Home Estimate

Net proceeds are the money received following the sale of a home after all costs and expenses are paid for out of the gross proceeds. Expenses and service provided can vary from company to company. To maximize your net proceeds, it is important to find a realtor offering a high level of service at a low cost.

CapCenter connects you with an area professional that will work with you to develop a personalized go-to-market plan. Your agent will then take care of listing and marketing your home to ensure you sell it quickly and at the right price. These are things you should expect from any realtor. The difference is that with CapCenter, you get all of this for a fraction of the industry-standard listing fees!

The determined value of your home may not exactly equal the sale price – there are other factors that could affect a buyer’s offer, including the home’s location, the school district, and how “hot” the market is. The home’s value, however, is still a good baseline of what it should sell for at a minimum. Since net proceeds are a calculation of the sale price of your home, minus any costs related to selling it, your home’s value can give you a good idea of what your final net proceeds will be.

The 2-step guide for calculating your net proceeds:

1. Begin by adding up the costs of selling your home. On a home property sale, the primary costs are any liens on the home, real estate commissions, taxes and fees, and the remaining balance on the mortgage.
2. Then, you subtract the total amount of the costs from the total sale price of your home. The positive difference between these numbers are your net proceeds.

Net proceeds from the sale of any asset, including a home, are subject to a capital gains tax. There is a federal capital gains tax based on income and how long you have owned the home (more or less than a year). Depending on where you’re selling, there may also be a state-level capital gains tax – sometimes assessed as an income tax. It is a good idea to look up your local tax regulations to understand exactly how your net proceeds may be taxed.

CapCenter provides 1040 forms to anyone who sells a home with us.

When people sell their primary residence, it is common that net proceeds go toward the down payment on another house. However, if the house sold is a second home or investment property, this is not always the case. Ultimately, there is no definitive answer here. Once the home is sold and the services are paid for, the net proceeds are yours to do whatever you want.