What a Sellers’ Net Sheet Is and How it Helps You

A Seller’s Net Sheet is a document that calculates how much money one can expect to have when the sale of their home is final.

Seller Net Sheets factor in all of the fees and expenses that occur in the process of the sale, leaving the seller with an accurate estimate of what they can expect to take home when all is said and done.

For example, if you sold your home at the asking price of $200,000, the actual amount of money you take home may only be $165,000. Seller’s Net Sheets come into play and tell you where that $35,000 went, allowing the seller to have a better idea in the exact amount of money they can expect to walk away with when the sale of their home is final.

It is important to obtain or create a Seller’s Net Sheet for a variety of reasons. First and most importantly, it provides a road map to where the percentage of closing costs and commissions are allocated.  You’ll also learn why you as the seller will owe what you do, and what you can expect to keep after all is said and done.  

Now that you know why seller’s net sheets are important, lets jump into some of the frequently asked questions about them, and learn how to read one.

How to Read a Seller’s Net Sheet

Reading a seller’s net sheet is easy.  Simply look at the sale price, subtract the fees and deductions, and you now have your estimated profit from selling you home.  Although the components can vary from state to state, the sheets are overall very similar. The purchase price is the number before any deductions.  Then we go into what will be deducted from this price.  

First you’ll find any and all of the commissions (as an estimate) that you should be expecting to pay.  These are generally a percentage of the total purchase price. Next are the title insurance costs, followed by escrow fees and property taxes.  By taking the total of all of these expenses and subtracting them from the total purchase price, this is how you get to the final take-home cash total.  

Does Your Real Estate Agent Prepare The Sheet?

Seller’s Net Sheets can be prepared by both or either the seller or the real estate agent. There are benefits to preparing it on your own, or letting your professional agent handle it. 

If you as the seller choose to prepare your net sheet on your own, various calculators are available online which will make this easy.  Simply type “net seller sheet calculator” into Google, Bing, Duck Duck Go, or your favorite search engine, and you’ll find a calculator that works for your needs.  By doing this, you can get an immediate idea as to what costs you can expect to accrue while closing on the sale of your home. However, if you are using a real estate agent, they can and most likely will prepare a net sheet for you. 

This is what we recommend as real estate agents are more familiar with them, and they can predict hidden fees and get you more accurate numbers.  Accuracy is the main benefit to having your real estate agent prepare your seller’s net sheet for you.

How Do I Calculate the After-sale Profit?

The best practice to calculate the after-sale profit is first to take the total home sale price.

You then deduct any real estate agent fees, which land around 5-6% of the total sale price. Other fees may include but are not limited to:

• Any staging and prep work to the property
• Seller concessions
• Overlap costs like paying two mortgage payments
• Tile escrow and transfer tax

These percentages vary but are usually around 1-2% in each circumstance. This overall amount, in comparison to your initial investment in the property, will provide your total after-sale profit. It’s also fair to mention that other fees can come into play, depending on where the house being sold is located.  For example, in the state of Maryland, the seller is required to pay 0.5% in transfer taxes, unless they are a first time Maryland home buyer.