Example: a home sale with a mortgage
| Sale calculation | Illustrative amount |
|---|---|
| Expected sale price | $350,000 |
| Mortgage and other payoffs | − $224,000 |
| Combined selling allowance: 6% | − $21,000 |
| Separate repairs and seller credits | − $5,000 |
| Estimated net proceeds | $100,000 |
The combined allowance might cover negotiated brokerage compensation, closing charges, and applicable prorations. It is not a standard commission or local quote. Repairs and seller credits are separate here to prevent counting them twice.
Mortgage balance and payoff are different inputs
A mortgage account balance may not be the amount needed to satisfy the loan on the closing date. Ask for a dated payoff quote and include any other liens that must be paid. A change in closing date can change the figure. See how to build a proceeds estimate.
What if the buyer asks for a credit?
With every other term unchanged, a $3,000 seller credit reduces estimated proceeds by $3,000. Compare the full offer, including price, credits, repairs, and your costs if closing is delayed. Contract terms and allowable credits require local and lender review.
What this estimate excludes
This tool does not calculate capital gains taxes, special local tax rules, overlapping ownership costs, or a property valuation. If you already include repairs or credits in your selling allowance, remove them from that allowance before entering them separately.
What can those proceeds fund on your next home?
Compare them against the next down payment, purchase costs, moving, and retained reserves in the sell a house and buy another calculator. Funds must actually be available before they can support a dependent purchase.