A USEFUL STARTING POINT
What to keep in mind
- Net proceeds are the sale price less the costs and amounts that must be paid from the transaction.
- A direct sale can avoid a listing commission when no agent is involved, but other expenses may still exist.
- Compare written itemized estimates, including the cost of holding the house while you wait.
Separate transaction costs from your debt
A mortgage payoff is not a selling fee, but it still affects the cash left after closing. Ask for a payoff good through the expected closing date rather than using an online principal balance. List any other liens or amounts your attorney says must be resolved. Keep those amounts separate from the costs of the sale so you can compare offers fairly.
Identify transaction costs
Depending on the agreement and sale, costs may include attorney services, recording or transfer charges, commissions, tax adjustments, and buyer credits. Ask the closing professional for an itemized estimate.
Count preparation and time
Repairs, cleaning, staging, moving, insurance, utilities, and ongoing loan payments can affect the decision. Avoid treating hoped-for price increases from renovations as guaranteed returns.
Ask specifically about transfer charges and commissions
Massachusetts imposes a deeds excise on certain real estate transfers. Ask the closing professional for the current amount and how the agreement allocates it. If you are working with an agent, get the negotiated commission terms in writing rather than assuming a standard rate.
Reference: Massachusetts Department of Revenue: deeds excise · Real estate brokers and salespersons: consumer fact sheet
Use one worksheet for every route
Start with the expected price. Subtract the applicable payoffs, estimated transaction charges, negotiated credits, and any preparation spending. Then show the extra ownership costs until the expected closing date on a separate line. Avoid counting the same item twice. Where an amount is unknown, label it as an estimate and identify who can confirm it.
Treat “we cover costs” as a question to clarify
Ask which costs the buyer means, whether they are paid in addition to the price or deducted from it, and where the arrangement appears in the agreement. Some costs relate to ownership or taxes rather than the buyer’s standard closing services. Your written estimate should make those distinctions clear before you compare the amount you expect to receive.
PUT IT INTO PRACTICE
Build your own net-proceeds worksheet
- Expected price and any price-change conditions.
- Mortgage payoff through the target closing date and other required payoffs.
- Attorney, transfer, recording, and other quoted transaction charges.
- Negotiated commissions, buyer credits, and any repair or cleanup spending.
- Additional loan payments, taxes, insurance, utilities, and maintenance while waiting.
Before you decide
Get more than one perspective, compare written terms, and allow time for independent advice. DreamPath is a property buyer and has a financial interest in purchasing homes. Our guides are intended to help you ask useful questions.
Sources and further reading
- Massachusetts Department of Revenue: deeds excise
Background on the transfer excise; ask the closing professional for current applicable charges.
- Real estate brokers and salespersons: consumer fact sheet
State licensing-board information about representation, listing agreements, and negotiable terms.