When sellers ask "what's my house worth?" what they usually mean is "how much money will I actually walk away with?" Those are two very different numbers. The sale price is what a buyer agrees to pay. Your net proceeds from selling a house — the cash that hits your account after closing — is what's left once you subtract every selling cost and pay off your mortgage. This guide focuses on that final figure: how to calculate it, how to read a net sheet, and the traps (especially the mortgage payoff) that quietly shrink it.
The Only Number That Matters: Your Net Proceeds
Here is the formula, and it's genuinely this simple:
Net proceeds = Sale price − Total selling costs − Mortgage payoff
Everything else is just filling in those three blanks. The sale price is the contract price a buyer pays. Total selling costs are the fees that come out at closing — commission, Washington's Real Estate Excise Tax (REET), title insurance, escrow, and prorated property taxes. The mortgage payoff is whatever you still owe your lender, which gets wired off the top before you see a dime. What remains is your net — the number to plan your next move around, whether that's a down payment on the next house, paying off debt, or building savings.
A common shock: a $550,000 sale does not put $550,000 in your pocket, and it never will. Knowing your real net before you list keeps you from over-committing on your next purchase or being blindsided at the closing table.
What a Seller "Net Sheet" Is — and Why to Get One First
A seller net sheet is a one-page estimate that runs the formula above for your specific property. It starts with a realistic sale price, itemizes each closing cost, subtracts your mortgage payoff, and shows your estimated take-home. Title companies prepare them, and any good listing broker will build one for you for free before you sign anything.
The reason to get one before you list, not after you're in contract, is that it changes decisions. If your net at $540,000 versus $560,000 is the difference between comfortably buying your next home and not, you want to know that while you still control pricing and strategy. A net sheet turns a vague hope into a plan.
Get the Net Sheet Before You Price the Home
Sellers who see an itemized net sheet up front make calmer, better decisions — on list price, on which repair credits to accept, and on the timing of their next purchase. It's a free document. There's no reason to fly blind.
A Worked Example: $550,000 Southwest Washington Home
Let's run the full math on a typical Clark County sale priced at $550,000. Your actual figures will differ, but this shows how each piece stacks up to the net.
Step 1 — Subtract selling costs. For the complete, line-by-line treatment of every fee, see our guide to the cost to sell a home in Washington. In summary, on this sale you'd expect roughly:
- Real estate commission (negotiable; ~5% here): ≈ $27,500 — details in our Washington realtor commissions guide
- Combined REET excise tax: ≈ $8,845 — see how this is calculated in our Washington Real Estate Excise Tax (REET) guide
- Owner's title insurance: ≈ $1,500
- Seller's share of escrow / closing fees: ≈ $700
- Prorated property taxes: varies (often a few hundred dollars)
That's roughly $38,500–$39,000 in selling costs. So before touching your loan, the sale price of $550,000 nets down to about $511,000.
Step 2 — Subtract your mortgage payoff. This is where two identical homes produce wildly different nets. Say your remaining loan payoff is $300,000 (principal plus per-diem interest through closing — more on that below). Subtract it:
- Sale price: $550,000
- Less total selling costs: − $39,000
- Less mortgage payoff: − $300,000
- Estimated net proceeds: ≈ $211,000
Same house, no mortgage? Your net would be closer to $511,000. Same house with a $450,000 balance? Around $61,000. The mortgage payoff is usually the single biggest swing factor in your net, which is exactly why the next section matters so much.
The $8,845 REET Figure, Explained
On a $550,000 sale, the state REET is 1.10% on the first $525,000 ($5,775) plus 1.28% on the next $25,000 ($320) = $6,095, and the Clark County local REET adds 0.50% × $550,000 = $2,750, for about $8,845 total. Rates are current as of 2026; confirm the exact figure for your price and city with your escrow officer.
The Mortgage Payoff Trap
The most common net-proceeds mistake is assuming your payoff equals the balance on your latest mortgage statement. It almost never does. Here's what actually goes into a payoff:
- Remaining principal — the loan balance you'd expect.
- Per-diem interest — mortgage interest accrues daily, and you owe it through the exact day the loan is paid off. Your escrow officer orders an official payoff statement from your lender showing a daily interest amount (the per-diem), so the final figure depends on the closing date.
- Recording / reconveyance fees — small charges to release the lien from title once the loan is satisfied.
- Possible prepayment items — uncommon today, but some older loans carry a prepayment penalty. Check your note if you're unsure.
- Second loans or liens — a HELOC, second mortgage, or any recorded lien (contractor, tax, judgment) also gets paid from your proceeds.
Because per-diem interest is involved, a payoff is only exact for a specific date. If closing slips by a few days, the payoff ticks up slightly. This is normal — just don't budget down to the last dollar using your statement balance.
Factors That Move Your Net Up or Down
Beyond the mortgage, a handful of levers meaningfully change what you walk away with:
- Pricing accuracy. Price it right and you sell faster at or above ask. Overprice it, sit on the market, and you'll likely take a price cut anyway — after paying extra carrying costs. Our home pricing strategy for Southwest Washington covers this in depth, and you can start with a home value estimate for Vancouver, WA.
- Concessions and repair credits. Credits negotiated after inspection come straight out of your net. Strong prep and accurate disclosure up front reduce how much buyers ask for later.
- Timing and carrying costs. Every month the home doesn't sell, you keep paying mortgage interest, taxes, insurance, and utilities. A faster sale at a fair price often beats a slow chase for a higher number.
- Commission structure. Negotiable and your largest line item — but the right broker typically earns it back through a higher sale price and tighter negotiation.
Why Online "Net Proceeds Calculators" Mislead
Generic net-proceeds calculators are fine for a rough ballpark, but they routinely get the local details wrong. They tend to use a flat excise-tax guess instead of Washington's graduated REET, they often skip or wrong-guess the Clark County local rate, they can't see your real mortgage payoff with per-diem interest, and they estimate prorated taxes generically. Small errors on a half-million-dollar sale add up to thousands of dollars of difference. A broker-prepared net sheet uses your actual price, location, and loan — so the number you plan around is the number you'll actually get.
Good News: Tax Usually Doesn't Reduce Your Net
A frequent worry is that income tax will take a bite out of your proceeds. For most Washington homeowners selling a primary residence, it won't. Washington's capital gains tax exempts the sale of real estate, so there's no state capital gains tax on your home sale. And federally, the IRS primary-residence exclusion shields up to $250,000 of gain for a single filer or $500,000 for a married couple filing jointly, so most sellers owe no federal tax either. We cover the details, including the rarer cases where federal tax can apply, in our guide to capital gains tax when selling a home in Washington. This is general information, not legal or tax advice — confirm your specifics with a CPA, attorney, or your escrow officer.
Want to know your real net for your specific home? Request a free broker estimate and we'll prepare an itemized net sheet — commission, excise tax, title, escrow, prorations, and your mortgage payoff — so you know exactly what your sale will put in your pocket before you list.
Frequently Asked Questions
What are net proceeds from selling a house?
Net proceeds are what you actually walk away with after the sale closes. The formula is simple: sale price minus total selling costs (commission, Washington's REET excise tax, title, escrow, and prorations) minus your remaining mortgage payoff. The sale price is the headline number, but net proceeds is the number that lands in your bank account.
How do I figure out my net proceeds before I list?
Ask a local broker for a seller net sheet. It starts from a realistic sale price, subtracts each itemized cost, then subtracts your mortgage payoff to show your estimated take-home. A net sheet built for your specific property and price is far more accurate than a generic online calculator, and a good broker will prepare one for free before you list.
Why is my mortgage payoff higher than my last statement balance?
Your payoff is not the same as your statement balance. It includes the principal still owed plus interest that accrues each day until the loan is paid off (a per-diem amount), and sometimes a recording or reconveyance fee or, on older loans, a prepayment item. Your escrow officer orders an official payoff statement from your lender so the figure is exact on closing day.
Will I owe tax on my net proceeds in Washington?
Usually not. Washington's capital gains tax exempts the sale of real estate, so a homeowner owes no state capital gains tax on the sale. Most sellers also owe no federal tax because the IRS primary-residence exclusion shields up to $250,000 of gain (single) or $500,000 (married filing jointly). So income tax typically does not reduce your net. This is general information, not tax advice; confirm your situation with a CPA.
Are online net proceeds calculators accurate?
They are useful for a rough ballpark, but they often miss or misestimate the pieces that matter most locally: Washington's graduated REET, the Clark County local excise rate, your exact mortgage payoff with per-diem interest, and prorated taxes. A broker-prepared net sheet uses your real numbers and is the figure to plan around.
Avenir Gedarevich
Avenir is the Designated Broker and Real Estate Agent of Vancouver Property Group, serving home sellers across Southwest Washington and Clark County. License #25011405.