How to use the seller offer comparison calculator
- Add a row for each offer with its price, the concessions you would give, any repair credits and the days until closing.
- Tick contingencies where an offer depends on one. The tool marks them but does not put a value on them.
- Enter the commission from your listing agreement, the mortgage payoff and the monthly cost of owning the home while you wait.
- Read the offers ranked by net proceeds and how far each is from the best.
Formula
commission = price x commission percent
cost of owning = monthly cost x 12 / 365 x days until closing
net proceeds = price - concessions - repair credits - commission - payoff - cost of owning - other costs
The same payoff, commission rate and other costs apply to every offer, so the ranking comes from the differences between the offers: price, concessions, credits and time to close.
Three offers on one home
Offer A is $400,000 closing in 30 days. Offer B is $412,000 with $12,000 of concessions and $2,000 of repair credits, closing in 45 days with contingencies. Offer C is $395,000 closing in 21 days. With a 3% commission, a $150,000 payoff, $2,100 a month to carry the home and $1,500 of other costs, A nets $234,428.77, B nets $231,033.15 and C nets $230,200.14.
Offer B has the highest price but is $3,395.62 behind A after concessions, credits, the larger commission and 15 more days of carrying cost. With no commission, payoff, carrying or other costs, a $400,000 offer against a $410,000 offer with $12,000 of concessions nets $2,000 more for the lower price.
Beyond the price
A higher price can leave you with less once concessions and credits are taken out, and a slow closing costs money to carry the home. The tool puts those on one footing. What it cannot do is value risk. A contingent offer may fall through and send you back to the market, so weigh the marked offers yourself.
Once you choose an offer, the Home Sale Proceeds Calculator builds the full statement. The Capital Gains Calculator covers the tax side and the Mortgage Payoff Calculator the payoff figure.
Carrying costs
Enter the cost of owning the home each month, including interest, property tax, insurance and utilities. The tool charges it by the day until each closing date. If you are moving into a new home, you may have other costs that overlap, which you can add to the monthly figure.
Assumptions and limits
- Commission, payoff and other costs are the same for every offer.
- Concessions and repair credits are fixed amounts you agree to pay at closing.
- The monthly cost of owning is charged evenly by the day, using 365 days in a year.
- Taxes on the sale, transfer fees that depend on the price and the risk of contingencies are not modeled.
- This is arithmetic, not real estate, tax or legal advice.
Frequently asked questions
Why does the tool rank by net proceeds?
Price alone ignores what you give back in concessions and credits and what a longer closing costs you. Net proceeds is the amount you keep.
Where do I enter commission that differs by offer?
The tool uses one commission percent. If a buyer's agent commission differs, run the offers separately or adjust the other costs.
What does the contingent mark do?
It only labels the offer. A contingency can delay or cancel a sale, but its value depends on your situation, so the tool leaves that to you.
Should I include moving costs?
Those are the same whichever offer you take, unless the closing date changes them. Add any such difference to the monthly cost.