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WHAT IS A NETSHEET? SELLER

1/29/2019
 
WHAT IS A NETSHEET?    
For The Seller

This is a question I get a lot from my clients. 
What are netsheets you ask? Maybe your real estate agent you have worked with used one and maybe they did not.
Netsheets is a form that is divided into two sections. One section is divided for the seller. The other is divided for the buyer.

In the sellers Netsheet it will generally have lines for these things:
  • Potential List Price
  • Potential Sales Price
  • Commission amount agreed upon
  • Approx. appraisal fee
  • Approx. attorney's fee
  • Approx. Title Search/Cert.
  • Approx. Flood Certificate fee
  • Approx. Termite fee
  • Approx. Recording fee
  • Approx. Survey fee
  • Approx. Courier fee
  • Approx. Home Warranty fee
  • Approx. Leasehold transfer fee
  • Approx. Taxes you will have to pay at closing (explained below)
  • Approx. Loan payoff
DISCLAIMER

First let me insert a disclaimer here. NOT ALL of these fees will apply to everyone. Everything is negotiable in a contract. For example: You may not need a survey because the buyer did not request it or because you live in a subdivision that has the plat of land available for the new owners. 





NETSHEETS ARE ESTIMATES NOT FINAL ACCURATE NUMBERS


The numbers you realtors insert in these boxes are all ESTIMATES! We as agents try to get these numbers as close as possible for our sellers and buyers however these numbers can be inaccurate depending on many factors that we as agents can not always know this early in the game!



NON HOMESTEAD VS. HOMESTEAD EXEMPTION

On the taxes portion. I really felt like this is a topic that should be addressed carefully. Taxes change. Some of the tax offices have information online as to what the taxes are unfortunately now all of these online sites are not kept up-to-date. Another thing to consider is if you are selling a home that you do NOT have homestead exemption on is that those numbers have to be accurate. Some people sometimes think their homes are filed under homestead and are actually not. They tell the real estate agent they filed homestead exemption. The realtor then calls the county tax office to ask them how much is the home exemption rate on X property. The agent will then return with this low number the seller is expecting to pay for their portion of taxes at closing and before closing it is discovered they owe double taxes than what they had originally planned. A lot of times this is very frustrating for the sellers. I can totally understand that. However, we just have to be mindful that the agents are working for you and are taking steps to get answers with the information you gave them as a preliminary figure. 

The other thing as a seller when pertaining to non homestead exempt properties is that most buyers and their agents will ask for you the seller to pay the difference between the non homestead and homestead exempt taxes at closing. This is something most sellers who do not have homestead exemption needs to be prepared for or discuss with our agent as to how you would want to handle that in an offer. 

It is important to remember that these estimates are all preliminary. You will get your final and accurate disclosure form from the attorney's office or your lender before closing as to what your final expenses will be at closing. I have found that there are cases when netsheets are done and sellers get very angry with their agents about the inaccuracy in the preliminary netsheet completed by the agent and the final disclosure from the attorney's office. On the other hand, I know that some agents may not do their job thoroughly and drop the ball on performing their due diligence in investigating those numbers to get them as close as they can. That IS unfortunate. However, as a rule of thumb, NEVER take the netsheet as an ACCURATE quote. It is a guideline for sellers to visually look at to determine their net after all the expenses are paid and the mortgage is paid off. 

While netsheets may not be accurate they are helpful in giving a visual understanding to compute what a possible net for a seller would be in given situations of the sales process. 

Be sure to ask your real estate agent, lender, attorney, or insurance agent any questions pertaining to particular moving parts and a more accurate understanding of what your situation will look like.



For more information please contact                                   
Rachel Graves
601-983-9582
RE/MAX Marketplace
111 Depot Rd Suite A
Madison, MS 39110








Important Things To Know When Renovating Your Home To Prepare To Enter The Market

1/26/2019
GETTING YOUR HOME MARKET READY

As sellers we always want and deserve to get the best price for our home when we list it for sale. First to possibly stand a chance to get that top square foot price for your home then sellers need to make sure their home is comparable to the other homes that are bringing in those top square foot prices.

What does that mean?

Lets say your home is approx. 2200 sft, 3 bedrooms 2 bath. Your home was built in 1994. Your flooring coverings are all ceramic tile with formica counter tops. Your walls are mixed with old paint and wallpaper. Your fixtures are all the brass colored fixtures. Otherwise your home is a very well built cozy home on a similar lot as the other homes in our neighborhood.

Now lets say a home that closed two months prior to you listing your home closed at $115 a sqft. 
This home is approx. 2200 sqft., 3 bedrooms and 2 baths. It was built in 2012. The flooring is a laminate wood throughout with some tile in the kitchen and bathrooms. It has granite counter tops with nickel fixtures and lighting throughout. It was freshly painted inside and outside. 

So how does your home compare to the one sold two months before that at $115 a sqft?

Let's take a closer look through the eyes of a buyer.

First there is an immediate difference in the ages of the two homes. Your home is 19 years older. There have been no updates to speak of since the home was built. First the roofing if it hasn't already been replaced will probably need to be replaced because the given understanding of life of a shingled roof is said to be around 20 years. If you do not replace your roof you can expect a discount in price in offers for replacement of the roof. 

1st DISCOUNT ROOF  


Now, the next important factor would be the outdated flooring, counter tops, and fixtures. If you want to compete with the newer homes AND receive top dollar for your home then you will need to update your home. 

This part is where clients and I have to come to an understanding. Everyone wants something for a good price in terms of services, yet we want THE best price for the sale of our home... How would those two work together? Well if you go the cheapest route possible AND IT SHOWS when updating your home? It just DOES NOT WORK. YES, shop around for a good price but more importantly shop around for quality skilled companies. I can NOT tell you how many clients FREAKED out when getting quotes from carpenters/painters/contractors and thought... "Hey, we can do this ourselves and save money" or "I can find some person to do this work on the side for cheap!"
And I can NOT tell you how many times this turned out VERY poorly for the seller, whether it be the realtors representing the buyer noticed the poor workmenship when showing the property or the buyer noticed. How many times Home Inspectors have pointed out these bad mistakes or work done incorrectly. This all resulted in way lower offers, OR the seller having to spend more money to get someone qualified to come fix what someone else did wrong. 

2ND DISCOUNT NO UPDATING OR POORLY UPDATED

If there is any rot on the home have it FIXED! With a lot of lenders this is an issue with them even considering a loan on a home. Rot HAS to be fixed and replaced. If you do not have it done ahead of time a home inspector or an appraiser will most likely flag it. YOU will have to pay for it anyway. 

There are several other factors that can affect a seller getting top dollar for their home but these are some pretty important ones. 

Also there is a chance you will not get the same as a 19 year newer home however, you can for sure compete if you do things correctly!

UNSURE OF HOW TO GET YOUR HOME MARKET READY?

CALL ME FOR A FREE CONSULTATION!
RACHEL GRAVES
RE/MAX MARKETPLACE
111 DEPOT RD
MADISON, MS 39110
601-983-9582
GRAVESRACHEL1022@GMAIL.COM





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