Calculate Net Check Amount from Selling Real Estate.

Calculate Net Check Amount from Selling Real Estate.

Fine tune the Estimate or Preliminary HUD-1 real estate agent gives you.

How much can you expect when you sell your home?

At closing, the seller, will be presented with a universally required 2 page HUD-1 statement. There are 2 columns on it, the “buyer’s side” (left) and the “seller’s side” (right) .

Page one is an itemization of each fee.

Page two lists the final tally and net proceeds to the seller in the bottom right hand corner.

Before closing, you may want to determine the expected net proceeds. It takes time and information, both of which the seller likely has, to determine their proceeds.

The formula to determine how much money the seller will receive at closing is:

Sales Price
less Real Estate Commission (typically the sales price x 0.06)
less Real Estate Agent Fees (junk fees, conveyancing, etc)
less Closing costs:

  • Past due taxes, utilities (if applicable)
  • Pro-rated government provided utilities (city water, sewer, and trash if applicable) from the last date of the billing period until closing day
  • Lawyer Fees (if applicable)
  • $150 in misc. closing fees (deed preparation, tax cert., notary, shipping for payoff check, etc)

Less seller assist or repair credit the seller agreed to
Less down payment IF the seller is holding it (instead of the title company or agent holding as is typical, except in FSBO)
Less Outstanding judgments, with interest, that are the title report (for example if you lost a court case and did not pay it)
Less Past Due Child Support
Less all mortgage payoffs (Includes any loans that are secured by the home, HELOCS, mortgages, etc) This will be greater then the principal balance. The lenders will provide this figure when requested.
Less Transfer Tax.  1% in Pennsylvania except  1.5% in Philadelphia.

PLUS  Pro Rated Taxes and Utilities that you have pre-paid (you will get the money back for the period you will not own the home)

= Net Equity/Net Proceeds to you in the form of a bank check at closing


  • $200,000 sales price
  • Closing Date June 30
  • PA 1% transfer tax to each buyer and seller as is customary
  • No past due taxes, utilities, child support, outstanding judgments
  • Payoff (not principal balance) on all mortgages are $100,000
  • Single annual tax bill of $3,000 covers Jan. 1 to Dec. 31

$ 200,000
-$ 12,000 real estate commission
-$  5,000 seller assist you agreed to give to buyer for their closing costs*
-$  2,000 transfer tax (1%)
-$ 90,000 payoffs
-$     100 sewer bill prorated from last billing period end date to closing date
-$     150 misc. fees

+$ 1,500 Pro Rated taxes owed to you by buyer ($3,000/360 = $8.33 per day x 180 days you won’t live there)

$92,250 Net Estimated Proceeds (margin of error is + or – $200)


About Seller Assists

* With a seller assist, the seller pays the real estate commission on the gross sales price. The net sales price is truly $195,000 but the real estate agent is making 6% on $200,000, which is 6.2% of the net sales price. Some sellers, and it’s completely fair to the agent, ask their agent to charge 6% of the net (true) sales price. In this case the agent made an extra $300 above their 6% commission (6% of the $5,000 credit.  For larger seller assists that extra commission figure can be much larger).

A seller concession is a very common, “play money” which never changes hands. It reduces the sales price in a creative way to help the buyer purchase the house with less money out-of-pocket.

Many home buyers are cash strapped but credit worthy in every other way, and this helps them buy a home without having to save more money.

The transfer tax is also based on the gross sales price, but that is only 1% of the $5,000, or $50, extra that the seller pays by structuring this sale with the seller assist.

2 thoughts on “Calculate Net Check Amount from Selling Real Estate.

  1. Hi,
    I believe the $15.55 per day should be $8.33 per day.

    +$ 1,500 Pro Rated taxes owed to you by buyer ($3,000/360 = $15.55 per day x 180 days you won’t live there)

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