Understanding Discrepancies in Your Home Sale Net Proceeds

Selling your home can be stressful, and one thing that often throws sellers off is the difference between the net proceeds estimate your Realtor provides and the actual numbers from the title company. Let’s dive into why this happens and how it affects your final payout.

When a Realtor runs your net sheet estimate, they're giving you a rough idea of how much money you’ll make after covering various fees—like title, county, HOA, seller contributions, and commissions. However, it’s essential to know that this is an estimate, not a final figure.

Once your home is under contract, the title company steps in and contacts your mortgage company to get your loan payoff amount. Here's where things can get tricky. If your mortgage company hasn’t yet paid your property taxes or the county hasn’t cashed the check, your net proceeds might drop because those taxes still need to be accounted for at closing. While this sounds concerning, you’re not losing money. Your escrow will refund you the difference after closing.

In some cases, the mortgage company may rush to pay those taxes before you close, meaning everything gets squared away, and your net proceeds go back up. If not, you'll receive a check in the mail for your outstanding escrow balance after the sale.

So, if your net numbers fluctuate a bit, don’t panic. It’s a normal part of the process. The key is understanding what’s happening behind the scenes so you can stay informed and prepared.

This blog helps you navigate the closing process with more confidence, ensuring you're not blindsided by any last-minute surprises with your net proceeds.