What this measures
Net proceeds are the sale price minus the costs of sale and the loan payoffs. Costs of sale include the listing brokerage commission, any buyer agent compensation the seller agrees to pay, title and escrow or settlement fees, transfer tax or deed stamps where they apply, concessions and repair credits to the buyer, the property tax proration, HOA and attorney fees, and a home warranty if one is offered.
Some costs scale with the price (commissions and percentage transfer taxes) and some are flat. The calculator keeps them apart so it can work backward: given the net the seller wants, it solves for the price that gets there with the same terms.
The price-move table shows the net at 5% under and 5% over the price, which turns a pricing conversation into dollars the seller can see.
Formula
Percent costs = sale price × (listing commission % + buyer agent compensation % + transfer tax %). Flat costs = title and escrow + concessions + repair credits + tax proration + HOA and other + home warranty.
Total costs of sale = percent costs + flat costs. Net to seller = sale price − total costs − mortgage payoff − second loan payoff.
Price to hit a target net = (target net + flat costs + payoffs) ÷ (1 − the percent cost rate).
Example
Example
The sample sale: $565,000 with a $238,000 mortgage payoff. Commissions of 2.5% and 2.5% come to $28,250, title and settlement fees are $2,900, a 0.01% documentary fee, the Colorado state rate, is $56.50, and $5,000 of concessions, $2,500 of repair credits, a $3,100 tax proration, $650 of HOA and other fees, and a $550 home warranty bring total costs of sale to $43,006.50, or 7.6% of the price. The seller nets $283,993.50, about 50.3% of the price. To net $275,000 on the same terms, the price would need to be about $555,532. Net to seller is $283,994. Total costs of sale is $43,007. Price to net target is $555,532.
Illustrative example. Every input is a sample so the math is visible, not a market average, a standard commission, or a real sale. Commissions are negotiable. At 5% under the price, the same seller nets $257,158.83, and at 5% over, $310,828.18, so each 5% price move is worth about $26,800 to the seller here.
Example
Second example
Illustrative example. A $410,000 sale with a $150,000 payoff, a 3% listing commission, 2% buyer agent compensation, $2,200 of title fees, no transfer tax, and a $1,800 tax proration has $24,500 of costs, 6.0% of the price. The seller nets $235,500. To net $230,000 instead, the price could be about $404,211. These figures are made up and are not the sample in the form above.
When this ratio misleads
A net sheet is only as good as the payoff number. A mortgage balance from a monthly statement leaves out the interest that builds up until the payoff date and any fees, so the lender's payoff letter can be higher. Tax prorations, HOA transfer fees, and local transfer taxes vary by county and by contract, and the final settlement statement from the title or escrow company is the real number.
Common pitfalls
Using the principal balance from a statement as the payoff. Ask for a payoff letter dated near closing, which includes accrued interest and fees.
Forgetting a HELOC or a second lien the seller has not used in years. An open line still has to be paid and closed at closing.
Treating commissions as fixed. They are set by agreement with the seller, so enter the terms actually signed or offered.
Leaving out credits the buyer will ask for after inspection. A line for repair credits keeps the first net sheet from being the best case.
Questions
What is a seller net sheet?
It is an estimate of what a seller receives at closing: the sale price minus the costs of selling and every loan payoff. Agents and title companies use it before listing and when comparing offers.
How do you calculate seller net proceeds?
Start with the sale price, subtract commissions, title and escrow fees, transfer taxes, concessions, credits, prorations, and other fees, then subtract the mortgage and any second loan payoff. What is left is the net.
Does the seller pay the buyer agent?
Only if the seller agrees to. Buyer agent compensation is negotiable and can be paid by the seller, the buyer, or split. Enter 0 if the seller is not paying it.
What price does the seller need to net a certain amount?
Enter the target net. The calculator adds the flat costs and payoffs to it and divides by one minus the percentage costs, which gives the price that reaches the target on the same terms.
Is this the final settlement statement?
No. The title or escrow company prepares the settlement statement, and the lender's payoff letter sets the payoff. This page is an estimate from the numbers you type and is not legal, tax, or financial advice.