Net Proceeds
Net proceeds is the amount remaining to you, seller, after paying off the mortgage and expenses of the sale. Typically it is the main concern of what amount of money you take away at the end of a real estate transaction. It is important to understand what expenses may be involved.
Here are some examples of the expenses.
- Title Insurance – typically paid by the seller in Summit County.
- Title Closing Fees – Typically split between seller and buyer in Summit County.
- Owners Extended Coverage – Typically a buyer will request for the seller to pay this in Summit County. The cost is $65.
- Homeowner’s warranty – If applicable, often the buyer will request this from the seller. This is to assure the buyer that the home is in good condition and will be warranted against many defects by an independent home warranty. The benefit is that most companies will cover the seller for any problems that may occur during the listing period if the sellers agree to pay for the buyer’s policy.
- Buyer’s closing costs, origination fees, and discount points – It can ad substantial cost if the seller agrees to pay that. This is not very common in Summit County, however, it happens more often in Park County with first home buyer’s purchases.
- Repairs and replacements – Often result of inspections issues.
- Attorney’s fees – If non-standard contacts are used. Often used in new home construction sales.
- Real estate commission fees
- Administrative fees – Often split between buyer and seller.
- Other miscellaneous costs – E.g. if the seller is not closing at the location the mail out fees will apply.
- Private Transfer Tax (To HOA) – Negotiable.
- Summit County Transfer Tax – Negotiable. (What is transfer tax?)
- Any outstanding utility liens, tax liens, county liens, and/or seller judgments
- Prorated
- Property taxes
- Interest
- Homeowner’s association dues
- Rents and deposits – if the rents and deposits have been collected in advance, the buyer is entitled to those after the closing date.
Sample Seller’s Net Proceeds Sheet
Sellers Sample Settlement Sheet
Sellers Net Proceeds Calculator
You can use this calculator to estimate your net proceeds.
