Seller net sheets are an invaluable tool for real estate brokers when they first meet with their listing clients. There are a lot of closing related costs traditionally paid for by the Seller in a real estate transaction. Among these costs are any payoffs on existing mortgages, the real estate broker commissions (up to a total of 6% of the sale price), the owner’s title insurance policy for the Buyer, homeowner association transfer fees, taxes, and closing fees. Combined, all these costs can add up to a substantial amount. There is nothing worse for a Seller than to sell their home and have to bring funds to closing. Getting ahead of this type of disappointment is the advantage that a seller net sheet offers. Additionally, the information a seller net sheet offers places the Seller in a better position to consider counteroffers that include seller concessions or other seller paid closing costs.
Along with ordering an ownership & encumbrance report to get snapshot of the title to the property and vesting deed, real estate brokers should go armed with a seller net sheet to their initial listing appointment with a Seller. Request that the Seller have handy a few items to make it easier to fill out the net sheet and provide the Seller with an estimate of the costs of the transaction to the Seller:
- Recent mortgage coupon or statement that shows the remaining amount of Principal on the loan for a payoff.
- If the home is in an HOA, any dues amount that may need to be paid at closing, including any additional fees chargeable to the seller, like a transfer fee or working capital.
- Any water, storm water, wastewater, or tax bills that have either already been paid or may come due around the time of the closing.
You can order an O&E report and download our Seller Net Sheet Calculator directly at
www.FirstIntegrityTitle.com under Client Resources > For Real Estate Agents!
When filling out First Integrity Title’s net sheet calculator, the information below is needed to best provide the Seller an estimate of costs and net proceeds:
- Estimated sales price
- Estimated closing date
- When was the property last purchased or refinanced?
- 1st loan payoff
- 1st loan payoff penalty if applicable
- 2nd loan payoff and 2nd loan prepayment penalty if applicable
- Any seller concessions or seller paid buyer costs?
- These fields auto calculate based on transaction details,
- as well as closing fee split in half between Seller and Buyer
- Cost of home warranty if provided
- Estimated attorney’s fees if applicable
Real Estate Services
- Selling agent commission
- Listing agent commission
- Transaction fee if applicable
Taxes and HOA
- Amount of last year’s property taxes
- Have taxes been paid?
- Assessments costs if applicable
- HOA Dues/HOA status letter estimates if applicable
- Estimated water/sewer