Net Proceeds

Your home’s selling price is not the same as the amount you walk away with. Your net proceeds—the amount of money you actually get from the sale—are largely determined by the closing costs, which often don’t show up until the closing date itself.
So how much can you really get from selling your home? There’s no single formula that applies to all Newport Beach homes. If you want to know what your net proceeds are, Newport Beach real estate agent can give you an estimate so you’ll know what to expect at the closing table.

The main factors affecting your net proceeds are:

• Real estate commission (usually around 6% of the price)
• Agent fees, such as conveyancing and junk fees
• Closing costs, including attorney fees, deed preparation, city utilities, and past-due taxes if applicable
• Repair credits or seller assistance, if applicable
• Any unpaid judgments on the title report, plus interest
• Mortgage payoffs
• Newport Beach CA transfer tax (usually around 1-2%)
• Prorated utility fees and taxes for the period you won’t be occupying the home

For a $300,000 home, a typical transaction would go down as follows:

• $110,000 – mortgage payoffs
• $18,000 – real estate commission
• $10,000 – seller assist
• $1,500 – transfer tax (half of 2%, split between you and your buyer)
• $150 – miscellaneous and legal fees
• $80 – utility fees

+ $2,800 – prorated tax, assuming a Newport Beach CA annual tax bill of $5,600 and 6 months of non-occupancy

= $163,070 – Net Proceeds to seller