net to seller = sale price − commission − closing costs − loan payoff
Seller's Net Proceeds
net to seller = sale price − commission − closing costs − loan payoff
sale price — The final sale price
commission — Total commission paid by the seller
closing costs — Seller-paid closing costs
loan payoff — Remaining mortgage balance paid off at closing
Worked example: Sale price $450,000, commission $27,000, closing costs $4,000, loan payoff $210,000.
$450,000 − $27,000 = $423,000
$423,000 − $4,000 = $419,000
$419,000 − $210,000 = $209,000
$209,000 net to the seller
Seller's Net Proceeds practice questions
Every Freehold question shows why the right answer is right — and cites its source.
Annual property taxes of $2,400 are paid in arrears. If closing occurs exactly at the end of June, what is the seller's share for the six months of ownership?
$1,200
$1,000
$1,400
$2,400
Show answer & explanation
$1,200 — Monthly taxes are $2,400 ÷ 12 = $200. The seller owned the property for six months, so the seller's prorated share is $200 × 6 = $1,200, credited to the buyer at closing.
Source: PSI National Real Estate Exam Content Outline §11 Real Estate Calculations
Annual property taxes of $3,600 are paid in arrears. If closing occurs exactly at the end of April, what is the seller's prorated share for the four months of ownership?
$3,600
$1,200
$300
$2,400
Show answer & explanation
$1,200 — Monthly tax is $3,600 ÷ 12 = $300. The seller owned the home for four months, so the seller's share is $300 × 4 = $1,200.
Source: PSI National Real Estate Exam Content Outline §11 Real Estate Calculations
Annual HOA dues of $2,190 are prorated using a 365-day year. The seller owned the home for 146 days this year. What is the seller's share?
$2,190
$888.17
$438
$876
Show answer & explanation
$876 — Daily rate is $2,190 ÷ 365 = $6. Over 146 days the seller's share is $6 × 146 = $876.
Source: PSI National Real Estate Exam Content Outline §11 Real Estate Calculations
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