Definition
This is what the seller receives after closing—the sale price minus their costs (agent commission, payoff of their mortgage, taxes, and other expenses). It's their profit from the sale.
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Calculation: Sale price - seller costs - mortgage payoff - liens = proceeds. Seller wants to maximize proceeds. Negotiation balances seller/buyer interests. Professional settlement statement calculates precisely. Direct deposit post-closing. Verification essential. Timing affects cash flow. Tax considerations. Real estate agent commission significant expense. Title company handles calculations. Professional closing coordination important.
Pro Tip
Request detailed settlement statement calculation. Verify all deductions.
Example
Seller proceeds of $180,000 resulted from $450,000 sale minus $250,000 mortgage and $20,000 costs.