MRED SEC Calculator (Seller Estimated Charges)
Calculate Net Proceeds for Midwest Real Estate Data (MRED) Transactions
What is the MRED SEC Calculator?
In the Midwest Real Estate Data (MRED) marketplace, the SEC (Seller Estimated Charges) is a critical document provided by real estate professionals to homeowners. It outlines the anticipated financial outcome of a property sale. This calculator replicates the standard math used in the Chicagoland and Midwest regions to determine how much cash a seller will walk away with after all liens, commissions, and local taxes are settled.
Understanding MRED Closing Costs
Selling a home involves more than just transferring the title. In MRED-covered areas (like Illinois), several specific costs apply:
- Brokerage Commissions: Usually the largest expense, typically split between the listing and buyer's agents.
- State/County Transfer Taxes: In Illinois, the combined state and county rate is typically $1.50 per $1,000 of the sale price (though this can vary by specific county).
- Municipal Transfer Stamps: Many cities (like Chicago or Evanston) have their own local transfer taxes that the seller or buyer must pay.
- Title Insurance: Sellers typically pay for the owner's title insurance policy to guarantee a clear title to the buyer.
- Property Tax Prorations: Since property taxes are paid in arrears in Illinois, sellers must credit the buyer for taxes earned but not yet billed.
Example Calculation
If you sell a home in a suburb for $300,000 with a 5% commission ($15,000), a mortgage payoff of $150,000, and standard transfer taxes ($450), your calculation would look like this:
Gross Sale Price: $300,000
Minus Commission: -$15,000
Minus Mortgage: -$150,000
Minus Closing/Transfer Fees: -$3,500
Estimated Net: $131,500
Why Accuracy Matters
Using an MRED SEC calculator helps sellers set realistic expectations for their next home purchase. Underestimating closing credits or overestimating net proceeds can lead to financing gaps during the subsequent purchase. Real estate agents use these figures to help clients evaluate multiple offers, as a higher purchase price with high seller concessions might actually net less than a lower "clean" offer.