Why Every Seller Needs a Written Net Proceeds Estimate
Selling a home is complicated and many sellers don’t know what to expect. Some sellers even think that if they sell their house for $450,000, they get a check for $450,000! They may not understand the closing costs they are obligated to pay, or who pays off their existing mortgage, or how their property taxes get paid, etc.
This is where having a written net proceeds estimate (or net sheet for short), can help guide the conversation and help communicate those expenses for realistic expectations. So why are they so important?
- They give clear expectations to the seller and agent of what expenses the seller is expected to pay.
- The seller signs and acknowledges those expenses, in other words, they agree to pay them.
- It shows your professionalism.
Using Seller’s Net Proceeds Estimate will help you avoid any surprises when selling the seller’s house. This tool also helps sellers understand how much they can afford in their next house purchase by understanding their proceeds.
If your company doesn’t offer a net sheet with seller acknowledgements (signatures), you need to get on ASAP. This can save you big time in the case of a problem.
Imagine your seller is at the closing. They look at the closing statement and freak out about all the costs. In the scenario of not wasting time on providing a net sheet, you could try to calm them down, to no avail. The seller may even ask you to pay some of the costs, they might be that mad! Now imagine a different scenario, where you take out your signed and executed seller’s net proceeds estimate to show them the expenses they agreed to pay. You cross reference those expenses on the closing statement, and they start signing!
I don’t know about you, but I’d rather have a happy customer in the end and not have to pay any of their fees. If you don’t have a spreadsheet, no worries.
Use this excel spreadsheet template that shows the net proceeds of the sale after all expenses are paid by the seller, including closing costs, real estate agent commissions, property taxes and more! It includes pre-calculated formulas so all you need to do is fill in the information to the right, and the spreadsheet does the rest. The spreadsheet also has instructions for using it built in. As a read only document, you can’t screw it up. If you need a net sheet, feel free to check this one out.
Net sheets provide important details so sellers can make informed decisions regarding pricing, negotiating and selling their house. Sellers deserve transparency in the process so make sure you provide a net sheet and help them understand those numbers.
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