Before you list your home, you need to know the real number — not the sale price, but what actually lands in your bank account. Most sellers are surprised.
⚡ Quick Answer Summary
- Net proceeds = Sale price minus mortgage, commission, closing costs, credits, and liens
- Commission runs 4–6% of sale price — a significant cost to factor in before listing
- Always get your mortgage payoff quote before calculating expected proceeds
- Primary residence exclusion: $250K single / $500K married shields most sellers from capital gains
The Problem
Sellers focus obsessively on list price and miss the more important number: net proceeds. A home selling for $650,000 might net $180,000 or $380,000 depending on your mortgage, costs, and credits. The difference determines your next move — and most sellers don’t calculate it until they’re already in escrow.
The Clear Answer
Your net proceeds = Sale Price minus Mortgage Payoff, Agent Commission, Closing Costs, Repair Credits, and outstanding Liens. Here’s the complete formula — and how to run it before you ever sign a listing agreement.
Step-by-Step Breakdown
- Expected sale price: Get a CMA from your agent based on actual sold comps — not Zillow
- Mortgage payoff: Call your lender for a payoff quote (valid 30 days). Include per-diem interest
- Agent commission: Typically 4–6% of sale price. On $600K = $24,000–$36,000
- Seller closing costs: Title insurance (0.5–1%), escrow fees ($1,500–$3,000), county transfer tax (~$1.10/$1,000), prorated property taxes
- Repair credits or concessions: Any buyer credits for repairs or closing costs reduce your net directly
- Outstanding liens: HOA, mechanic’s, or tax liens — identified during title search and paid from proceeds
- Capital gains tax: If profit exceeds $250K single / $500K married (primary residence exclusion), consult a CPA about any taxable overage
Real-World Example
Seller Net Sheet — Tracy Example:
Sale Price: $620,000 — Mortgage Payoff: -$295,000 — Agent Commission (5%): -$31,000 — Title + Escrow: -$5,500 — Transfer Tax: -$682 — Prorated Taxes: -$2,800 — Repair Credit: -$4,500 = Estimated Net Proceeds: ~$280,518
This is the number you plan your next purchase around. Not $620,000.
Frequently Asked Questions
❓ How do I calculate my home sale profit?
Sale price minus mortgage payoff, commission (4–6%), title and escrow (~1–2%), transfer taxes, prorated property taxes, and any repair credits. Your agent should provide a detailed net sheet before listing.
❓ What is a seller’s net sheet?
A document your agent prepares showing estimated proceeds at various price points. It accounts for all costs and mortgage payoff so you know what you’ll actually receive at closing — no surprises.
❓ Do I pay taxes on the profit from selling my house?
If you’ve lived in the home as primary residence for 2 of the last 5 years: first $250K ($500K married) of profit is excluded from federal capital gains tax. California taxes any remaining gain as ordinary income.
🏠 Work With Manoj Panthi — Engineer by Mind, Realtor by Heart!
Serving Tracy, San Jose, and the Bay Area / Central Valley with expertise across:
- 🏡 Buy or Sell a Home in Tracy, San Jose, or surrounding areas
- 📈 Invest in Real Estate — rentals, multi-family, 1031 exchanges
- 🛡️ Home, Auto, Landlord & Commercial Insurance — licensed P&C agent
- 🚀 Launch Your Real Estate Career — mentorship & onboarding at eXp Realty
📬 Contact Manoj at manojpanthi.com/ →
eXp Realty | CA DRE# 02250652 | #rocket2realestate
Disclaimer: All content is for educational purposes only and does not constitute legal, financial, tax, or insurance advice. Real estate services by Manoj Panthi, REALTOR® (CA DRE# 02250652), eXp Realty. Licensed P&C Insurance Agent. Always consult qualified professionals before making real estate or financial decisions.