What is a Seller’s Net Sheet?
It’s an understatement to say it’s a seller’s market right now for homes (August 2021). Supply is low and prices are high – and they are expected to continue climbing. If you own your home, you might think that now is the perfect time to sell. And, depending on where you want to live after you sell your home, that might be the right decision. Just keep in mind that if you want to purchase another home, “home prices nationwide…increased year over year by 17.2% in June 2021 compared with June 2020 and increased by 2.3% in June 2021 compared with May 2021” (according to CoreLogic).
When you are looking at the sale prices of other homes in your area, it’s easy to get caught up in the huge sale numbers without taking into consideration the fees and expenses that eat away at your bottom line. A seller’s net sheet can help you determine what the REAL number is that you will receive after the sale of your home is finalized.
General Guideline: Subtract 10%
If you list your home for $239,900 (the median home price in Pensacola, Florida, at the writing of this blog), expect to spend $23,990 for such expenses as real estate commissions (approximately 6%), home improvement costs you will cover for the buyer (seller concessions), closing costs, taxes, loan payoff, HOA fees (if your fee is due before you move out), inspections, home warranty, etc. It is also recommended to hire a title company to handle important aspects of the sale such as escrow services to ensure the buyer’s deposit money will become yours. All of these items are put into the net sheet so you can see everything itemized. The bottom line will list the seller’s net proceeds.
Spend Money to Make Money
In the past, it was important to make upgrades to your home prior to listing it – kitchen remodels, new flooring, new appliances, etc. Because inventory is so limited in this current market, it may not be necessary to do these upgrades. However, putting a little more money into your home may increase the value substantially. While the costs of these upgrades would not be something included in the seller’s net sheet, it’s definitely something to consider when you are thinking of listing your home.
Unless you have a crew of family and friends with pickup trucks and strong backs, you may need to hire professional movers to move your possessions from house to house. This is another line item to consider – apart from the net sheet – that will affect your bottom line.
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.