There are many documents that home sellers need to familiarize themselves with during a property sale. One of the most important is the seller's closing statement. Here's more on what you need to know about this important step.
One of the great moments in a real estate transaction, and the one that matters, is when you've accepted an offer and you are closing the deal. It means all of your hard work has paid off.
The worry and anxiety that comes with selling a home is lifted. While this is an exciting time for any home seller, it is also one where you must be vigilant to make sure everything is as you expect. You will get your closing statement (also known as a settlement statement).
This is a document that itemizes all the charges and credits and then shows the net profit for the seller. It summarizes the finances of the real estate transaction. Final closing costs can range anywhere from 6% to 10% of the final sale price when you include commissions and third party fees.
If you hire an attorney to help you finalize your deal, the document itself is usually part of the total fees for closing. This can be a flat fee or an hourly rate. You can expect to pay anywhere from $300 to $2,000, depending on the complexity of the transaction.
This is one of the most important documents you need to examine during the sales process. You want to make sure they do not overcharge you for any services or fees. A mistake can cost you thousands of dollars.
Here's our comprehensive guide on what you need to know about a seller's closing statement.
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When Do I Get A Seller's Closing Statement?
As noted above, this document itemizes all of your expense and credits from the sale of your home. The documents are not uniform across the U.S., so the forms vary from state to state.
The statements may come about the same time you receive a closing disclosure form, if the seller has offered to pay any of the buyer's fees for obtaining a loan. This outlines loan costs and other fees regarding the borrower. It is usually handed out at least three days before the closing, so that the seller and their agent can review it.
The document is usually prepared by a lawyer, escrow firm, or a title company. You will sign the closing documents at this location.
What Exactly Is In a Seller's Closing Statement?
A seller's closing statement is much like a balance sheet. It lists your escrow number (the transaction number of the real estate deal), when the closing is, the settlement location, and the address of the property being sold. It also sets the disbursement date and other time frames pertinent to the deal.
The first part of a closing statement is the financial details, for example, how much the buyer is paying for the property. This will be the final sales price and all costs will be deducted from this number.
It may also include any furnishings that the buyer is paying for and it will include the deposit amount. It then will list the loan amount.
There is also a section on adjustments. This will show you how much you may owe in property taxes and other dues. This is where a seller credit may also be listed if the buyer owes you for any prepaid taxes.
What's a Net Sheet?
One of the biggest mistakes sellers make is confusing the seller's closing statement with net sheet. The seller's net sheet is a document a seller receives when they initially list their home.
The net sheet is an organizational worksheet prepared by your agent. It outlines and estimates what you will pay in selling costs, commissions, taxes, escrow costs, and mortgage fees. It also estimates your net profit. Sometimes these need to be adjusted during the duration of the sales process and you may get more than one net sheet.
But the key thing to remember about the costs and profit estimates on a net sheet is that they are just that. They are estimates and not exact. These are accurately itemized in the seller's closing statement.
Have a Closer Look
The key thing to remember about a seller's closing statement is that you want to check every line in the form. Double and triple check that what you agreed to when making the sale is in the document. You will want to speak to a professional realtor for guidance.
If your property transaction is not a typical sale and is more complicated, you may also want to have your attorney look it over before signing off on it.
Clever Partner Agents close deals every day. They work with first-time home sellers and investors with expansive portfolios. They know the ins and outs of real estate transactions. As a seller, there is no more valuable asset than the experience of a Partner Agent on your side.
They will make sure you keep as much of the sale price of your home as possible.
Let Clever Sell Your Home
A Clever Partner Agent can help make home selling easier when it comes time to deal with closing statements. They will ensure that you do not wind up with any fees or costs that are not your responsibility. They'll also offer sound advice through all the legal work and government requirements for a home sale.
Clever Partner Agents are full service, so you get all the benefits of a professional realtor at a much lower cost. Clever partners with top real estate agents from major companies like Keller Williams, Century 21, and RE/MAX. Our Partner Agents will make sure your home sells fast and for its premium price.