Creating a Home Proceeds Estimate

Overview

The Home Proceeds Estimate is a specialized deal type in Deal Details designed to calculate net proceeds from a home sale. This tool is essential for back-to-back closing scenarios where clients need to know their available funds for a new purchase, or anytime a seller wants clarity on their bottom line. All calculations update in real-time as you adjust variables like sale price, giving you and your client a dynamic "video game" experience to explore different scenarios together.

Before You Start

Requirement	Details
Client Information	Name and email address for the new client record
Property Address	Full address of the home being sold
Current Loan Balance(s)	Payoff amounts for first mortgage and any secondary liens (HELOC, second mortgage)
Sale Terms	Expected sale price, commission rates, and any seller-paid closing costs
Property Costs	Annual property taxes, HOA dues (if applicable)

Step-by-Step: Building a Home Proceeds Estimate

1. Create a New Client Record

Click to create a new client
Enter the client's name
Add their email address

2. Add the Existing Property

Select "Existing Property" as the property type
Enter the full property address
Allow the system to load the property card

3. Review and Update Property Details

Field	What to Enter
Property Taxes	Annual property tax amount
HOA/Annual Dues	Yearly homeowner association fees (if applicable)
Homeowner's Insurance	Optional for proceeds estimates

💡 Tip: Deal Details may pull in historical ownership and loan data from public records. Review this information but update with current figures from your client.

4. Save and Continue

Click Save Property to lock in the property details
Wait for the property to fully load before proceeding

5. Enter Sale Metrics

Field	Description
Buy Side Commission	Percentage paid to buyer's agent (typically 2.5-3%)
Sell Side Commission	Percentage paid to listing agent (typically 2.5-3%)
First Mortgage Payoff	Current balance owed on primary loan
Second Mortgage/HELOC	Balance on any additional liens
Seller Paid Closing Costs	Amount seller agrees to contribute toward buyer's costs
Closing Date	Expected date of sale (affects tax and HOA prorations)

6. Generate the Estimate

Click to build the sale estimate
Review the calculated net proceeds

⚠️ Important: Ensure all loan payoff amounts are current. Outdated balances will produce inaccurate proceeds calculations that could mislead your client.

Exploring Scenarios with Your Client

The Home Proceeds Estimate stays live and adjustable, allowing you to demonstrate different outcomes in real-time.

Adjusting Sale Price

Scenario	Use Case
Increase price	Show potential upside in a competitive market
Decrease price	Prepare client for possible price reductions if property sits

What Updates Automatically

Net proceeds recalculate instantly when you change the sale price
Prorated amounts (property taxes, HOA dues) adjust based on closing date
Commission totals reflect any price changes

Understanding the Results

Proceeds Breakdown

The estimate itemizes all factors affecting your client's walkaway money:

Line Item	Description
Sale Price	Gross amount from the sale
Commission (Buy Side)	Deducted based on percentage entered
Commission (Sell Side)	Deducted based on percentage entered
First Mortgage Payoff	Primary loan balance satisfied at closing
Second Mortgage/HELOC	Additional lien payoffs
Seller Paid Closing Costs	Agreed contribution to buyer
Prorated Property Taxes	Seller's share through closing date
Prorated HOA Dues	Seller's share through closing date
Net Proceeds	Final amount client receives

Finishing Up

1. Present to Your Client

Walk through the line-item breakdown together
Demonstrate price adjustment scenarios to set realistic expectations

2. Connect to a Purchase Deal (for Back-to-Back Closings)

Use the calculated proceeds to inform down payment capacity on a new purchase
Create a linked purchase deal using the net proceeds figure

Quick Reference

Create Client → Add Existing Property → Enter Property Details → Save → Input Sale Metrics (commissions, payoffs, closing costs) → Generate Estimate → Adjust Price to Explore Scenarios

Tips for Success

Get current payoff statements before building the estimate so your numbers reflect actual balances, not estimates from years-old records
Use real-time adjustments during client meetings to show how different sale prices impact their bottom line
Factor in timing by setting an accurate closing date, as property tax and HOA prorations can shift the final number by hundreds of dollars
Include all liens such as HELOCs, second mortgages, or home equity loans to avoid surprises at closing
Pair with purchase scenarios for move-up buyers who need to understand how much they can put toward their next home