How to calculate your net proceeds before you sell
Selling price minus everything between you and the bank. Work it out before you list.
The price on the offer isn’t what lands in your account. For most sellers the gap is bigger than expected, which is why you work it out before you list.
The basic formula
Selling price − agent commission − bond cancellation costs − compliance certificates and repairs − municipal clearance and advance payments − your bond balance = what you take home.
What goes into it
| Item | What to know |
|---|---|
| Agent commission | Paid by the seller. It is not a fixed rate: it is negotiated between you and the agent. VAT is added on top of commission. |
| Bond cancellation | Your bank’s cancellation costs and the attorney’s fee. Give your bank written notice of the cancellation in time. A missed notice period can mean extra interest, so ask your bank for its notice period. |
| Compliance certificates | Electrical, water installation, and where they apply gas, electric fence and beetle. If an inspection finds faults they must be repaired first. Full guide to the certificates. |
| Rates and municipal clearance | A clearance certificate confirming rates and taxes are paid is needed for transfer. You may have to pay rates and services in advance. Any overpayment is refunded afterwards, which can take time. |
| Repairs | Whatever the offer to purchase or the inspections require you to fix. |
| Moving costs | Yours to cover. |
| Capital gains tax | Can apply depending on your circumstances. Ask your accountant. |
The buyer, not the seller, pays transfer duty (if applicable), the transfer attorney’s costs and the new bond registration costs.
A worksheet you can fill in
| Line | Where the number comes from |
|---|---|
| Expected selling price | Sold prices of comparable homes, not asking prices |
| Less: commission plus VAT | The rate you agree with your agent |
| Less: bond cancellation | Your bank and your attorney |
| Less: certificates and repairs | Quotes from the registered inspectors |
| Less: municipal clearance and advances | Your municipal account and your attorney |
| Less: outstanding bond balance | Your bank statement |
| Estimated net proceeds | The result |
I run this calculation with every seller in the free property consultation, using your numbers, so you have a very good estimate before you decide.
Read next: Why overpricing is the most expensive mistake sellers make.
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Sources
General information only. It is not legal, tax or financial advice. Confirm figures with your conveyancing attorney, bank or accountant before you decide. See the Disclaimer.
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