One of the most important things sellers want to know is “How Much Money Will I Make From the Sale of My House?”.
We’ve been very fortunate with our sellers, none have been upside down in their homes…meaning none of them owed more than the house was valued at. Right after we determine market value on a listing and determine with the sellers what an acceptable listing price is, we prepare a SELLER’S NET SHEET for our clients. This document helps the seller see at a glance all of the loans, liens and associated expenses deducted from the purchase price of the house. A second benefit of a SELLER’S NET SHEET comes if we should have to enter a DUAL AGENCY role with our clients. The SELLER’S NET SHEET is prepared with a minimum of three potential offer amounts and armed with that information, the Seller is much better able to decide on their own what an acceptable offer might be.
The first set of expenses we deduct from the purchase price would be the encumbrances, such as first and second mortgage balances, interest on those balances and any other outstanding liens.
There are also expenses associated with the sale of the house that must be deducted from the purchase price. These would include the brokerage fee, attorney and assorted deed preparation and recording fees, the revenue stamps, pro-ration of taxes and homeowner association fees, plus any costs connected with getting the house ready to list.
In the event that an offer is received requesting assistance with buyer closing costs, we estimate what those fees might be and deduct from the purchase price. Even though these expenses are only possibilities, it is better to figure them in and then be pleasantly surprised when there is no need to spend them!
The SELLER’S NET SHEET will reflect the different scenarios for purchase price less the expenses leaving the seller with a pretty darned good idea of what the NET proceeds will be.
We always find that the sellers are much more confident about the process of selling their home when they are armed with the knowledge of what their bottom line really is. If you would like to know how much money you stand to make from the sale of your house, just ask your agent to prepare a SELLER’S NET SHEET for you.