Net Proceeds
How much actually remains from the sale price?
How much actually remains from the sale price?
Net Proceeds is not a stage for re-explaining payment procedures. It starts with the actual contract price, subtracts the relevant deductions, and separates confirmed figures from estimates to show the realistic range of recoverable capital.
Do not revisit the target price from Pricing Strategy here. Use the actual contract price, or a realistic sale-price range if the deal is not yet fixed, as the starting value.
Treat loan repayment, taxes, transaction costs, and deposit or service-charge settlements as deductions—not as transaction-procedure lessons.
Detailed contract procedures such as who pays what and when belong in contract review and final Closing & Handover.
Label every figure as CONFIRMED, ESTIMATED, or TO CHECK. Do not mix different levels of certainty into one number.
Separate the minimum amount currently confirmed from the expected range. Keep unknown values as explicit items to verify.
What to confirm first in this step
Do not stop at what to look at. Connect each item to the evidence you will check and the next decision it supports.
Do not restate the target price from Pricing Strategy.
If the contract is signed, use the actual sale proceeds; if not, use a realistic price range and mark its status.
Instead of using only the loan balance, deduct the actual expected repayment including any prepayment cost and interest settlement that require confirmation from the financial institution.
This page does not cover the repayment procedure itself.
Keep expected tax as an estimate until professional confirmation and do not mix it with confirmed taxes or costs.
This page does not teach tax calculation; it focuses only on the impact on recoverable capital.
Do not group brokerage, legal, and similar transaction costs into one miscellaneous line.
Record each amount and verification status separately.
Detailed payment procedures or fee rules should be confirmed elsewhere.
Do not re-teach the settlement method.
Include only amounts expected to be deducted or transferred as of closing, plus any unresolved amount.
Final confirmation occurs in Closing & Handover.
CONFIRMED means verified, ESTIMATED means the current estimate, and TO CHECK means still unresolved.
Separating them lets you see both currently confirmed proceeds and the expected proceeds range.
Work through five practical steps
Each step should define the task, what to check, what to watch out for, and what completion looks like.
Set the starting value.
Enter the actual contract price or a realistic price range and mark its status.
Do not use the target price as if it were already confirmed.
The starting amount and its status are defined.
Confirm debt deductions.
Enter the actual expected repayment amount based on confirmation from the financial institution.
Do not stop after subtracting only the loan balance.
Debt deductions are classified as CONFIRMED or TO CHECK.
Enter taxes and transaction costs by status.
Enter taxes, brokerage, legal, and other transaction costs as separate items.
Do not treat estimated tax as a confirmed figure.
Each cost has an amount and a status.
Reflect expected settlement amounts.
Include deposits, service charges, receivables, advances, and other amounts expected to be deducted or transferred at closing.
Do not re-teach the settlement procedure here.
Expected settlement amounts and unresolved items are clearly separated.
Separate the confirmed minimum from the expected range.
Calculate one current confirmed amount using only CONFIRMED values, and a separate expected range that also includes ESTIMATED values.
Do not present one number as fully final.
The currently confirmed amount, expected range, and unresolved list are visible at the same time.
Use situations to follow the decision flow
The cases do not give a single right answer. They show what facts to observe and what to verify next.
Same sale price, different debt
Both properties sell for KRW 2.
0 billion, but Property A must repay KRW 500 million of debt while Property B must repay KRW 1.
1 billion.
Even with identical taxes and transaction costs, debt alone creates a KRW 600 million difference in recoverable capital.
You cannot compare transaction outcomes from the sale price alone.
Replace the loan repayment figure with the amount confirmed by the financial institution and continue adding the remaining deductions.
When tax and settlement are large
The sale price is high, but expected taxes, tenant deposits, and other settlement items are also large.
Even with a high asking or contract price, the capital available for the next investment may be smaller than expected.
A successful pricing outcome and the amount of capital recovered are not the same measure.
Separate the tax and settlement items by confirmation status and recalculate the minimum proceeds and expected range.
Numeric example separating confirmed and estimated values
Educational example: KRW 2.
5 billion sale price − KRW 800 million loan repayment confirmed by the financial institution − KRW 30 million transaction costs − KRW 350 million deposits and other settlements = KRW 1.
32 billion before tax.
After an estimated KRW 220 million tax, expected net proceeds are about KRW 1.
10 billion.
Even if KRW 2.
5 billion, 800 million, 30 million, and 350 million are confirmed, the full KRW 1.
10 billion should not be called final if the KRW 220 million tax is still only an estimate.
This example shows how to separate the confirmed structure from figures that can still change.
Update estimated tax after tax review, then replace settlement estimates with actual closing figures during Closing & Handover.
Six questions you should be able to answer in this step
Not knowing an answer is not failure. It shows where further verification is needed.
This establishes the starting point for cash inflows.
If the contract terms are not final, keep this separate from the Pricing Strategy target and mark it pending.
The loan balance alone does not show the full amount that will be deducted.
Confirm prepayment costs and interest settlement with the financial institution as well.
This separates uncertainty in the amount of capital you can recover.
If it is estimated, show it as an expected range until tax review is complete.
This reduces omissions hidden inside one miscellaneous-cost line.
Attach an amount and confirmation source to each cost item.
This separates figures that may change before or after the final payment date.
Record the reference date and responsible party in the settlement table.
This prevents overestimating the capital available for the next decision.
Calculate a minimum using confirmed figures only and keep estimates in a separate scenario.
Net Proceeds: three things to remember
More important than the sale price is knowing how much capital will actually be available for the next decision after every deduction is classified by status.
This page is a general educational checklist. Actual price, tax, rights, financing, and building-condition decisions depend on transaction terms and local rules and may require confirmation from relevant institutions or professionals.