Short Answer
Your net proceeds are the amount you receive after paying off your mortgage, closing costs, real estate commissions, and any seller concessions. To calculate, start with the sale price, subtract the remaining mortgage balance, subtract the real estate commission (typically 5% to 6%), subtract closing costs (typically 1% to 3% for sellers), and subtract any seller concessions. Your agent can provide a detailed net proceeds statement before you list.
Understanding your net proceeds is essential before you decide to sell. The calculation starts with the sale price. From that, subtract the remaining mortgage balance, including any prepayment penalties. Subtract the real estate commission, which is typically 5% to 6% of the sale price, split between the listing and buyer's agent. Subtract seller closing costs, which include the New Jersey transfer tax (about $4.50 per $1,000 of the sale price), attorney fees, title insurance, recording fees, and any seller credits or concessions. Subtract any prorated property taxes and HOA fees you owe up to the closing date. The remaining amount is your net proceeds. Your agent can provide a detailed net proceeds statement that estimates every cost. This statement helps you make informed decisions about pricing, concessions, and repairs. It also helps you plan for your next move, whether you are buying another home, relocating, or investing the proceeds. The estimated net proceeds will change based on the actual sale price and terms of the offer you accept.
Bob's Advice
Redfin Senior Agent · AI Certified Agent
I provide every seller with a detailed net proceeds statement before they decide to list. There are no surprises. You will know exactly what to expect at every price point. If you are thinking about selling, let me prepare a net proceeds analysis for you. It is free, and it will give you the clarity you need to make an informed decision about your next move.
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