WHAT IS A NETSHEET? SELLER1/29/2019
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
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
111 Depot Rd Suite A
Madison, MS 39110