How Much Will I Walk Away With? Seller Net Proceeds, Explained
Daniel ParkNo. 140
Key takeaways
- Net proceeds = sale price minus mortgage payoff(s), commissions, seller closing costs, concessions and prorations.
- In Northern Virginia, sellers typically pay the state grantor tax (0.1% of price) plus two regional transportation fees, the WMATA capital fee and the congestion relief fee (0.1% each).
- Your payoff is higher than your loan balance on a statement because of daily interest through the payoff date.
- Real estate taxes and HOA dues are prorated to the closing date, which can add or subtract cash depending on what you have already paid.
- A seller net sheet built on real comparable sales is the only estimate worth trusting; rerun it whenever the offer terms change.
Your seller net proceeds are what remains after the sale price pays off your mortgage and covers the costs of selling: commissions, Virginia transfer taxes, settlement fees, any concessions you agree to, and prorated taxes and dues. For many Northern Virginia sellers, total selling costs land somewhere around 6% to 8% of the price before the mortgage payoff, though it varies with commission arrangements and concessions. Below I break down each line, show an illustrative example, and list the items sellers most often forget.
The formula, in plain terms
Think of the settlement statement as a funnel. Start with the contract price, then subtract in this order:
- Liens: first mortgage payoff, any home equity line, and any judgments or liens recorded against the property.
- Commissions: your listing brokerage’s fee, plus any compensation you agree to pay toward the buyer’s brokerage.
- Government charges: Virginia grantor tax and, in Northern Virginia, the regional WMATA capital fee and regional congestion relief fee.
- Settlement and legal costs: deed preparation, settlement or closing fee for the seller side, release recording fees, courier and payoff fees.
- Concessions and credits: closing cost help, repair credits or a home warranty you agreed to provide.
- Prorations: real estate taxes, HOA or condo dues, and sometimes utilities, split to the day of closing.
- Association costs: resale disclosure packet fees and any transfer-related charges.
Whatever is left is your net. My seller net sheet tool runs this math automatically, and my earlier post on what sellers pay at closing in Northern Virginia goes deeper on each fee.
The line items that matter most
Your mortgage payoff
Your payoff is not the principal balance on your last statement. Mortgage interest is paid in arrears, so the payoff includes interest from your last payment through the day the lender receives funds, plus any fees. The settlement company orders an official payoff letter. If you have a HELOC, it must be paid and closed, which requires a signed request to freeze and close the line.
Commissions
Commissions are always negotiable and are set in your listing agreement. Since the 2024 industry practice changes, offers of buyer brokerage compensation are not made in the MLS; instead, buyers may ask sellers to cover some or all of their agent’s fee in the offer. Decide in advance how you will handle those requests, because they directly affect your net.
Virginia grantor tax and the two regional fees
Virginia’s grantor tax is 50 cents per $500 of value (0.1%). Northern Virginia localities also collect a regional WMATA capital fee and a regional congestion relief fee, each 10 cents per $100 (another 0.1% apiece). The law places all three on the seller, though the parties may agree otherwise. On a $750,000 sale, that is about $750 each, or $2,250 combined.
Prorated taxes and dues
Virginia localities bill real estate taxes in installments on their own schedules, and your settlement agent splits the year’s tax to the closing date. If you have already paid a bill covering days after closing, you get a credit; if taxes for days you owned the home are not yet billed, you owe a debit. HOA and condo dues are prorated the same way.
A worked example
This is an illustrative example with round numbers, not a quote or a real sale. Assume a $750,000 Fairfax County townhouse with a $380,000 loan payoff and a 30-day closing.
| Line item (illustrative) | Amount | Notes |
|---|---|---|
| Contract sales price | $750,000 | Starting point |
| Mortgage payoff (with daily interest) | ($381,200) | Balance plus interest to payoff date |
| Listing brokerage fee (example) | ($18,750) | Negotiated in listing agreement |
| Buyer brokerage fee paid by seller (example) | ($18,750) | Only if agreed in the contract |
| Virginia grantor tax (0.1%) | ($750) | Va. Code § 58.1-802 |
| Regional WMATA capital fee (0.1%) | ($750) | Va. Code § 58.1-802.3 |
| Regional congestion relief fee (0.1%) | ($750) | Va. Code § 58.1-802.4 |
| Settlement, deed prep, release and courier fees | ($1,200) | Varies by company |
| Closing cost credit to buyer | ($5,000) | Negotiated |
| HOA resale disclosure packet | ($400) | Varies; capped by Virginia law |
| Real estate tax proration | ($1,100) | Depends on billing timing |
| Estimated net proceeds | $321,350 | Before any capital gains tax |
Two takeaways from this example: commissions and concessions are the biggest negotiable items, and the payoff is the biggest fixed one. If you plan to buy your next home with this money, also see how to buy and sell at the same time.
Taxes after the sale
Net proceeds on the settlement statement are not the same as taxable gain. Many primary-residence sellers can exclude up to $250,000 of gain ($500,000 for most married couples filing jointly) if they meet the ownership and use tests in IRS Publication 523. Rentals and second homes follow different rules. My post on capital gains tax when you sell covers the basics, and a CPA can apply them to your situation.
Common mistakes when estimating net proceeds
- Using the loan balance instead of an actual payoff figure.
- Forgetting a HELOC, solar loan or other lien recorded against the home.
- Leaving out buyer requests for closing cost help or buyer agent compensation.
- Ignoring the two regional transportation fees because older calculators only show the grantor tax.
- Assuming prorations always favor the seller.
- Not budgeting for moving, overlap housing or a rent-back period after closing.
- Planning around a list price instead of a price supported by recent comparable sales.
Daniel’s tip: Ask your lender for a payoff estimate dated about two weeks after your expected closing before you even list. It removes the biggest unknown from your net sheet and gives you a cushion if settlement slips a few days.
Want a real net sheet for your home, based on today’s comparable sales and your actual payoff?
You can also start with an instant home value estimate and refine from there. For legal or tax questions about your sale, consult a Virginia real estate attorney or CPA.
Frequently asked questions
How do I calculate how much I will make selling my house?
Subtract your mortgage payoff, commissions, transfer taxes, settlement fees, concessions and prorations from the sale price. A seller net sheet prepared by your agent does this line by line.
What percentage of the sale price goes to closing costs for sellers in Virginia?
It varies, but many Northern Virginia sellers see total costs, including commissions, in roughly the 6% to 8% range before their mortgage payoff. Concessions and commission terms move that number most.
Who pays the grantor tax in Virginia?
Virginia law places the grantor tax on the seller, at 50 cents per $500 of value. The buyer and seller can agree to split or shift it in the contract.
When do I get my money after closing in Virginia?
Sellers are usually paid by wire or check after the deed is recorded and funds are disbursed, often the same day or within a business day or two. Confirm wiring instructions directly with your settlement company by phone.
Sources
Filed under Money & Mortgages, Selling Your Home
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