How To Calculate The Seller's Net Proceeds
If you’re selling your home in Delaware, you’re probably interested in knowing how much money you can expect to walk away with when you leave the settlement table. There’s a fairly easy way of estimating this number. The basic formula is:
Gross Amount Due to Seller
- Total Reduction Amount
Cash to Seller
How To Calculate the Gross Amount Due To Seller. Start with the Contract Sale Price. Add the Pro-Rations for taxes, sewer, and homeowner’s association dues.
How To Calculate the Total Reduction Amount. This amount is the sum of the seller’s settlement costs plus the amount needed to pay off the seller’s mortgage(s).
The Seller’s settlement costs usually consist of the following:
•commission to real estate agents for selling the home
•transfer taxes (1.5% of the sales price)
•courier fee for paying off the seller’s mortgage(s)
