What Does a Seller’s Net Sheet Include?
According to Zillow Economic Research, they predict that home values will continue to grow in 2021 – by as much as 13.5%. While the median home listing price in Pensacola, Florida, is $213,900, there are certainly many homes that sell for around $1 million. The lure of a quick, large profit may spur more people to sell their homes, especially when the demand is so high.
However, it’s important to remember that even if you sell your home for $400,000, you will not take home that full amount. Why? Because there are many fees and expenses associated with home sales that must be figured into the sale.
A seller’s net sheet is a tool to help you understand exactly what fees will be subtracted from the home sale and how much you can expect to arrive in your bank account at the end of the process.
As a rule of thumb, you can expect to subtract approximately 10% of your home sale to cover expenses and fees such as:
- Real estate commissions (typically 5-6%)
- Seller concessions (costs you will cover for the buyer)
- Title insurance (protection for the buyer to ensure you have clear title to the property)
- Title search (protection for the buyer to ensure there are no issues that can impact ownership)
- Escrow services (protection for the seller to ensure the deposit money will become rightfully yours)
- Home warranty (to cover repair or replacement costs of appliances, electrical, plumbing, etc. prior to the home sale)
- Other closing costs (transfer taxes, attorney fees, HOA fees, etc.)
- Mortgage payoff (amount to satisfy the mortgage loan plus any interest you owe)
- Miscellaneous mailing/wire services
There may be other expenses such as home repairs that may need to be done prior to the sale – repairs that are identified in the home inspection. You may also decide to do some renovation projects to upgrade the look of your home – such as a kitchen or bathroom remodel – prior to listing your home. And when your home is being shown to potential buyers, it might be beneficial to invest in professional staging to make your home as visually inviting as possible. While these are not part of the seller’s net sheet, they may affect the bottom line of your home sale profit.
Don’t forget about your own moving costs! After you sell your home, you may need professional movers to get you out of your current home and into your new one.
Clear Title is a title company in Pensacola, Florida, that can help you estimate all of the closing costs for your home sale. Led by Board Certified Real Estate Attorney Stephen R. Moorhead, the team has 100s of years of combined experience in the complexities of home selling and buying. If you have questions, we have answers.
To schedule a meeting with our experts and explore our Pensacola title services, contact us today at (850) 202-8518 or visit ClearTitlenwfl.com.