So many sellers want to know: “How much will I pocket when selling my home?” And, unfortunately, the answer to this question isn’t very simple. Some many different costs and expenses come up during the home selling process, so the actual money you earn might be less than you’d think.
That’s why the seller’s net sheet is so important. It’s an invaluable tool used by real estate professionals to show a homeowner exactly what they’ll pocket at the close of a sale. But what exactly is a net sheet? Let’s break it down.
What is a Seller’s Net Sheet, and Why is it Important?
A seller’s net sheet is a digital or physical document that carefully estimates how much cash you will receive once you deduct the expenses associated with selling your home. It’s essentially the real estate equivalent of a detailed budget analysis or expense report. Using a net sheet, we track expenses like:
- Commissions for Listing and Buying Agents
- Title Document Preparation Fees
- Escrow Fees
- Home Warranties (for the Buyer and Seller)
- Title Policy
- Property Survey
- Closing Costs
- And More!
To be as accurate as possible, we often ask sellers to provide additional information, including their mortgage loan payoff or monthly/annual HOA fees. These expenses will play a significant role in helping us determine how much money you’ll actually make once the sale of your home is finalized.
Of course, one of the most important numbers included in a seller’s net sheet is the expected sale price of your home. One of the biggest benefits of working with an experienced and knowledgeable agent is the fact that they can run a comparative market analysis report and determine the right price for your home based on market conditions. That means you’ll get a good idea of how much you make long before you actually go to market.
This is an essential tool because it removes all the mystery. You’ll know almost exactly how much money you’ll make before you even get started. That way, you get to make an informed decision from the very beginning.
Net Sheet Terms You Should Know
The real estate industry is full of terminology and jargon that most people don’t know. So, if you’re planning to sell your home, here are some seller’s net sheet terms you should probably know.
Appraisal Fees – the cost accrued during the appraisal process, paid to an appraiser.
Attorney Fees – the amount paid to an attorney to create the seller’s net sheet.
Estimated Sale Price – the estimated price for your home, based on expert market analysis.
HOA Fees – fees paid to the Homeowner’s Association.
Home Warranty – the cost of a home warranty purchased by the seller.
Inspection Fees – the amount paid to the inspector for inspecting the property.
Loan Payoff – the amount of money still owed on the mortgage.
Realtor Commission – the commission earned by the real estate agent.
Release Fee – the fee charged by lenders that covers the cost of title generation.
There will be more terms like these that will pop up during the real estate process. If you’re ever confused or want to know what something means, reach out to your agent.
Want to Talk to an Expert?
Are you overwhelmed by all this real estate lingo? Contact the Welch Team today! We’re experts in Northeast Florida and Jacksonville real estate, and we’d be happy to guide you every step of the way.