Home Sale Net Proceeds: What Will You Actually Take Away?

A strong sale price is only one part of your moving budget. Before deciding what you can spend on your next home, estimate the cash remaining after debts, transaction expenses, and agreed adjustments. Then decide how much of that cash you should keep available for taxes, moving, and unexpected costs.

A seller net sheet makes those assumptions visible. It is a planning document, not a promise of what your closing statement will show.

Do not copy the principal balance from your latest mortgage statement and treat it as the final payoff. A payoff can include interest through the intended payment date, unpaid fees, and any applicable prepayment charge. Request a written quote from your lender or servicer for the expected payoff date. CFPB: Understanding mortgage payoff amounts.

List every debt that may need attention, including a second mortgage or home equity line. Ask your attorney and closing team which obligations must be resolved, who will request each payoff, and when figures need updating. An old balance or an omitted loan can materially distort the amount available for your next purchase.

Use the proposed sale price as the starting point. Underneath it, create separate entries for:

• Mortgage and other required debt payoffs
• Brokerage compensation and other charges in your signed agreements
• Applicable state and city transfer taxes
• Attorney and other transaction expenses
• Buyer credits or other negotiated concessions
• Property-specific charges and closing adjustments

Beside each figure, record whether it is confirmed, estimated, or still unknown. Add the person responsible for verifying it. This is more useful than applying one broad “closing cost percentage” to every property.

For a NYC sale, have the closing team check city and state transfer taxes separately. NYC rates depend on the transfer category and value; its residential categories do not include every building used as housing. New York State also distinguishes seller-side base taxes from taxes generally paid by buyers, with exceptions and contractual considerations. Do not automatically assign every tax to the seller or assume a four-family building follows the same treatment as a one-family house. NYC Department of Finance: RPTT; New York State: Real estate transfer tax.

The following is a fictional resale of one individual Queens condo for $900,000, with no exemption or special transfer structure. The seller bears the ordinary transfer taxes in this example.

Swipe sideways to see every column.

The brokerage figure is an invented, negotiated amount—not a standard or required commission. Actual charges and allocations depend on the agreement. This simplified table excludes additional adjustments, holding costs and any applicable income taxes or withholding.

New York State and NYC transfer taxes are separate. NYC’s 1.425% example applies here because the consideration for an individual residential condo exceeds $500,000. Do not apply this classification to every multi-unit or commercial property. Ask your attorney to check the tax treatment, including higher-price rules where applicable.

Compare the result at a lower price or with a larger concession. Use a payoff valid for the expected closing date, not only the balance on a monthly statement.

Your tax result cannot be determined simply by subtracting your mortgage from the sale price. Federal home-sale gain exclusions have eligibility requirements and limits; receiving cash at closing does not establish whether that cash represents taxable gain. Ask a tax professional to review your purchase records, improvements, ownership and occupancy history, and any rental use. IRS: Sale of your home.

Ask for three versions of the net sheet: your target price, a lower-price scenario, and a scenario with additional concessions or a longer holding period. Use the same expense categories in each. Revisit the estimate when material terms change, rather than relying on the first number you saw.

For the next decision, read Comparing Home Offers and Buy First or Sell First?.

Start by asking your closing team how the existing loan will be paid and released in your transaction. If expected proceeds will not cover required obligations, raise the shortfall with your lender and attorney before making commitments elsewhere.

Contact B Square Realty to discuss your selling plans and the inputs for an estimated net-proceeds worksheet. Your closing team should verify the final charges and disbursement figures.