Imagine a homeowner in Bloomfield who watches a similar house on the next street list for $650,000. She does the quick math in her head, pictures that number in her bank account, and starts planning her next move around it.

It is a natural thing to do. It is also the most common misunderstanding I see among sellers. The price a home sells for and the amount a seller actually receives are two different numbers, and the gap between them can surprise people who have not looked at it in advance.

My goal in this article is simple: to walk you through where the money goes, so you can plan with real numbers instead of hopeful ones.

Think of It Like a Paycheck

When you accept a job offer, the salary is the headline. But what you spend is your take-home pay, after taxes, insurance, and retirement contributions. Nobody is cheated; the gross number and the net number simply answer different questions.

Selling a home works the same way. The sale price is your gross. Your net proceeds are what remain after the mortgage is paid off, the closing costs are settled, and the other obligations of the sale are met. Planning around the net number is what lets you make good decisions about your next home.

Where the Money Goes

Every sale is a little different, but most sellers in Essex County will see some version of the following.

Your Mortgage Payoff

For most sellers this is the largest deduction by far. Your payoff amount is not the same as the balance on your last statement, because it includes interest accrued up to the closing date. Your lender can provide an exact payoff figure, and it is worth requesting early so there are no surprises.

Real Estate Commission

Agent compensation is negotiable, and it should be discussed openly and in writing before you sign anything. Whatever you agree to becomes a line item at closing, so understand exactly what is included and how it is calculated.

New Jersey Closing Costs

New Jersey sellers typically encounter several costs at the closing table:

• Realty transfer fee. A state fee on the sale, tiered by price. Your attorney or title company can calculate the exact amount.
• Attorney fees. Attorney review is a standard part of a New Jersey sale.
• Title and recording items. Charges that vary by transaction.
• Municipal requirements. Many Essex County towns, from Montclair and Glen Ridge to Nutley and Verona, require a certificate of occupancy or a smoke and carbon monoxide inspection before closing. Rules and fees differ by municipality, so check with your town early.

A good plan starts with the number you will actually receive, not the number on the listing.

Preparing the Home

Repairs, deep cleaning, painting, landscaping, and professional photography all cost money before a buyer ever walks in. Some of these are worth it and some are not, and a candid conversation about which is which can save you real dollars.

Prorations and Final Bills

Property taxes and certain utilities are divided between you and the buyer based on the closing date. Depending on when your taxes are due, this can add to or subtract from your proceeds. Moving costs and any overlap between homes belong in the budget as well.

A Simple Example

Let's put numbers to the Bloomfield homeowner's situation. These figures are for illustration only; your own costs will differ.

Notice that the costs of selling, apart from the mortgage, total about $47,500, or roughly 7% of the sale price. That is a reasonable planning range, though your own number could be higher or lower. The point is that a seller who budgeted for the full $650,000 would be short by a significant amount.

What About Taxes?

Many homeowners are relieved to learn that federal tax law allows some sellers to exclude a substantial portion of the profit from the sale of a primary residence, often up to $250,000 for a single filer and $500,000 for a married couple filing jointly, if certain ownership and residency requirements are met.

Whether that applies to you depends on how long you have owned and lived in the home, and on details of your own situation. That is a question for a qualified tax professional, and it is best asked before you list, not after you close.

Your Net Proceeds Checklist

Before you decide on a price or a timeline, gather these items. Each one turns a guess into a fact.

Frequently Asked Questions

The Short Version

The price you agree on is the headline, but your net proceeds are the story that matters. Mortgage payoff, agent compensation, New Jersey closing costs, preparation, and prorations all play a part. None of them are mysteries once you see them laid out, and none of them should catch you by surprise at the closing table.

A little arithmetic done early can make the difference between a calm, confident move and a stressful one.

This article is provided for educational purposes only and should not be considered financial, legal, tax, or mortgage advice. Market conditions change over time, and every situation is unique. The figures in the example are illustrative only. Consult the appropriate licensed professionals regarding your specific circumstances.

© 2026 Douglass Gillespie • EPIQUE Realty • All Rights Reserved