Selling your home is no easy task. From appraisals to cleaning out your basement, it can be quite the hassle.
Fortunately, the promise of a sizable profit often helps to alleviate temporary stress. But just how sizable are we talking? It depends on a variety of factors associated with selling your home.
Don’t worry, you don’t need to be a finance guru or real estate expert to find out how much you can expect to earn from the sale of your home. All it takes is a good look at your seller’s net sheet.
Seller’s Net Sheet 101
You’ll likely find that the amount of money you pocket at the end of the sale is significantly less than you expected. So, where did all of your money actually go? The first thing that you should do is check your seller’s net sheet.
A seller’s net sheet will provide an estimation of expenses that will be taken out of the net proceeds of your home. Your net sheet will take into account expenses that come up and take away from the profit from the sale. Expenses related to the sale of your home can vary from state to state, so it’s a good idea to discuss state expenses with your real estate agent.
Net sheets will include expenses that range from big-ticket fees like agent commission, closing costs, mortgage payout, and property taxes. They also include smaller costs like escrow fees, tax certificates, and even e-file fees. The more detailed the deductions on your net sheet are, the more accurate the predicted profit from the sale of your home will be.
Most often, it’s essential to look over your net sheet to evaluate expenses that you can cut in order to maximize your profit margin. For example, one of the biggest costs on your net sheet will be real estate agent fees. Most real estate agents receive a commission of 3% of the value of your home.
Seeing a fee that high would give anyone a shock. However, a solution could be finding full-service real estate agents for a fraction of the cost. If you are interested in lowering the expenses on your net sheet, a flat-fee real estate agent could be the answer.
Getting a Net Sheet Prepared
A net sheet can be drawn up by your listing agent or your title company. However, they are not actually required to give you one. Whether you are a seasoned seller or a first timer, a net sheet is a valuable asset. Not only does it give you an accurate number to work with, but it can also help you prepare for unexpected costs.
Still not sold? Here are some more reasons that you should consider having a net sheet prepared for you:
- You can edit a net sheet based on best or worst case scenarios. This can help you get a better idea of what to expect.
- You can prepare your own net sheet using templates online to make them as detailed or generic as you’d like.
- As a seller, you can work with an accountant by providing them with your net sheet. They can help you figure out the best use for your money whether it be investments or in a retirement account.
- Net sheets are drawn up at different steps in your sales journey, they can allow you to keep track of changes during negotiations and consider the variables of the offers that you may receive.
Ultimately, it’s your choice whether or not to use a net sheet. Typically, your goals when it comes to selling your home will be the determining factor here. For example, if your goal is to pay off your mortgage and get out of debt, you’ll want to have a good idea of what your profit margin will be and budget based on that number.
If you are in the process of selling your home and looking to maximize the profits, Clever can help. Our real estate agents are dedicated to lowering your expenses by working for a flat-rate fee of just $3,000 or 1% if your home sells for more than $350,000. Working with one of Clever’s top-tier Partner Agents can help you to negotiate the sale of your home on your terms.