What is a Seller Net Sheet?
This year has proven to be a great time for selling a home. Inventory is tight and prices are skyrocketing, so it really is a seller’s market. However, the sale price of your home is not the profit you’ll pocket from the transaction. There are many costs and fees associated with selling a house, and a seller’s net sheet breaks them down in a straightforward document. What is a seller’s net sheet?
A seller’s net sheet documents the specific fees associated with selling your house, and then shows you exactly how much money you’ll walk away with after closing. It is safe to account for about 10% of the purchase price to go towards these expenses at closing. Some of these expenses on a seller’s net sheet include:
Commissions: This is the largest line item on the seller’s net sheet. Generally the seller pays the commission fee for both the buyer’s agent and seller’s agent. This number varies based on the contract, but is usually around 5-6% of the purchase price, which is then split between the two real estate agents.
Appraisal fees: The appraisal determines the market value for the home. An appraiser will take into account specific features of your home, as well as recent sale prices of similar properties.
Title search: This covers the cost of determining who the titled owner is, as well as what, if any, liens or challenges to the title exist. The title search helps to ensure that the title can legally be transferred.
Title insurance: In case of any surprises found during the title search, title insurance covers the costs to remedy the issue.
Seller concessions: These fees are determined as part of contract negotiations between the buyer and seller. Concessions may be offered if there is a discrepancy between the contract price and appraised value, or if repairs are necessary after the home inspection.
Mortgage payoff: The amount remaining on the buyer’s mortgage loan (if one exists) is collected by the mortgage company.
Home warranty: While not a requirement, a home warranty is often purchased as a courtesy to the buyer to cover any repair costs for appliances and other general repairs during the first year(s) of ownership.
Other fees vary based on the property and the contract, and can include (but aren’t limited to) broker fees, HOA fees, attorney fees, escrow fees, and transfer taxes.
Do you have questions about seller net sheets? Buying or selling a home? To schedule an appointment with our team of experts, contact Clear Title at (850) 202-8518 or visit our website at ClearTitleNWFL.com.