Don't Forget the Seller's Net Sheet!

We all know what it takes to list a property for sale... Assessing the house, lots of research, lots of questions for the seller; doing a CMA by poring over comps to get the best comparables, and doing the math all the way through; an absorption rate study, looking at competitive properties currently on the market checking and triple-checking that price and those amenities that will be considered on the eventual appraisal. Gotta be priced right!! And then there's writing: the Listing Agreement, the Property Owners Association addendum, the Professional Services Disclosure, the Property Disclosure, etc. etc. Some of these vary by state and market, and this is not intended to be a full list, but to say:  Paperwork out the wazoo.

And there's one more math-filled form that's critical in this tough market: The Seller's Net Sheet.

How much is that seller going to walk away with (or have to bring to the closing table!) based on your learned estimate of the selling price, minus all the things that will be deducted from the sales amount.

Here's an easy example:

Seller owns his condo outright, but has discovered that condo living isn't his cup of tea. So we're going to sell his condo, which he bought only a year ago, and find him a private home.  We've gotta know what he's going to walk away with, so we'll know what price range to start looking in. Here's a simplified version of a Seller's Net Sheet:

                    Sales Price:                  $150,000.                                                                                 

                    Seller Concession           -   1,000. (the condo needs a new oven)

                    Pro-rated taxes              -     775.

                    REALTOR commission      -   7500.

                    Deed prep/atty fees        -     400.

                    Tax Stamps                   -     750.

                    Estimate of cost to sell   $ 10,425.  (subtract from sales price)

                    Seller's Estimated Net:   $139,575.

Makes sense, right? But since he bought the condo only a year ago (thank GOODNESS we got it for a good price,) and though he can sell it for a little more than he paid for it, he's still not going to get all his money back because of the cost of sale. He needs to understand this up front, and be okay with the differential. Imagine you did not prepare this sheet, and did not educate him about this reality.

Do the net sheet! (If you don't already use them, you can find them online, or email me and I'll send you one.)