Home seller opportunity cost calculator
Home Seller Opportunity Cost Calculator
Should you sell now or wait for a higher price? This calculator shows the sale price you would need later for waiting to leave you as well off as accepting today's offer. It accounts for your holding costs, any rent you collect, the return you give up on your sale proceeds, and the cost of selling.
Your Situation
The price in the offer you have right now. Use the offer price, not the listing price or the price you hope to get.
$
The share of the sale price that goes to selling costs: agent commissions, transfer taxes, escrow, and title. For example, 7.66% on a $1,840,000 sale is about $141,000. Your seller net sheet adds these up for you.
%
What it costs you each month to keep the house while you wait: property tax, insurance, upkeep, and any loan interest. Leave out the part of a loan payment that pays down the loan balance (principal), because you get that money back when the house sells.
$
The rent you would receive each month if you rent the house while you wait, after paying for property management and repairs. Enter 0 if the house would sit empty or you would live in it.
$
How many months you would wait before selling, from 1 to 24. A longer wait raises the price you need, because the costs of waiting add up each month.
mo
The yearly rate your sale money could earn or save you. If you would use it to pay off a loan, enter that loan's interest rate, because each dollar you pay off stops costing you that interest. If you would invest it, enter the yearly return you expect. This is before taxes.
%
Costs you would pay one time because you wait, such as leasing fees, cleaning or repairs between tenants, repainting, or staging for a second sale. Enter 0 if there are none.
$
Your Analysis
Net Proceeds If You Sell Now
What you would receive at closing if you accept today's offer, after the sales cost percentage you entered. It does not subtract a loan payoff or prorated property tax.
$0
Total Cost of Waiting
The money you give up by waiting, in dollars at the end of the wait: the return you could have earned on your sale money, plus your holding costs after any rent, plus one-time costs. If your rent is higher than your holding costs, this number is lower.
$0
Break-Even Sale Price
The price the house would need to sell for after the wait so that you end up with the same money as accepting today's offer now. A later price above this leaves you ahead. A later price below it leaves you behind.
$0
Enter your information to see the sale price you would need to break even.
Detailed Breakdown
In dollars at the end of the wait period.
Net Proceeds If You Sell NowWhat you would receive at closing if you accept today's offer, after the sales cost percentage you entered. It does not subtract a loan payoff or prorated property tax.
$0
Return Given Up on Those ProceedsWhat your net proceeds would have grown by at the yearly return you entered, compounded over the wait. It counts as a cost of waiting because you do not have that money during the wait.
$0
Net Holding Costs After RentYour monthly holding costs minus your monthly rent, added up over the wait. Each month's amount is carried forward at the same yearly return, so earlier months count a little more. A negative number means rent is higher than your costs.
$0
One-Time Costs of WaitingThe one-time costs you entered, added at face value.
$0
Net Proceeds Needed From a Later SaleThe money you would need to receive from a later sale, after sales costs, to match selling now. It equals your net proceeds now plus the total cost of waiting.
$0
Sales Costs on the Later SaleThe sales cost percentage applied to the later, higher price. It is added back because a later sale has selling costs too.
$0
Break-Even Sale PriceThe later sale price at which the money left after sales costs equals the net proceeds needed.
$0
Understanding Your Results: The break-even sale price is what the home would need to sell for after the wait so that you end up with the same money as you would by accepting today's offer. It adds the return you give up on your sale proceeds, your holding costs after any rent, and any one-time costs, and then adds back the sales costs on the later sale.
- The return is before taxes and is compounded over the wait. The net amount of each month's holding costs is carried at the same rate.
- Holding costs should leave out principal payments, because principal is returned to you when the home sells.
- One-time costs are added at face value.
- The later sale is assumed to close at the break-even price. Prices may also be lower than today's offer.
- Ask your tax advisor how rental income and any gain or loss on the sale would be taxed.
Break-Even Sale Price by Wait Period
Each price is the break-even sale price for that wait and yearly return, using your other inputs. The middle column uses your rate. The gold row is your wait period.
The total sale price needed at each wait period and return rate, using your other inputs. Percentages show how far above today's offer each price is.