Home Sale Proceeds Calculator

Home Sale Proceeds Calculator

function calculateProceeds() { var salePrice = parseFloat(document.getElementById('salePrice').value); var mortgageBalance = parseFloat(document.getElementById('mortgageBalance').value); var commissionRate = parseFloat(document.getElementById('commissionRate').value); var sellerClosingCosts = parseFloat(document.getElementById('sellerClosingCosts').value); var repairStagingCosts = parseFloat(document.getElementById('repairStagingCosts').value); var propertyTaxesDue = parseFloat(document.getElementById('propertyTaxesDue').value); var hoaFeesDue = parseFloat(document.getElementById('hoaFeesDue').value); // Validate inputs if (isNaN(salePrice) || salePrice < 0) { alert('Please enter a valid Sale Price.'); return; } if (isNaN(mortgageBalance) || mortgageBalance < 0) { alert('Please enter a valid Outstanding Mortgage Balance.'); return; } if (isNaN(commissionRate) || commissionRate < 0) { alert('Please enter a valid Real Estate Agent Commission Rate.'); return; } if (isNaN(sellerClosingCosts) || sellerClosingCosts < 0) { alert('Please enter valid Seller\'s Closing Costs.'); return; } if (isNaN(repairStagingCosts) || repairStagingCosts < 0) { alert('Please enter valid Repair & Staging Costs.'); return; } if (isNaN(propertyTaxesDue) || propertyTaxesDue < 0) { alert('Please enter valid Prorated Property Taxes Due.'); return; } if (isNaN(hoaFeesDue) || hoaFeesDue < 0) { alert('Please enter valid Prorated HOA Fees Due.'); return; } // Calculations var agentCommissionAmount = salePrice * (commissionRate / 100); var totalSellerCosts = agentCommissionAmount + sellerClosingCosts + repairStagingCosts + propertyTaxesDue + hoaFeesDue; var netProceedsBeforeMortgage = salePrice – totalSellerCosts; var finalNetProceeds = netProceedsBeforeMortgage – mortgageBalance; // Display results document.getElementById('grossProceedsResult').innerText = '$' + salePrice.toLocaleString('en-US', { minimumFractionDigits: 2, maximumFractionDigits: 2 }); document.getElementById('totalCostsResult').innerText = '$' + totalSellerCosts.toLocaleString('en-US', { minimumFractionDigits: 2, maximumFractionDigits: 2 }); document.getElementById('netProceedsResult').innerText = '$' + finalNetProceeds.toLocaleString('en-US', { minimumFractionDigits: 2, maximumFractionDigits: 2 }); } // Run calculation on page load with default values window.onload = calculateProceeds;

Understanding Your Home Sale Proceeds

Selling a home involves more than just agreeing on a sale price. To truly understand how much money you'll walk away with, it's crucial to calculate your "home sale proceeds." This figure represents the net amount of cash you receive after all expenses related to the sale, and your outstanding mortgage, have been paid off.

What Factors Affect Your Proceeds?

Several key components contribute to the final proceeds from your home sale:

1. Sale Price of Home: This is the agreed-upon price for which your home is sold. It's the starting point for all calculations.
2. Outstanding Mortgage Balance: The remaining amount you owe on your mortgage loan. This will be paid directly from the sale proceeds at closing.
3. Real Estate Agent Commission Rate: Typically, the seller pays the commission for both their agent and the buyer's agent. This is usually a percentage of the sale price (e.g., 5-6%).
4. Seller's Closing Costs: These are various fees and charges associated with transferring ownership of the property. They can include title insurance, escrow fees, attorney fees, transfer taxes, recording fees, and sometimes a portion of property taxes or HOA dues.
5. Repair & Staging Costs: Any money you spent to prepare your home for sale, such as repairs, painting, landscaping, or professional staging, directly reduces your net proceeds.
6. Prorated Property Taxes Due: Property taxes are often paid in arrears or advance. At closing, taxes are prorated, meaning you might owe the buyer for the days you owned the home in the current tax period, or vice-versa. This calculator assumes you owe.
7. Prorated HOA Fees Due: Similar to property taxes, if your home is part of a Homeowners Association, any outstanding or prorated HOA fees for the period you owned the home will be deducted.

How the Calculation Works

The process to determine your net proceeds is straightforward:

1. Start with the Sale Price of your home. This is your gross proceeds.
2. Calculate the Real Estate Agent Commission by multiplying the sale price by the commission rate.
3. Add up all other Seller's Costs: agent commission, closing costs, repair/staging costs, prorated property taxes, and prorated HOA fees.
4. Subtract the Total Seller Costs from the Sale Price. This gives you your proceeds before paying off the mortgage.
5. Finally, subtract your Outstanding Mortgage Balance from the result. The remaining amount is your estimated net home sale proceeds.

Example Scenario:

Let's say you sell your home for $500,000. You still owe $200,000 on your mortgage. Your real estate agent charges a 5% commission. Your seller's closing costs are estimated at $7,500, and you spent $3,000 on repairs and staging. Additionally, you owe $1,200 in prorated property taxes and $300 in prorated HOA fees.

• Sale Price: $500,000
• Agent Commission (5% of $500,000): $25,000
• Seller's Closing Costs: $7,500
• Repair & Staging Costs: $3,000
• Prorated Property Taxes Due: $1,200
• Prorated HOA Fees Due: $300
• Outstanding Mortgage Balance: $200,000

Total Seller Costs: $25,000 + $7,500 + $3,000 + $1,200 + $300 = $37,000

Net Proceeds Before Mortgage: $500,000 – $37,000 = $463,000

Final Net Proceeds: $463,000 – $200,000 = $263,000

Using this calculator can help you get a clear picture of the financial outcome of your home sale, allowing for better financial planning.