The sale price of your home and your net proceeds from selling it are two completely different numbers. On a $300,000 traditional home sale, the net that actually reaches your bank account commonly lands between $240,000 and $270,000 after all costs are deducted at closing. Understanding what your walk-away number is before you commit to any selling path is the most important financial calculation in the transaction.
This guide explains what net proceeds are, every item that gets deducted, and how to calculate your number before you sign anything.
What Net Proceeds Are (and Are Not)
Net proceeds are what you keep. The sale price is what the buyer pays. Between those two numbers sits a stack of deductions that the title company subtracts at closing before distributing anything to you.
Net proceeds are not:
- The listing price (you may sell below it)
- The sale price (costs come out of this)
- Your profit (your profit subtracts your purchase price and improvements; net proceeds include your mortgage payoff coming out too)
Net proceeds is simply: what lands in your account after closing.
What Gets Deducted: The Full List
| Deduction | Who it goes to | Typical amount |
|---|---|---|
| Agent commission | Listing and buyer’s agent | 5-6% of sale price |
| Seller closing costs | Title company, county, attorneys | 1-3% of sale price |
| Mortgage payoff | Your lender | Outstanding loan balance |
| Prorated property taxes | Buyer (as a credit) | Your share through closing date |
| Repair credits / concessions | Buyer | Negotiated amount |
| HOA transfer fee | HOA | $100-$500 |
| Any liens or judgments | Creditors | Full lien balance |
| Wire transfer fee | Title company | $25-$75 |
The two largest deductions for most sellers are the mortgage payoff and the commission. The remaining items typically add up to 3 to 6 percent of the sale price on top of the commission.
How to Calculate Your Net Proceeds: Step by Step
Step 1: Start with the expected sale price.
Step 2: Subtract the total agent commission (your listing rate plus the buyer’s agent offer).
Step 3: Subtract seller closing costs: title insurance, transfer taxes, escrow fee, attorney fee if required in your state, recording fees, and prorated property taxes.
Step 4: Subtract your mortgage payoff balance. Call your lender for a payoff quote good through your expected closing date. This number is slightly higher than your current balance because interest accrues daily.
Step 5: Subtract any repair credits you expect to negotiate after inspection and any other concessions you anticipate offering.
Step 6: The result is your estimated net proceeds.
Round-number illustration for a $300,000 traditional sale:
| Item | Amount |
|---|---|
| Sale price | $300,000 |
| Agent commission (5.5%) | -$16,500 |
| Seller closing costs (2%) | -$6,000 |
| Repair credits (estimated) | -$5,000 |
| Mortgage payoff balance | -$175,000 |
| Prorated property taxes | -$1,200 |
| HOA transfer fee | -$250 |
| Estimated net proceeds | $96,050 |
These are illustrative round numbers. Your actual payoff, commission rate, and closing costs will differ.
The Net Proceeds Calculation in a Direct Cash Sale
A direct cash sale changes the deductions dramatically:
| Item | Amount |
|---|---|
| Cash offer price | $265,000 |
| Agent commission | $0 |
| Seller closing costs | $0 (buyer covers) |
| Repair credits | $0 (sold as-is) |
| Mortgage payoff balance | -$175,000 |
| Prorated property taxes | -$1,200 |
| HOA transfer fee | $0 (buyer covers) |
| Estimated net proceeds | $88,800 |
The cash sale nets $88,800 versus $96,050 in this illustration: a difference of $7,250. The gross price difference was $35,000. The deductions absorbed most of that gap. And this example does not account for carrying costs, pre-listing repairs, or staging costs in the traditional path, all of which would narrow the gap further.
For homes with significant repair needs or sellers on a deadline, running the numbers with realistic repair and carrying cost estimates often shows the cash path coming out ahead.
Tools for Getting to Your Exact Number
The fastest way to get your specific net proceeds estimate is to use our net proceeds calculator. Enter your expected sale price, commission rate, estimated repair costs, carrying cost timeline, and mortgage balance to see both paths side by side.
You can also request a written net sheet from any title company. Ask your agent or the cash buyer to provide one before you sign any agreement. A legitimate seller’s net sheet shows every line item and exactly what you walk away with. If anyone refuses to provide one, that is a reason to pause.
Green Flags and Red Flags on a Seller’s Net Sheet
Green flags: You receive a written net sheet before signing any listing agreement or purchase contract. Every line item is explained. The net sheet is updated when the sale price changes or new costs are discovered.
Red flags: No net sheet is provided until the day of closing. Line items appear at closing that were not disclosed earlier. The title company cannot explain a fee. The net at closing is materially different from what was estimated at the start of the transaction.
For a broader look at the full cost picture including hidden costs most sellers overlook, see our guide to the hidden costs of selling a house.
The Bottom Line
Net proceeds are the only number that actually matters when selling a house. The sale price, the list price, and the offer are all gross figures that require deductions before they tell you anything useful. On a standard traditional sale, deductions commonly total $25,000 to $50,000 on a $300,000 home. A direct cash sale with no commission and no closing costs reduces those deductions to primarily your mortgage payoff, which can make a meaningfully lower gross offer still competitive on a net basis.
Know your walk-away number before you commit. Request a no-obligation cash offer from Homewise, compare it to a realistic traditional net, and make the decision with full information.
