Considerable costs are sometimes overlooked when selling a house, which is why it is a good idea to complete a seller’s net sheet when selling a home. It’s usually known and expected that a seller will have to fork out some money to cover commissions and closing costs, but many smaller miscellaneous expenses are often overlooked. A seller's net sheet is an excellent way of tracking them.
What Is a Seller's Net Sheet?
A seller's net sheet is a document used in real estate transactions that shows an estimated breakdown of the financial aspects involved, specifically detailing the net proceeds a seller can expect to receive from the sale of their property. It is typically filled out by the listing agent and will estimate precisely how much cash you can expect to walk away with once you have subtracted the expenses associated with selling your home.
Here’s a closer look at what a real estate net sheet typically includes:
Items That Appear on a Seller’s Net Sheet
The first and possibly most important part when filling out your net sheet is to accurately enter the sales price that you expect to get for your home. The benefit of online net sheet calculators is that you can plug in different sales prices to see the monetary differences in the amount you would be pocketing when it’s all over. Accuracy is key , and if you’re working with a real estate agent, you should have access to a comparative market analysis report that will allow you to enter a reliable estimate of what you are expecting to get for your home.
Real estate agents fees and commissions are often the most significant expense when selling a home, and probably the most considered by a seller. It’s typical to expect to pay 6% of the sale price of your house in commissions, which will usually be split equally between the agents. However, make sure that you know exactly how much the real estate agents are charging for commission (as outlined by contract).
The next important step will usually be to fill out the loan payoff amount, which is how much you still owe to your mortgage company. Make sure to call your mortgage company and request a payoff statement, so you have the most realistic number to fill in here.
You’ll also have to include any fees associated with recording the transfer of the deed. Real estate transfer taxes vary based on where you live. Below, we’ll show you an example Florida seller's net sheet, but your state may have lower or higher transfer fees. Some states, like Texas, don’t even charge anything at all.
Sometimes, you may need to calculate the fees that will be associated with having a closing attorney. This may not always be applicable, but it is advisable to have a closing attorney to ensure the process goes smoothly from a legal point of view. Most title companies will contract out a closing attorney if you do not have one of your own.
Numerous other closing costs and fees will appear on the seller's net sheet. It’s also common these days for buyers to request or require that the seller cover some of their closing costs. Oftentimes a buyer cannot purchase a home without the seller covering closing costs, and if they can’t purchase the home, then you have no sale! On average, buyers closing costs are around 3%, so this should be a number you factor into your sheet.
All other miscellaneous costs should be entered as accurately as possible, and it’s best to ask your real estate agent for accurate amounts when filling out these portions of the seller’s net sheet. Miscellaneous costs and other expenses may include things such as taxes, home warranties, individual state-mandated inspections, appraisal repairs, and wire transaction fees.
Home inspections may be mandated for the seller in some states, so get some good quotes from professionals on how much you might expect to pay. By the same token, be prepared to foot the bill for any repairs found after the buyer’s home inspection. Although it’s hard to predict an amount to fill out here prior to the inspection taking place, you should always assume that you will have some costs associated with necessary repairs. In cases where the cost is as of yet unknown, it’s smart to over-estimate rather than under-estimate the expense to avoid any nasty surprises.
Real estate net sheets will usually ask you if you are a member of a Homeowners Association because if you are, you are required to provide the buyer with an HOA packet containing all the information about the association. Ordering these packets will cost money, and this expense needs to be included on your net sheet. The HOA will also inspect your property and give you a list of repairs that may be needed to get your property back into good standing.
Seller’s Net Sheet Example Florida Real Estate Sale
Sale Price : $365,000
Seller’s Fees
Total Seller’s Fees : $263,317
Estimated Net Proceedings : $101,683
How To Create a Seller’s Net Sheet
In many instances, a seller’s net sheet will be provided by a title company or readily available to find and fill out online. There are numerous templates or websites you can visit that will have pre-fabricated net sheets available, you simply need to plug in the information.
However, it’s usually a good idea to seek the assistance of your real estate agent when filling out a seller’s net sheet, as they will be able to find accurate dollar amounts you can expect to pay in costs and fees. It’s also recommended to seek the help of a professional as costs vary from state to state, and a template created online may not include all the expenses for your individual situation.
Real Estate Net Sheet Bottom Line
A real estate net sheet is a vital tool in real estate transactions. It provides sellers with a detailed estimate of their net proceeds after all costs and expenses are deducted from the sales price. This transparency helps in making informed decisions and ensuring a smooth transaction process. If your listing agent does not automatically provide you with a seller's net sheet, you should take the initiative to get one created.
Seller's Net Sheet FAQs
While most states charge some form of a transfer tax, there are a few that don’t charge any or simply charge much lower fees. For example, Texas charges no transfer taxes, while in Florida, you can expect to pay a 0.7% transfer tax. Sometimes, you might also pay a local city transfer tax. For example, the NYC transfer tax rate can go up to 1.425% for properties over $500,000.
Typically, the listing agent will fill out a seller’s net sheet. However, he or she is not required to fill one out. They may choose to do so for you, or if you ask, they will likely help you put one together.
It is standard to fill out a seller’s net sheet on various occasions so you are always on top of the finances. You and the listing agent should create a new seller’s net sheet when: