Overwhelmed by seller net sheet calculators? Don’t worry. Our PDF and guide will help you complete a seller net sheet the old fashioned way, with pen and paper.
Seller net sheets are documents that provide a good estimate of the amount of money you’ll earn if you sell your home. An agent or title company can prepare a seller net sheet for you. Because they have a good understanding of the local market and the costs involved, they'll be able to give you an accurate estimation.
To assist you in creating a seller net sheet, we’ve put together a:
- Seller Net Sheet PDF: A list of every potential cost they might incur selling a home. It will have fees that don’t apply to your situation, but you can just skip those.
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What is a seller net sheet?
A seller net sheet is a template that helps you calculate how much money you would receive from selling your home, after expenses. A net sheet helps you estimate your net proceeds (how much you make) by subtracting all of your selling costs from the sale price. Here is a simple formula:
Sale Price - Selling Costs = Estimated Net Proceeds
To complete a seller net sheet on your own, you need to estimate three main figures:
- Sale price: This is the price that you receive for the home. It may differ from the list price, depending on the state of your local market. In some cases, you can also add buyers credits (like prorated utilities) to this number for more accuracy.
- Selling costs: This includes expenses like repaying your existing mortgage, property taxes, real estate commissions, and any concessions you’re giving to the buyer.
- Net proceeds: Subtract the selling costs from the sales price to get your net proceeds.
Tip: In most cases, the best place to start is a calculator that will automatically populate many of the fields like tax rates and title fees. If you start your seller net sheet process by using a calculator, the only information you must input is your location, sales price, and outstanding loan amount to get an estimate.
What a seller net sheet doesn’t include
A seller net sheet only captures the cost of selling the home. It doesn't include the costs you may incur after you sell the home, like capital gains tax.
You pay capital gains tax on the amount that your home appreciated in value while you owned it — that is, the difference between the price you paid for the home, and the price you sold it for.
There are some exemptions that can reduce or waive your capital gains tax on a home sale, especially for a personal residence. Consult an accountant or financial advisor for the long-term tax consequences of selling your home.
When to use a seller net sheet
As a home seller, you should refer to a net sheet any time you want to estimate how much cash you’ll actually walk away with from your home sale. As you get farther into the sales process, you’ll get more accurate information on your likely sales price and costs, which you can use to update your estimates.
There are three major milestones during a home sale when a seller is likely to refer to a net sheet:
- When interviewing agents: A net sheet helps you see how much an agent is expecting to earn you for the home. It’s also a great way to gauge the experience of the agent with local listings, based on their understanding of the local market and various costs. You’ll also have a place to review the target sale price and commission before signing a contract.
- Setting and adjusting the list price: Use the seller net sheet to understand the net proceeds of different price points. It can help you understand the price at which you will break even on a sale. You can also compare how much you’ll make based on the type of financing used by your buyer; this may impact your closing costs.
- Comparing offers and concessions: Most offers include both an offer price and concessions — costs the buyer wants you to cover. A seller net sheet helps you compare how much you’ll make across multiple offers; because of concessions, the highest offer price won’t always win out!
You can also use a seller net sheet to make sure the final numbers you’re actually paying make sense and there are no surprise costs at closing. However, if you’re working with a real estate agent, this probably isn’t necessary: they’ll prepare a closing statement for you that serves the same purpose.
What costs appear on a seller net sheet
A seller net sheet lists all the fees you encounter in a typical home sale.
For most home sellers, the largest costs by far will be the mortgage repayment and realtor commissions. In addition to these, the net sheet will include a longer list of common fees.
Below are the most common types of fees you’ll see listed on a seller net sheet:
- Mortgage repayment: Anytime you borrowed against your home, whether it was a mortgage or a home equity loan, the lender filed a lien against the property. This puts the lender at the top of the list for repayment when you sell your home.
- Realtor fees: Most home sales involve two real estate agents, who typically receive 5-6% in total commissions. As a seller, these fees are paid out of your proceeds from the sale.
- Taxes and government fees: You may have to pay property taxes, transfer taxes, or stamps, depending on the location of your home. These fees may be flat or a percentage of the sales price, but they will likely have a minimal impact on your net proceeds.
- Other service fees: In addition to real estate agents, your sale may involve service providers like attorneys or accountants. These fees are usually lower and independent of the home price.
- Concessions: Buyers may ask for concessions if the home needs repairs or additional investment. Common concessions include home warranties, special assessments, and contributions toward closing costs.
- Miscellaneous fees: Fees come in all shapes and sizes and in all kinds of disguises. You may have to pay the homeowners association for documents or a notary for signatures. This is the section of your seller net sheet that’s least predictable since so much depends on your home and its location. Luckily, it’s usually insignificant compared to other expenses.
Who prepares a seller net sheet?
Typically, you’ll receive a seller net sheet from a real estate agent at the first meeting. Some agents may not be the best equipped to prepare a net sheet or may skip preparing one altogether. If you do not receive a satisfactory net sheet, consider requesting them from multiple agents or preparing one yourself.
Great agents handle dozens of transactions every year, so they have a good understanding of local costs, taxes, and fees. They’ll be able to offer you multiple scenarios and can help you make key decisions about the listing price and potential offers using the net sheet.
Is a seller net sheet required?
No one requires a seller net sheet. Your bank won’t need it, your agent won’t ask for it, and the title company doesn’t rely on it. It’s a tool that can help you plan multiple scenarios and project the potential earnings from selling your home at different price points. It’s a good idea to have one, but if you don’t want one, you don’t have to get one.
A seller net sheet simplifies financial decision making for you. You can use it to adjust the selling price, costs, and fees throughout the process. While a seller net sheet might not account for all the costs, it’s an invaluable tool for analyzing your property and selling your home.