Sellers Estimated Net Sheet- Do One At Every Listing Appointment

By
Real Estate Agent with Long & Foster Real Estate, Inc., Annapolis MD 21403 DRE# 319853
http://activerain.com/droplet/4kPG

Sellers Estimated Net Sheet-

Do One At Every Listing Appointment

Last week I was contacted by email and asked if I would be interested in coming over to do a listing presentation. They said they had already interviewed 3 agents but a friend of theirs told them they should interview me too before making their final decision. Naturally I said yes and the appointment was set and off I went.

Now my listing appointments are never about me and always about them. Their plans, their needs, their concerns, their wants. As I was delving deeper into their wants I found their main want from an agent is for that agent to accept $X listing commission. OK that's an interesting tidbit to know about up front.

As I went deeper into their reasoning for $X listing commission I found that they had figured this amount out on their own by using what knowledge they had as to customary closing costs asociated with the sale of a property.

Estimated Net SheetM/M Seller before we talk commissions let me show you what I provide to all my clients and then we can talk about your bottom line. As I went through my presentation I could see their thoughts were churning and when I finished I said now... lets do an estimated net sheet so you can see what your bottom line will be at the price we discussed and at the commission I will put in. Sure they said. Do you want to email it to me? No I will do it right here and now I said. Really they answered? Of course I said. Didn't the three agents before me do a net sheet also? Errr... No... they said. Goodness then how do you know what you may net when selling at such and such price with such and such costs? I asked. We just sort of figured it out ourselves using the figures we thought were right. Oh my.... So I did my net sheet and went over the figures with them. From the look on their faces I could tell they truly had no idea what the true estimated figures were like.  

Now I know some Sellers may not hire you because they DO NOT like your Estimated Net Sheet. But when all is said and done an Estimated Net Sheet is needed at ALL listing presentations. Sellers need to know and need to be prepared for worse case scenario. They need to see the correct figures and not the figures they have pulled out of the sky somewhere. They need to know the truth about what todays market value will put in their pocket so they can make informed selling decisions up front and not decisions based on being pushed in a corner later.

I got the listing....at the sales price that all 4 of us agents had very closely suggested...and at the commission I normally charge. All because I did an Estimated Net Sheet.

listing agreementI'm not sure why the 3 agents that came before me did not do an Estimated Net Sheet. Maybe it was fear of what the Sellers were suggesting as to commission. Or maybe they thought once they heard they had the listing they would do one then. Or maybe it was just being too laid back. Whatever the reason, in my book, an Estimated Sellers Net Sheet should be done right then and there. Before I leave and not when I come back. Sure it might not be the bottom line a Seller wants to see but it sure opens communication up to what they need to hear and see. And it puts me one step professionally above all those agents who do not do one.

And who knows, There is always that possibility I may never get that second chance. Not likely but possible :)

Sellers Estimated Net Sheet-

Do One At Every Listing Appointment 

Posted by
*****************************************************

About the Author Martha Brown- As a third generation Annapolitan I love to write about my experiences in and out of the real estate market. Licensed since 1992 all with Long & Foster I am a Certified Residential Specialist (CRS) and a Seller Representation Specialist (SRS) whose passion is homes in the Annapolis MD area and surrounding communities. My goal is to help my clients understand the real estate market and to then make sound real estate decisions. 

 

Martha can be reached  at 410-260-2800 ofc or 

martha@homesaroundannapolis.com.

When searching for Annapolis area homes for sale

there is no better place than

www.HomesAroundAnnapolis.com

 

Have a real estate question?? 

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Martha Brown of Long & Foster Real Estate.

320 Sixth Street

Annapolis, MD 21403

410-260-2800 office

410-440-7839 cell/text  

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Re-Blogged 2 times:

Re-Blogged By Re-Blogged At
  1. Jean Terry 05/03/2009 06:37 AM
  2. Lisa Collins 05/04/2009 02:08 AM
Topic:
Real Estate Best Practices
Groups:
POSITIVE ATTITUDE for the Weary Soul
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Tags:
listing appointments
net sheets
sellers cost

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Ambassador
500,236
Virginia Hepp - Mesquite NV REALTOR
ERA - Mesquite NV Homes For Sale - Mesquite, NV
Mesquite NV Homes and Neighborhoods - Search MLS

Good post, Martha.  I do a high and low net sheet for a listing appointment.  'Fear is the unknown' - they can't make a commitment if they have doubts in their mind.  Then I do another one with any offer that comes in, based on the terms.  I do them for buyers, too, and give them a sample one in their price range in the beginning of their search, they appreciate it, especially first time buyers.

May 04, 2009 03:19 AM #82
Rainmaker
144,267
DAdrea Davie
Keller Williams Realty - Stockton, CA
Stanislaus & San Joaquin Short Sale Agent

This is a great service to provide...as the seller believe this is going above and beyond when this should be a regular practice for all agents. Thank you for sharing!

May 04, 2009 03:46 AM #83
Rainer
8,666
Ken Offidani
Coldwell Banker Select Professionals - Lancaster, PA

That is a great article And I agree..you always need to give an estimate of proceeds!!

May 04, 2009 03:51 AM #84
Anonymous
Elizabeth Vallance

I had an elderly realtor once tell me:  Not everybody understands "net" or "proceeds". But, they do understand WALK AWAY MONEY. So his advice was to always use that term! Elizabeth

May 04, 2009 05:35 AM #85
Rainer
67,461
Jan Evett
The Premier Property Group LLC - Rosemary Beach, FL
Broker Associate, 20 years+ in real estate

Agreeing with so many of the other experienced agents.  Your post shows a level of experience and expertise that brings value to the business.  Smart sellers will see the difference very quickly between a professional who provides full disclosure and all the facts up front over one who thinks it's all about his/her charming personality.  Congrats on being featured for this excellent post!

May 04, 2009 07:21 AM #86
Anonymous
Cynthia DeCourcey

Lots of solid feedback! Honestly as a nubie to the business I was afraid do a SNS.  After several years in the business I've found it's best to disclose as much info up front regarding the entire process as possible with sellers and buyers. The SNS upfront shows your integrity to get the job done as a professional. Love the excel sheet idea Dean - would you please email me a template?

May 04, 2009 08:28 AM #87
Rainmaker
504,538
Teral McDowell
Referral Patners LLC - Murphy, TX

When using the Sellers Estimate Net sheet in a listing presentation I have also had the seller(s) realize they were not ready to sale.  

May 04, 2009 12:00 PM #88
Rainmaker
118,458
AMBER NOBLE GARLAND - Top Real Estate Expert, Property Tax Appeal Specialist & Author
Strategic Marketing Expert & Relocation Specialist Serving New Jersey and nationwide! - Marlboro, NJ
- The Agent You Can Trust To Deliver REAL Results!

Martha, this is a great tool! In fact in our company it's mandatory.

May 04, 2009 01:35 PM #89
Rainer
19,294
Kathy Baker, GRI Tennessee Realtor
Realty 1 - Jamestown, TN

Hi Martha,

I agree, as a Florida Realtor, I never went to a listing without a net sheet prepared. 

As a new Tennessee licensee, I conferred with a local agent regarding net sheets. Her response was, "no one has ever asked me for a net sheet, other than 1 time, and that was a couple from Florida. (must have been one of my old clients) LOL!

Kathy B

May 04, 2009 02:44 PM #90
Rainmaker
272,533
Carrie Sampron
Home Smart Realty Group - Highlands Ranch, CO
ABR SFR & Kathy Sampron (303) 931-3629 Highlands R

Martha:  One thing we love about Active Rain is reading posts like this.  We have not done a net sheet at a listing presentation, sorry it just had not been suggested to us when we were learning, but we will find a way to incorporate this idea in the future.

May 05, 2009 10:06 AM #91
Rainmaker
587,990
Susan Neal
RE/MAX Gold, Fair Oaks - Fair Oaks, CA
Fair Oaks CA & Sacramento Area Real Estate Broker

Hi Martha - If I've had a conversation with the sellers before the presentation and they have mentioned a price they think is apropriate, I find that I may disagree with their pricing.  What I do is to prepare a net sheet with their price, with my suggested price, and perhaps one with a price in between.  I also do a very detailed CMA so they can understand that my price is what it will take to sell the home. 

What often floors them is that the net on their price is not as far off the net on mine as they might expect, since some costs are relatively constant.  I can usually get them to understand that my price (or at worst the middle one) is what they must choose.  And if they go higher than my suggested price, they need to be ready to schedule price reductions during marketing.  I also explain the plusses and minuses of starting higher and reducing later (more minuses than plusses in my opinion).

Good post, and interesting comments.

May 06, 2009 02:41 PM #92
Rainer
55,401
Kelsey Barklow
Evans & Evans Real Estate - Johnson City, TN
423/948-9154, Marne Drinnon 423/202-2277

Thanks Martha. I used to do them but for some reason, got away from them. I think I will start doing them again. Nice post and well written.

May 07, 2009 02:49 PM #93
Rainer
55,401
Kelsey Barklow
Evans & Evans Real Estate - Johnson City, TN
423/948-9154, Marne Drinnon 423/202-2277

Thanks Martha. I used to do them but for some reason, got away from them. I think I will start doing them again. Nice post and well written.

May 07, 2009 02:49 PM #94
Rainmaker
195,162
Antonio & Alexia Cardenas
Alameda County - San Leandro, CA. - San Leandro, CA
"The Realtors In Motion"

Sorry foe being late on reading this post Martha, but I believe that if you do not do a sellers net, you are not seen the big picture, that is the reason you are called! to show them what is the outcome of the sale of the house. I always do a seller's net because at the end no matter what the asking price is or what the possible sale price is, what really matters is the bottom line: How much money do I get if I sell this house right now? The average person does not know that there are city and country transfer taxes and what they are, or who pays for what. When an offer comes, I prepare another sellers net and then we compare them, if the numbers are equall or better is a go! I would not know what to do or how to list the house if I did not preprare a sellers net. And yes, I do leave those numbers behind and politely ask them not to show them to the other agents, but rather to "compare them" with theirs... Thanks for the post.

Antonio

May 10, 2009 05:13 AM #95
Rainmaker
541,348
Sonya Loose
Modern Realty - Beaverton, MI
The Lake Girl,Selling Waterfront in Gladwin County

Actually I seem to get most listings that I go to present at but never do a Sellers Estimated Net Sheet.  However, I LOVE the idea and will do one at the first appointment from here on out instead of waiting for an offer to do one. Great idea!

May 18, 2009 03:57 AM #96
Rainer
61,647
John King
Bluefax Realty, LLC - San Antonio, TX
President & Broker

I am AMAZED that agents donot do them.  I was in a GRI Class, and a BROKER said he NEVER DOES THEM!  A BROKER!

WOW...I couldn't imagine NOT doing one.  What if you get to the closing table with your seller (or the day before) and have to ask them to bring a check to close??  That would beuncomfortable if they thought they were going to be taking home a check, wouldn't it??

I do this with buyers as well, and have a good idea from the lender what their fees are, so it's easy to plug them in.

Do the hard work ONCE in Excel, then you just plug in the appropriate sales price, closing costs, and there ya go.

I would think that as a listing agent, it would border on negligence not to.  Just my two cents.

Thanks for a good article!  Well written.

Jan 01, 2011 12:32 PM #97
Anonymous
Joe B,

Great post, we just had our broker tell us a story this morning about how a few other brokers asked him - How is it Mike that we go on a listing presentatation before you and you seem to always beat us to the punch and get the listing. Mike explained that he always does a net sheet right infront of them and they feel they got a fair shake. A well done post and so important.

Joe B

Excellence RE

Whittier, CA

Feb 24, 2011 12:47 PM #98
Anonymous
Jason Smith (Realty Executives of the Bluegrass)
Does anyone have an MS Excel Net Profit Sheet they wouldn't mind emailing me?
Feb 19, 2012 04:06 AM #99
Anonymous
Jason Smith
Realty Executives of the Bluegrass (859) 358-5563 Jason.smith@realtyexecutives.com www.forsaleky.com
Feb 19, 2012 04:09 AM #100
Anonymous
Alice Wilcox

Is it a requirement by law? It should be, but is it?

May 31, 2016 11:11 PM #101
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