Start with a seller net estimate
A net estimate begins with an assumed sale price and subtracts the obligations likely to be paid at or before closing. It should be updated when the price, timing or contract terms change. A generic percentage is convenient, but it can hide the items that matter most to your move.
Common categories to consider
- Loan payoff: the lender’s payoff can differ from the balance shown on a monthly statement because of interest and fees.
- Broker compensation: compensation and the services provided should be discussed and negotiated. Do not assume one universal rate.
- Closing and legal charges: the closing professional can explain transaction-specific fees and disbursements.
- Taxes, assessments and HOA items: prorations, transfer charges, unpaid balances and community requirements vary.
- Repairs, preparation and moving: some costs occur before closing and will not appear on the settlement statement.
- Buyer concessions: a contract may include seller-paid credits or other negotiated expenses.
Do not confuse proceeds with taxable gain
Cash received at closing and taxable gain are different calculations. Purchase basis, qualifying improvements, selling expenses, exclusions and individual circumstances can matter. A real estate professional can discuss the transaction, but tax questions belong with a qualified tax adviser.
Compare offers by net and risk
The highest headline price is not automatically the strongest result. Financing, appraisal exposure, inspection terms, concessions, closing date and sale contingencies can change both expected proceeds and certainty. Review the whole offer against your priorities.
Questions for an accurate estimate
- What is the expected loan payoff at the target closing date?
- Are there HOA resale packages, transfer charges or outstanding assessments?
- Will the seller complete work before listing or negotiate after inspection?
- Does the move require temporary housing, storage or a rent-back?
- Which contract expenses are fixed, estimated or negotiable?
Put the estimate in context.
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