Your sale price is not your payday. The number that matters is what you net after every cost is paid — and for most sellers, that gap is larger than expected. Understanding your seller net proceeds will help clarify what you actually walk away with. Knowing your seller net proceeds is crucial to making informed decisions about your sale.
Here’s how to calculate it, line by line.
The Big Picture: Sale Price Is Not Your Number
Understanding Seller Net Proceeds: The Key to Your Sale
Sellers in New Hampshire and Massachusetts typically pay 6–9% of the sale price in total selling costs before they see a dollar. On a $600,000 home, that’s $36,000–$54,000 coming off the top before mortgage payoff.
When calculating seller net proceeds, it’s essential to include all potential costs, so you have a clear picture of your financial outcome.
The formula: Net = Sale Price – Mortgage Payoff – Commissions – Closing Costs – Concessions
Every Cost You Need to Account For
- Mortgage payoff: Your remaining loan balance, plus any prepayment penalties. Check your most recent statement for an accurate figure.
- Real estate commission: Negotiable, but typically 2.5–3% for the listing agent. Buyer’s agent compensation is now handled separately following the August 2024 NAR rule changes.
- Transfer taxes: Massachusetts charges a deed excise tax of $4.56 per $1,000 of sale price. New Hampshire has no transfer tax for sellers.
- Attorney fees: Massachusetts requires an attorney at closing — budget $1,000–$2,000.
- Title insurance: Typically a seller cost in MA; varies in NH.
- Prorations: Property taxes, HOA dues, and utility balances settled at closing.
- Pre-sale prep costs: Repairs, staging, cleaning — often overlooked in the net calculation.
Understanding seller net proceeds is vital for every homeowner looking to sell their property. Accurate calculations can prevent unexpected surprises.
The Line Item Sellers Forget: Capital Gains Tax
Most primary residence sellers owe zero federal capital gains tax, thanks to the IRS Section 121 exclusion — up to $250,000 in gains for single filers and $500,000 for married couples filing jointly. You must have owned and lived in the home as your primary residence for at least two of the last five years.
If your gain exceeds the exclusion, or if you’ve used the home as a rental, the calculation gets more complex. Talk to a CPA for your specific situation.
Don’t underestimate the importance of knowing your seller net proceeds before you close the deal.
How Post-NAR Settlement Commission Rules Affect Your Bottom Line
The August 2024 NAR settlement fundamentally changed how buyer’s agent compensation is handled, and it has real implications for your net proceeds calculation.
Before the settlement, seller listing agreements typically included an offer of compensation to buyer’s agents, and that offer was displayed on the MLS. That’s no longer allowed. Compensation to buyer’s agents can still be offered, but it must be negotiated directly in the purchase contract rather than advertised upfront.
Calculating your seller net proceeds effectively can help you strategize on pricing and concessions.
Make sure to consult with a realtor to accurately assess your seller net proceeds and understand your tax implications.
What this means in practice: most sellers in competitive markets still offer buyer’s agent compensation (typically 2–2.5%) because it attracts a larger pool of qualified buyers. But the negotiation now happens at the offer stage rather than at listing. Your listing agent’s commission (typically 2.5–3%) is still negotiated in your listing agreement as before.
By having a clear understanding of your seller net proceeds, you can better navigate the selling process and make informed decisions.
The takeaway: you still need to budget for both sides of the commission in most cases — the mechanics changed, but the market reality has not shifted dramatically. Run your net proceeds estimate with realistic commission assumptions, and expect to negotiate buyer’s agent compensation as part of your offer review.
Seller net proceeds are a critical component to consider when preparing for closing to ensure you maximize your profit.
Run Three Scenarios Before You Decide Anything
Understanding your seller net proceeds can also help you evaluate offers when selling your home.
A clean sale with no concessions gives you your baseline. From there, model what changes if you offer a buyer closing cost credit or take a repair credit after inspection. Every dollar in concessions comes directly off your net — there’s no free way to give a buyer money.
Know Your Number Before You List
Don’t go into negotiations without knowing what you need to walk away with. The proceeds calculator on my site runs the NH and MA math for you.
A thorough analysis of seller net proceeds will empower you to negotiate better terms.
Ready to take the next step?
