turns "how much will I actually get?" from a guess into a number you can plan around.