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Budget smarter
Definition
Net Sheets are tools real estate agents may use to show a clear outline to their clients what they may net at closing after the sale of a home. For buyers, it is a useful tool to show what amounts will be needed and applied to the purchase of a home. For sellers, it will show what amount they may net at the sale of their home.
Calculations Needed
Seller: Current loan balance, interest, tax percentage (or amount being paid), as well as any other costs contributing to the home for sale.
EX) Repairs, updates, maintenance, etc.
Buyer: Interest rate for purchase, down payment amount, loan term, etc.
**Note: The more information provided, the more accurate the Net Sheet.**
Accuracy
The basics are outlined above, however some other factors and numbers that may help contribute to the accuracy may include, but are not limited to:
Escrow Costs
Negotiation Costs
Concessions
Additional Payments (offered by either parties)
Number of Net Sheets
A Net Sheet should be provided for clients whenever a monetary change during the housing transaction takes place. This would include during the negotiation period between parties, requests on costs or credit, change of the home sales price, and other factors that may involve funds during the sales process.
**Note: A Net Sheet may be calculated at any time at the client’s request to help keep track of any expenses during the transaction, and is highly advised.**
Conclusion
Net Sheets are an essential tool in our business practice. We believe that providing all of this information helps guide our clients to making smarter real estate decisions. We advise that this be requested and provided throughout the sales process to ensure a smoother, more informed, less stressful real estate experience. For any additional questions regarding Net Sheets, please let us know.
