For most home sellers, the bottom line is simple: “How much cash will I actually walk away with at closing?”
Answering this question accurately is often the deciding factor in whether a client chooses to list their home—and whether they choose you as their agent. A Seller Net Sheet is the fundamental tool that breaks down estimated closing costs, payoffs, and concessions to show sellers a clear picture of their net proceeds.
What is Included in a Net Sheet?
A net sheet balances the estimated purchase price against the mandatory and conditional costs of selling a property:
- Mandatory Selling Costs: Existing mortgage payoffs, real estate agent commissions, administrative/transaction coordinator fees, Owner’s Title Insurance Policy, prorated real estate taxes, HOA fees, title closing fees, and final utility escrows.
- Conditional Costs (Contract-Dependent): Buyer concessions, home warranties, agreed-upon repairs, or buyer closing cost contributions.
When Should You Prepare a Net Sheet?
- At the Listing Presentation: Bringing a preliminary net sheet to your initial presentation establishes instant credibility, showcases your industry expertise, and provides immediate financial clarity.
- During Offer Negotiations: When an offer or counteroffer comes in, running a fresh net sheet helps your seller evaluate the real-dollar impact of price adjustments and concession requests before signing.
Phase 1: Pre-Appointment Preparation
To build an accurate net sheet, gather key property details before your meeting.
1. Order an Ownership & Encumbrance (O&E) Report
Start by requesting an O&E report from Land Title (email oe@ltgc.com or call 303-850-4190). This report provides a quick snapshot of:
- Recorded ownership and length of tenure.
- Existing liens, original loan amounts, and recording dates.
- Reissue Rate Eligibility: Determines if your seller qualifies for a discounted title insurance rate (typically if title insurance was issued within the last 5 years).
2. Have the Seller Gather Documents
Ask your seller to bring the following items to your meeting:
- Most recent mortgage statement(s) (including any HELOCs).
- Current statements or coupons for all primary and master HOA dues.
- Recent billing statements for water, sewer, and wastewater services.
3. Discuss Seller Expectations
Prompt your sellers to consider these key negotiation factors in advance:
- Are they willing to offer buyer concessions?
- Do they plan to offer or pay for a home warranty?
Phase 2: Inputting Details into the Net Sheet Calculator
When using the Land Title Net Sheet Calculator, enter the following variables for an accurate estimate:
- Sales Price & Closing Date: Estimated purchase price based on your CMA, and an estimated closing date (factoring average Days on Market plus a standard 30–45 day closing window).
- Title Fees:
- Owner’s Title Policy: Traditionally paid by the seller. (Check for Reissue Rate eligibility!)
- Title Closing Fee: Traditionally split 50/50 between buyer and seller.
- Owner’s Extended Coverage (OEC): Typically paid by the seller (approx. $65).
- Commissions & Admin Fees: Total broker commissions, administrative fees, or Transaction Coordinator charges.
- Mortgage Payoffs:
- Principal balance of all loans/HELOCs.
- Pro Tip: Interest is paid one month in arrears. Add one full month of interest plus ~$75 for statement/fax fees to account for payoff quotes. Confirm any recent HELOC draws or payments.
- HOA Costs: Monthly dues for all sub/master associations, estimated transfer fees (~$350/HOA), and HOA document ordering fees ($150 for one HOA, $250 for two).
- Taxes & Utilities: Previous year’s property tax status (paid or due), past-due taxes, and utility escrows (a minimum $500 escrow is required by the title company for final water/sewer bills).
- Concessions & Liens: Any buyer credits, home warranty costs, tax/county liens, or outstanding judgments.
Generate and Share Instantly
Once your details are entered, you can generate a clean, professional summary directly through www.ltgc.com and email it directly to your clients during or immediately following your appointment.
