Work the setup, then the numbers

Seller net proceeds

Keep commission, loan payoff and other charges separate when calculating the cash left to a seller.

Sale price ($)Agreed seller commission charge (%)Loan payoff ($)Other seller charges, net of credits ($)Allocated settlement fee ($)Allocated HOA or association charges ($)Allocated recording / loan-satisfaction charges ($)Seller concessions ($)Assigned transfer tax (use the California tax calculator) ($)Accrued annual property-tax bill paid later by buyer ($)Seller days in the accrued annual tax bill (days)Stated annual day-count basis (360, 365 or leap-year 366) (days)

Commission charge: $33,600.00
Seller accrued property-tax share: $3,156.16
Itemized seller charges: $2,054.00
Seller net: $286,689.84

Follow the arithmetic

640,000 - (640,000 x 0.0525) - 310,000 - 4,500 - (6,400 x 180 / 365) - 2,054. The tax input assumes an accrued bill paid later by the buyer; the seller's share is a seller charge. Other proration directions belong in the net charge/credit field.

Intermediate values keep precision; dollar results display to cents.

The formula and its assumptions

Net = sale price - (sale price x stated commission rate) - payoff - other seller charges

Commission and who pays it are negotiated. These inputs assign charges for an exercise, not a required allocation. A negative net means additional funds are needed. Add transfer taxes and other amounts to the charge field only if the problem assigns them to the seller. Itemized charges are added to, not included in, the other-charges field. The tax proration assumes an accrued bill paid later by the buyer. Use the separate calendar proration tool to determine days and the separate California transfer-tax tool to determine the assigned tax.

DRE Reference Book: real estate finance

Test the method without hints

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